House and Senate Reach School Choice Agreement in “Magic Amendment”

Today, April 16, is a momentous day for the school choice movement in South Carolina.

After weeks of negotiations between leaders in the House and Senate, we have now finally seen the resulting amendment on S.62, the bill to restore South Carolina’s ESA program—the Education Scholarship Trust Fund. The “magic amendment” was presented today in the Senate by Education Chairman Greg Hembree (pictured above with ESTF families and House Education Chairlady Shannon Erickson back in December) and adopted by a 29-13 vote.

Here’s what you need to know about the amended S.62:

• ESA scholarship values will be increased, from $6,000 in current law to $7,500, with annual adjustments for inflation.
• The program will be income-limited in 2025-26 to 300% of the federal poverty line ($96,450 for a family of 4). In 2026-27 and all years after, eligibility will go to 500% of the federal poverty line ($160,750 for a family of 4)—that is 85% of South Carolina K-12 students!
• There will be 10,000 scholarships available for 2025-26, and then in every year after that, there must be at least 15,000 scholarships. The General Assembly can adjust the number of scholarships above 15,000 based on demand.
• There is NO prior public school attendance requirement as in the original ESTF law.
• There are four priority groups that will have first dibs at scholarship spots, following the renewal of previous year’s recipients: siblings of current ESTF students, children of active duty military, households at or below 300% FPL, and students who attended public school during the previous school year.
• The scholarship funding source can be determined annually in the budget by the General Assembly, so the legislature has discretion on whether funding comes from the general fund or lottery revenue. This gives the legislature flexibility to respond to any potential court challenges.
• These will be a true trust fund, managed by a Superintendent-appointed trustee. Funds clearly cease to be public funds upon transmission to the trustee. This setup follows the model set out in Justice John Kittredge’s dissent in the Eidson case.
• The “wellness check” provision from S.39 (2023) remains removed.
• Language is included to provide for interdistrict transfer (aka “open enrollment”) for ESTF students in every school district, fees for which can be covered with ESTF.
• The rights of independent schools are clearly protected in the law.

We could not be more encouraged by the Senate taking this step. By setting income limits at 500% FPL, the legislation makes roughly 85% of school aged South Carolinians eligible, putting this as a near-universal program. Further, by allowing the General Assembly to increase the number of scholarships past 15,000 based on demand, the legislation sets the path forward for a robust ESA program. We are confident in the legal standing of this program with the trustee component and with the legislature’s ability to shift the funding source should the need arise.

Palmetto Promise is hopeful that the Senate will quickly approve S.62 as amended and send it back to the House for concurrence, so the bill can be signed into law by Governor McMaster in the coming weeks. All the hard work and prayers since the Eidson decision that left ESTF students with cancelled scholarships in the middle of the school year have paid off. The result is a robust, near-universal ESA program with room to grow as interest in the program increases.

Thank you to the 29 South Carolina Senators who voted in favor of this robust amendment to expand school choice: Brian Adams, Thomas Alexander, Sean Bennett, Allen Blackmon, Chip Campsen, Richard Cash, JD Chaplin, Wes Climer, Tom Corbin, Ronnie Cromer, Tom Davis, Jason Elliott, Michael Gambrell, Billy Garrett, Larry Grooms, Michael Johnson, Carlisle Kennedy, Josh Kimbrell, Matt Leber, Roger Nutt, Harvey Peeler, Luke Rankin, Mike Reichenbach, Rex Rice, Everett Stubbs, Ross Turner, Danny Verdin, Tom Young, and Jeff Zell.

We anticipate that applications for the program will reopen in the coming weeks once the bill is signed into law, so if you are a South Carolina household within 300% of the federal poverty line who wants to use this education scholarship for your children, you should sign up for our email list at the bottom of the page on SCSCHOOLCHOICE.COM to be notified about application details as soon as they are available.

Compare the details of school choice bills in Tennessee and Texas with the three versions of S.62: