Kelly, Hirono Lead Bill to Repeal Federal Private School Voucher Program, Keep Public Dollars in Public Schools

Read Kelly’sArizona Republicop-ed:“Don’t follow Arizona’s example. End universal vouchers now”
Today, Senators Mark Kelly (D-AZ) and Mazie Hirono (D-HI) led 28 of their colleagues in introducing theKeep Public Funds in Public Schools Actto protect public education for all American kids by repealing the school voucher provisions tucked into the Republican-passedOne Big Beautiful BillAct,which created the first-ever federal private school voucher program. Kelly and Hirono’s legislation is endorsed by 163nationalandstateorganizations.
The new, permanent federal private school voucher program created by Trump and Republicans in Congress lets individuals claim a dollar-for-dollar tax credit for donations up to $1,700 to organizations that fund private K-12 tuition. The Institute on Taxation and Economic Policieswarnsthat the program could cost taxpayers tens of billions of dollars per year—far more than official estimates suggest.
Arizona’s own voucher program is acautionary talefor how for how such initiatives bust budgets and benefit already wealthy families at the expense of public schools and working families. Earlier this year, it wasreportedthat Arizona Empowerment Scholarship Accounts were used to spend over $10 million in taxpayer dollars on banned purchases, including everything from gift cards to luxury hotel stays. The program has also led to declining enrollment in public schools and closure of schools, making a good public education harder to reach for families.
“I’m the product of a good public education and know how important it is to give every kid a fair shot, but universal voucher programs are threatening that for millions of hardworking families,”said Kelly.“In Arizona, we’ve already seen how universal vouchers are leading to rampant fraud and benefitting people who already had the means to send their kids to private school, while decimating public education for everyone else. If we want to keep improving education to build a better future for the next generation, we have to start with keeping public funds in public schools that serve all kids.”
“As the Trump administration continues its all-out, coordinated attack on public education, its newly-created national school voucher program will harm our public schools by diverting critical resources that could otherwise be used to support students,”said Hirono.“I am proud to co-lead theKeep Public Funds in Public Schools Act, which would help to ensure that all students have access to a quality, public education—regardless of their circumstances.”
In addition to Kelly and Hirono, theKeep Public Funds in Public Schools Actis cosponsored by Senators Michael Bennet (D-CO), Richard Blumenthal (D-CT), Cory Booker (D-NJ), Lisa Blunt Rochester (D-DE), Chris Coons (D-DE), Tammy Duckworth (D-IL), Dick Durbin (D-IL), John Fetterman (D-PA), Kirsten Gillibrand (D-NY), Martin Heinrich (D-NM), Tim Kaine (D-VA), Andy Kim (D-NJ), Angus King (I-ME), Ben Ray Luján (D-NM), Ed Markey (D-MA), Jeff Merkley (D-OR), Chris Murphy (D-CT), Alex Padilla (D-CA), Jack Reed (D-RI), Bernie Sanders (I-VT), Adam Schiff (D-CA), Chuck Schumer (D-NY), Jeanne Shaheen (D-NH), Tina Smith (D-MN), Chris Van Hollen (D-MD), Elizabeth Warren (D-MA), Peter Welch (D-VT), and Ron Wyden (D-OR).
See whatArizona and nationalleaders are saying in support of the bill:
“Arizona ranks nearly last in the nation in per-student funding, and we see the consequences every day — with schools closing and low pay pushing great educators out of the classroom. We can’t afford to divert more public dollars into private hands,”said Marisol Garcia, President of the Arizona Education Association.“Arizona’s voucher program — which is a model for the Trump administration’s national voucher program — has been a disaster for our state. Arizona educators are proud to endorse Senator Kelly’s Keep Public Funds in Public Schools Act, and we look forward to working with him to get it passed into law.”
“We proudly support theKeep Public Funds in Public Schools Actto prioritize funding for our neighborhood public schools, which are accountable to taxpayers and accept all students, rather than Trump’s federal voucher program that is designed to benefit the wealthy few. In Arizona, we’ve watched as our state’s $1 billion universal voucher program, rushed through with no accountability and no cap, has led to skyrocketing costs, massive cuts to teacher salaries and programs, and unprecedented school closures across the state. Arizona’s voucher program has been plagued by countless stories of fraud, waste, and abuse. We are grateful to Senator Kelly for standing up and for rightfully acknowledging that public funds belong in our public schools,”said Beth Lewis, Director of Save Our Schools Arizona.
“Every student deserves a fully-funded public school in their neighborhood that prepares them with the lessons, support, and life skills they need to reach their full potential. Parents and educators agree that we should be investing in public schools, where 90% of students and 95% of students with disabilities learn, not taking money away from them to send to private schools. Let’s reduce class sizes so students get more one-on-one attention, and increase educator pay to help address the teacher and staff shortages. That is why the National Education Association applauds Senator Mark Kelly for introducing legislation to repeal the first national school voucher program, which would drain funding from public schools and funnel it to unaccountable and discriminatory private schools,”saidNational Education Association President Becky Pringle.
“Last summer, Republicans in Congress passed a big, ugly bill that leaves Americans sicker, hungrier and poorer, to pay for tax breaks for the ultra-rich. The bill also writes a permanent school voucher scheme into the tax code that would siphon billions of dollars in public money into private schools—even as public schools remain woefully underfunded. This scheme could costover $50 billion a year—nearly double what the federal government currently spends on helping poor kids and kids with disabilities, even as President Trump is proposing to cut billions from public education. Public schools should be strengthened, not abandoned. That’s why we wholeheartedly support theKeep Public Funds in Public Schools Act,which would repeal the tax credit and help the neighborhood schools that 90 percent of kids attend,”said Randi Weingarten, AFT President.
“We commend Senators Kelly and Hirono for their leadership in introducing theKeep Public Funds in Public Schools Act. Their efforts would repeal the federal tax credit program that will funnel billions of dollars to private schools that are not held to the same legal obligations to protect students with disabilities, jeopardizing their academic and social emotional growth. NCLD firmly opposed this program when it became law last summer. We urge members of Congress to support this legislation and ensure federal funds come with the protections all students deserve,”said Dr. Jacqueline Rodriguez, CEO of the National Center for Learning Disabilities.
“Repealing the harmful federal school voucher program is a necessary step to protect and strengthen U.S. public schools. We thank the sponsors of this legislation for demonstrating their support of public education, one of the most important public goods underpinning our democracy,”said Jessica Levin, Education Law Center Litigation Director and Director of Public Funds Public Schools.
“We applaud Sens. Kelly and Hirono for leading this effort to stop taxpayer funds from going to the private school voucher scheme inserted in President Trump’s ‘big, beautiful bill’ last year. The nationwide voucher will force taxpayers to fund religious education and discrimination – undermining our Constitution’s promise of church-state separation. We urge Congress to protect religious freedom and public education by passing theKeep Public Funds in Public Schools Act,”said Rachel Laser, President and CEO, Americans United for Separation of Church and State.
“We applaud Senator Kelly for introducing the “Keep Public Funds in Public Schools Act.” The taxpayer-funded private school voucher program created in the “One Big Beautiful Bill Act” threatens to seriously undermine public schools, which serve 90% of students nationwide. The program lacks accountability for private schools, opens the door to discrimination against children, and is permanent and uncapped. To protect students and public education across the country, we support repealing this program and investing in our public schools,”said Bruce Lesley, President, First Focus Campaign for Children.
Background:
TheKeep Public Funds in Public Schools Actwould repeal Section 25F of the Internal Revenue Code added in HR 1, eliminating both the tax credit for contributions to scholarship granting organizations and the associated income exclusion, which would become effective in 2027.
The federal voucher program allows individuals to claim a nonrefundable tax credit of up to $1,700 for contributions to scholarship granting organizations (SGOs), which provide K-12 scholarships for private school tuition. The law sets no federal cap on donations, making the program open-ended in cost. The Joint Committee on Taxation scored the program at $25.9 billion over ten years, but the Institute for Taxation and Economic Policy estimates the real cost could reach $51 billion or more per year if a significant share of eligible taxpayers claim the credit.
Clickhereto read the full text of the bill.