A transformational new piece of education legislation is headed to Congress in the coming weeks. The Educational Choice for Children Act (ECCA) is a federal tax credit scholarship for K-12 students in every grade and school setting. It will cover 85-90% of K-12 students in every state as it is set with an income threshold of 300% of the median gross income by region. Keep reading to learn a little more about how it works and why it would be a big step towards effective education.
TOP THREE TAKEAWAYS FOR FAMILIES:
Where could my student use it?
The ECCA proposes including tuition, tutoring, education technology, on-line courses, curriculum, fees, homeschool expenses, or special needs services. Students attending public, private, magnet, charter, micro, on-line, or homeschools can all potentially benefit. And because ECCA uses private donations to fund scholarships, rather than public funds, there is protection from risk of government infringement of religious liberties.
Where would the money come from?
The ECCA scholarships are funded by private donations to non-profit scholarship granting organizations (SGOs) in the states. Donors receive a 100% non-refundable tax credit. The credits are $10 billion annually. Corporate donors may contribute 5% of their taxable income; individual donors may contribute up to 10% of their adjusted gross income. This also means that the scholarships do not add to federal spending or take away from funding already allocated to K-12 education.
Already have scholarships? They STACK!
In states with existing private school choice offerings, the ECCA scholarship can be stacked on top of the state offering, increasing purchasing power for parents and helping more students.
Anything that would make this bill better?
Since the vast majority of students already will be covered by the ECCA, it would cost very little to open up the program to all children, regardless of income. This would also reduce the administrative costs required to monitor the income of all participating families. Eliminating the connection between where a child lives and the school that they are assigned to would vastly improve the quality of life in low-income neighborhoods. No single policy could improve the lives of families in low-income neighborhoods as significantly as a non-means-tested version of the ECCA.
Although we fully support the ECCA legislation, we would love to see legislation that has no income threshold that could allow financially successful families to remain in low-income communities.
Celebrating Steps in Educational Freedom
The ECCA legislation represents a significant advancement toward expanding educational opportunities for K-12 students across the United States. As we look forward to the passage of this legislation, we continue to advocate for policies that promote access to quality education for all students. Together, we can build a brighter future for our children and communities.