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.