The SCHOOL Act of 2025 (HR 2275) changes how federal education funds flow by requiring states to allocate funds based on where students attend school, rather than where the school district is located. It directly affects children aged 5-17 (and students with disabilities under IDEA) enrolled in public, private, or home schools by allowing states to distribute funds through education savings accounts for eligible families. Key provisions include using federal funds for tuition, materials, therapies, and other educational expenses at the family's chosen school, while ensuring funds supplement - rather than replace - existing local resources. The bill explicitly prohibits federal control over private schools and maintains eligibility for programs like free school meals.
This bill changes how federal education funds are distributed by directing funds to follow eligible low-income students (ages 5-17 from families below poverty level) to their families or schools. It allows states to use these funds for qualified expenses like public school tuition, private school tuition at approved schools, or supplemental programs. The bill explicitly prohibits federal officials from mandating specific curricula, assessments, or standards - such as Common Core - requiring states to maintain control over education content. It also repeals existing federal assessment grants, shifting focus to student-centered funding.
This bill creates a 75% federal tax credit for individuals donating cash or securities to approved nonprofit charter school organizations. The credit is limited to 10% of adjusted gross income or $5,000 annually, and applies only to organizations meeting strict criteria (like 501(c)(3) status, performance-based state selection, and annual audits). It requires these organizations to spend 100% of donations on charter school creation/expansion within five years and caps total annual tax credits at $5 billion, allocated by state. The credit is designed to incentivize private funding for charter schools while ensuring accountability through spending rules and oversight.
The Student Empowerment Act (S 152) expands the use of 529 education savings accounts to cover more K-12 school expenses for students in public, private, religious, or homeschool settings. It allows funds to pay for tuition, curriculum materials, books, online resources, licensed tutoring (with teacher credentials), standardized tests, dual enrollment fees, and licensed educational therapies for students with disabilities. The bill directly affects families using 529 accounts who educate children in elementary or secondary school, including homeschoolers. It changes existing tax rules to include these specific K-12 expenses under 529 account distributions, effective after the bill's enactment. The policy change aims to provide greater flexibility for families managing educational costs at the K-12 level.
This bill establishes tax credits for individuals and corporations who contribute to scholarship granting organizations that provide educational scholarships for eligible students. The individual tax credit is limited to 10% of adjusted gross income or $5,000, while corporate credits are capped at 5% of taxable income. The bill defines "eligible students" as those from households with income not exceeding 300% of the area median gross income, and specifies that scholarships can cover tuition, materials, tutoring, and educational therapies. The bill includes a $10 billion annual cap on tax credits, with a first-come, first-served allocation system, and requires scholarship organizations to meet specific financial and operational standards.
The FLEX Act amends the Elementary and Secondary Education Act to increase funding for high-quality charter schools. It raises required funding reserves for program expansion (from 12.5% to 15% and 22.5% to 25%) and mandates at least 30% of funds be reserved for charter school facilities, national activities, and program support. The bill explicitly allows funding for "addition or expansion of programs" at existing charter schools (e.g., new academic programs or personalized learning) and permits single-sex educational services. It also clarifies that funds can cover facility operations, renovations, and student transportation needs. This directly affects charter schools, state education entities administering grants, and charter management organizations receiving federal support.
The Strength in Diversity Act of 2025 provides federal grants to schools and districts with racial or socioeconomic isolation to develop and implement strategies increasing diversity. It authorizes planning grants (up to 2 years) for assessments and community engagement, and implementation grants (up to 3 years) for activities like transportation plans, teacher recruitment, innovative school assignments, and equitable enrollment systems. Recipients must track measurable progress on academic outcomes (e.g., graduation rates, achievement gaps) and diversity metrics, including reducing isolation in covered schools (public K-12 schools and publicly-funded early childhood programs). The bill requires robust community input, data-driven evaluation, and plans for sustainability beyond the grant period, with funding authorized for fiscal years 2025-2029.
HR 833 creates a federal tax credit for individuals and corporations that contribute to scholarship granting organizations (SGOs) providing scholarships for elementary and secondary education. The credit allows taxpayers to deduct up to 10% of their adjusted gross income or $5,000 (whichever is less) for contributions to SGOs serving students from households with income up to 300% of the area median income. The bill establishes a $10 billion annual cap on the tax credit program, requires SGOs to verify student eligibility and maintain separate accounts, and prohibits government control over SGOs or private schools. It ensures scholarships can be used at public, private, or religious schools without discrimination based on religious character. The tax credit would be available for contributions made after December 31, 2025, with annual volume cap increases based on usage.
HRES 63 is a symbolic resolution designating the week of January 26-February 1, 2025, as "National School Choice Week." It expresses the House's support for raising public awareness about educational options - including public schools, charter schools, private schools, online academies, and homeschooling - and encourages parents to explore these choices. The resolution also urges the public to host events during this week to celebrate parental choice in education. As a non-binding resolution, it does not create new policies or alter existing laws.
The A PLUS Act (S 309) allows states to consolidate federal education funds for eligible programs into a single, flexible funding stream, reducing administrative complexity and enabling states to manage resources more efficiently to improve student achievement. States must submit a "declaration of intent" detailing which programs they will consolidate (excluding special education funds), commit to public accountability through annual reports on student progress, and ensure federal funds supplement - rather than replace - state education funding. The bill limits administrative costs to 1% of consolidated federal funds (3% if excluding Title I funds) and requires states to report how funds address achievement gaps for disadvantaged students. This directly affects states and local school districts that adopt the declaration, shifting how they administer and report on federal education dollars.
