(Just The News)—U.S. Sen. Ted Cruz on Tuesday introduced a federal Universal School Choice Act.
The proposal would allocate up to $10 billion annually in dollar-for-dollar federal tax credits for individuals and businesses nationwide that contribute to nonprofit scholarship-granting organizations for elementary and secondary education.
“School choice is the civil rights issue of the 21st century,” Cruz, R-Texas, said. “Every child in America deserves access to a quality education that meets their individual needs, regardless of race, ethnicity, income, or zip code. I remain committed to leading this fight until universal school choice has become available to every American, and I call upon my colleagues to expeditiously take up and advance this legislation.”
The bill would amend the Internal Revenue Code of 1986 to allow a tax credit for charitable donations to nonprofit organizations providing education scholarships to qualified elementary and secondary students for qualified expenses. The tax credit for individuals is 10% of adjusted gross income for a taxable year or $5,000, according to the bill language. For corporations, the tax credit is capped at 5% of taxable income for a taxable year, according to the bill language.
Qualified elementary or secondary education expenses include tuition and fees, curriculum and materials, books or instructional materials, online education materials, tutoring costs, test fees, fees for dual enrollment at higher education institutions, education therapies for disabled students, transportation costs, homeschooling expenses, among others.
The bill would go into effect in 2026, if it passes both chambers and is signed into law. It would allocate $10 billion for calendar year 2026 and each subsequent year. Money is allocated to states with 80% of the funds designated for families with incomes below the poverty line. Funds are allocated on a first-come, first-served basis.
Companion legislation was introduced by U.S. House Republican Reps. Burgess Owens of Utah and Byron Donalds of Florida.
The bill is the latest among several Cruz filed that prioritize education, savings and taxes.
In January, Cruz introduced the Student Empowerment Act to expand a tax-deferred education savings plan previously expanded under the first Trump administration, The Center Square reported. It amends the Internal Revenue Code of 1986 to permit kindergarten through grade 12 educational expenses to be paid from a 529 account. A 529 account is a tax-advantaged savings account originally created as a way to help parents save money to cover college expenses. It allows for tax-exempt withdrawals at the federal level and in some states for qualified education expenses.
“It was at the time and remains the most far-reaching federal school choice legislation ever passed,” according to Cruz’s office.
In April, he filed a bill to create Education Savings Accounts for the children of active-duty service members, The Center Square reported. It would amend the Elementary and Secondary Education Act of 1965 to allow parents of eligible military-dependent children to establish Military Education Savings Accounts.
Earlier this month, Cruz introduced the Universal Savings Account Act to allow American families to save without the restrictions and penalties associated with traditional tax-advantaged accounts. He also introduced a bill authorizing the use of taxpayer funds to be used to invest in savings accounts for U.S. children. This proposal was incorporated into the “big beautiful budget bill” that just passed the House Budget Committee.
In 2019, 2021 and 2023, Cruz also filed the Education Freedom Scholarships and Opportunity Act to create a federal tax credit for taxpayers who donate to scholarship organizations supporting post-secondary workforce education, including trade schools and apprenticeship programs and K-12 education.
The national effort coincides with a successful statewide effort led by Texas Gov. Greg Abbott, who earlier this month signed a bill into law creating Texas’ first Education Savings Account program, The Center Square reported.
After the Texas Senate previously passed a similar bill that went nowhere in the Texas House, Abbott helped elect new Republicans to the Texas House last year who followed through on their campaign pledge to vote for the bill. Texas’ new ESA program allocates $1 billion to fund $10,000 ESAs for roughly 100,000 students.
For Emergency Preparedness, Don’t Forget the Meds
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