Federal School Choice at a Crossroads: What the Senate Must Do Next
In May 2025, the U.S. House of Representatives passed President Trump’s “One Big Beautiful Bill,” a sweeping policy package that includes the Educational Choice for Children Act (ECCA), a $5 billion annual tax credit scholarship program that could significantly expand educational freedom for families across the country.
This legislation, long championed by parents and advocates of school choice, would allow individuals and (in earlier versions) corporate donors to receive a federal tax credit for contributions made to non-profit Scholarship Granting Organizations (SGOs), which in turn provide scholarships for K–12 students. These scholarships could be used for tuition, tutoring, homeschool curriculum, and other qualifying educational expenses.
But what happens next is critical.
As the Senate prepares to negotiate the final version of the reconciliation bill, it is essential that they not only preserve the ECCA—but improve it.
To ensure the program is viable, scalable, and truly impactful in every state, we strongly urge the Senate to adopt the stronger framework laid out in the Senate ECCA, sponsored by Senator Bill Cassidy and 33 bipartisan co-sponsors. That means making several key changes to the House-passed version.
Four Essential Improvements for the Senate ECCA
1. Remove the unfunded admissions mandate
The House version includes a provision requiring participating private schools to admit students with Individualized Education Plans (IEPs) without providing any funding to support those mandates. This language is not only unworkable for most schools, especially smaller faith-based ones; it threatens to discourage private school participation altogether. Removing this requirement would expand opportunities for all students, including those with special needs, by allowing SGOs the flexibility to award higher scholarship amounts when needed.
2. Extend the program—and double its reach
The House version of the ECCA would sunset after just four years and cap funding at $5 billion annually. The Senate should extend the program’s duration and increase the cap to $10 billion annually, as proposed in the Cassidy bill. A longer runway and higher ceiling would give SGOs, families, and schools the confidence to plan for the future and scale participation accordingly.
3. Restore eligibility for corporate donors
Corporate giving was allowed in earlier versions of the ECCA but stripped from the current House bill. Reinstating corporate donor eligibility is essential to broadening the scholarship base and ensuring the program reaches as many students as possible, especially in states where large-scale donations could make a significant impact.
4. Preserve religious liberty and school autonomy
The House bill contains critical protections that ensure participating families, SGOs, and schools are not forced to compromise their faith or mission. These provisions must be preserved in the final Senate version to guarantee broad participation and uphold the First Amendment rights of all involved.
Why It Matters for South Carolina and the Nation
Here in South Carolina, we’ve seen firsthand what school choice can mean for families. Our Education Scholarship Trust Fund (ESTF) program—spearheaded by Palmetto Promise Institute and launched in 2024—has already helped thousands of students access better educational opportunities. But demand far exceeds supply. A federal program like the ECCA, layered on top of our state efforts, could open doors for even more children, especially in underserved communities. It would also give children in every state, including those with no other school choice options, an opportunity for a better life.
Critically, the ECCA would not override state programs; it would enhance them. And it would send a strong national signal: that parents, not ZIP codes, should determine a child’s educational path.
The Bottom Line
The House took a bold first step by passing ECCA as part of the budget package. Now the Senate must finish the job, and get it right. With strategic improvements to expand funding, protect school autonomy, and ensure workability for private school partners, the ECCA could become a transformational victory for educational freedom across the United States.
We urge Congress to act—and we stand ready to help families in South Carolina and beyond take full advantage of this opportunity when it becomes law.
