How School Choice Became Big, Beautiful Tax Loophole

Abby McCloskey, Bloomberg, July 3, 2025

“An obscure provision in the budget reconciliation bill just passed by the Senate could expand access to private school education but make DOGE — if it had feelings — cry at its inefficiency.

The policy would allow donors who give to an eligible scholarship-granting organization to be reimbursed dollar-for-dollar in the form of a tax credit up to $1,700 (down from $5,000 in earlier drafts). Families making up to three times the average income would be eligible for these scholarships, which is to say, most families with school-age children.

For the many kids who are stuck in subpar schools, any additional money could be a lifeline. As I’ve written before, school choice is associated with improved student outcomes, including better test scores and retention. Studies also suggest such competition increases the performance of nearby public schools.

For the naysayers who worry that school choice — whether in the form of charter schools, magnet schools or vouchers — will worsen public education, one needs only to look at the 2025 NAEP test scores. Most kids cannot read or do math at grade level. Change is needed. Parents understand this. Ask any mom if she’d want the financial freedom to choose the right school for her kid.”