On Monday, June 16th the Senate Finance Committee released their portion of the “One Big Beautiful Bill Act” making changes what the House of Representatives passed on May 22nd regarding ECCA. The full Senate is expected to vote on the bill around July 4th and further changes could be made before the full Senate votes and when the bill goes for final negotiations with members of the Senate, House and the White House.
What provisions are in the Senate Finance recommendations about ECCA?
• ECCA is a $4 Billion annual, 100% federal tax credit program for contributions to an eligible scholarship granting organization for individual tax filers. There are no corporate donations allowed in the Senate Finance recommendations.
• The Senate Finance committee changed the program to make it permanent.
• Individuals would receive a dollar-for-dollar tax break of up to $5,000 or 10% of the adjusted gross income of the donor, whichever is greater, for donations to scholarship granting organizations that would provide scholarships to families.
• Student eligibility will be up to 300% of regional median gross family income.
• The Senate Finance Committee eliminated the “poison pill” language from the House that would have required every private school to either provide all services for a student’s IEP or give up eligibility to have any of its students participate in the program.
• In the Senate Finance Committee, the program begins in calendar year 2027, not 2026.
• Senate Finance added religious liberty protections.
Provisions that we are advocating be changed before final passage:
• Return the program back to the $5 Billion cap as it was in the House version.
• Allow for corporation donations.
• Move the start date to 2026 from 2027.
• Allow for an escalator clause if all scholarships are utilized.
• Retain the provision that makes the program permanent.
Timeline projections:
• The Senate is expected to pass the Senate by July 4th
• The House, Senate and White House will reconcile differences between the two chambers for final passage.
• The Department of Treasury would then have to write administrative rules.
You can easily contact your State Senators HERE to ask them to support the Education Choice for Children Act.