H.R.833 - Educational Choice for Children Act of 2025 (119th Congress)
Summary
H.R.833, the "Educational Choice for Children Act of 2025," proposes amendments to the Internal Revenue Code of 1986, introducing tax credits for charitable donations to non-profit organizations that provide education scholarships for eligible elementary and secondary students. These credits are available to both individuals and corporations, subject to certain limitations and a volume cap. The bill also includes provisions to prevent double benefits and ensure proper distribution of funds by scholarship granting organizations.
Expected Effects
The bill aims to expand educational opportunities by incentivizing charitable giving towards scholarships for students in need. It introduces a new framework for tax credits related to educational expenses and establishes guidelines for scholarship granting organizations. The volume cap and allocation mechanisms will likely influence the scale and distribution of these benefits across different states.
Potential Benefits
- Increased educational opportunities for eligible students from lower-income households.
- Incentivizes charitable giving towards education.
- Provides tax relief for individuals and corporations contributing to scholarship funds.
- Promotes competition and innovation in the education sector.
- Empowers parents to choose the best educational options for their children.
Potential Disadvantages
- Potential strain on public school funding as more students opt for private education.
- Complexity in administering and tracking the volume cap and tax credits.
- Risk of fraud or mismanagement by scholarship granting organizations.
- Possible inequities in access to scholarships based on geographic location or other factors.
- May disproportionately benefit higher-income individuals who can afford to make larger charitable contributions.
Constitutional Alignment
The bill's alignment with the U.S. Constitution is complex. While it doesn't directly violate any specific constitutional provision, its impact on the Establishment Clause of the First Amendment could be debated, as it indirectly supports religious schools through scholarships. The bill also touches upon the concept of equal opportunity, potentially aligning with the Fourteenth Amendment's Equal Protection Clause, though this is subject to interpretation based on how the program is implemented and its effects on different groups.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).