Unpacking the Federal Scholarship Tax Credit

·17 min·1 clip

At a Rome conference, John Schilling and Lauren May explain the new federal scholarship tax credit that could change education funding.

The episode begins with host Brian Ledke introducing the show from the International School Choice and Reform Conference in Rome. Guests John Schilling and Lauren May share their backgrounds in the school choice movement. John Schilling is a federal lobbyist who has worked on the bill for eight years, while Lauren May is vice president of the federal scholarship tax credit at Step Up for Students in Florida. They describe the Education Choice for Children Act as a federal scholarship tax credit passed through reconciliation, allowing it to avoid the Senate's 60-vote threshold. The bill is permanent and uncapped, with taxpayers able to contribute up to $1,700 to scholarship granting organizations. States must opt in for families to participate, though taxpayers can donate to organizations in other states if their own does not opt in. Lauren May explains how taxpayers can use paycheck withholdings to fund donations without upfront cash. The guests clarify that scholarships can be used by students in both public and private schools for expenses like tutoring, instruments, or sports fees. They emphasize that the program adds money to the K-12 system and does not reduce public school funding. John Schilling addresses misconceptions, such as claims by opponents like Randy Weingarten that it privatizes education. He notes the potential to raise $50 billion if many taxpayers participate. Eligibility is based on income up to 300% of the median area income, covering about 90% of K-12 students. EdChoice has created a map tool to help families check eligibility by zip code. The guests urge listeners to contact their governors to opt in and start planning donations for 2027. They highlight the bill's role in expanding school choice momentum, with over 30 states having private school choice programs. The episode concludes with a call to action for taxpayers to consider donating and spreading awareness.

As heard by us

A clear, practical look at how scholarship tax credits could connect tax decisions to education options.

Federal scholarship tax credits may sound like narrow tax policy, but EdChoice Chats keeps the focus on what the money could actually support: tutoring, extracurricular activities, band instruments, and family decisions about where a donation is directed.

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Why you'd press play

You will hear how a $1,700 tax donation could turn into scholarship dollars for a student's tutoring, extracurriculars, or even a band instrument.

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