House Republicans Propose $5 Billion-a-Year Private School Scholarship Plan

House Republicans unveiled a proposal Monday to allocate up to $5 billion annually for scholarships to help families send their children to private and religious schools — a sweeping effort to redirect public funds toward private education, The Associated Press reports.

The plan, part of a budget reconciliation bill, would represent a major step toward President Donald Trump’s goal of “universal school choice.” The proposed tax-credit scholarship program would make nearly all families eligible, excluding only those earning more than three times the local median income.

Supporters of the plan argue it would expand educational options for families, particularly those assigned to underperforming public schools.

“Giving parents the ability to choose the best education for their child makes the American Dream possible,” said Sen. Bill Cassidy, R-La., who introduced a similar measure in the Senate.

The scholarships would be funded through donations of cash or stock. In return, donors would receive a full credit on their federal tax bill — a mechanism critics say effectively creates a tax shelter. Donors could avoid paying taxes they would otherwise owe on appreciated stock if they donated it through the program.

The proposal comes amid broader efforts by Republican-led states to expand private school voucher programs. Texas recently approved a $1 billion plan, and similar efforts have taken hold across other red-leaning states.

Critics say the program would benefit wealthy families and donors at the expense of the public education system, which still serves the vast majority of U.S. students. They argue such programs divert essential resources from public schools, leading to lower enrollment and reduced per-pupil funding.

“This is a significant threat,” said Sasha Pudelski of AASA, the School Superintendents Association. She warned that states with existing voucher programs often end up subsidizing families who were already paying for private education. “It’s opening the door even wider to what has already plagued voucher programs around the country, which is rampant waste, fraud, and abuse,” Pudelski said.