What This Bill Does
This bill would repeal the federal tax credit for individuals who contribute to scholarship-granting organizations. In practical terms, it would remove a tax incentive that currently encourages private donations to groups that help fund scholarships, especially for students and families seeking alternatives to traditional school financing. The change would affect taxpayers who use the credit, scholarship-granting organizations that rely on those donations, and students who receive scholarships supported by the program.
- Repeals the federal tax credit for contributions to scholarship-granting organizations.
- Affects individual donors who currently receive a tax break for these contributions.
- Could reduce the incentive to give to scholarship funds supported by private donations.
- May lower the amount of scholarship aid available through affected organizations.
Who This Bill Affects
If you contribute to a scholarship-granting organization, this bill would remove the federal tax credit tied to that donation, increasing your after-tax cost of giving. If you or your family rely on scholarships funded through these organizations, the bill could reduce the pool of donated money available for awards, which may make some scholarships harder to obtain or smaller in size.
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- Tax policy reform advocates They may argue the credit is a targeted tax expenditure that narrows the tax base and complicates the code. Repealing it would simplify federal tax policy and reduce government involvement in directing charitable giving.
- Public school advocates They may contend the credit channels public support toward private scholarship structures instead of broadly available education funding. Repeal would stop the federal government from subsidizing a specific education pathway.
- Budget hawks They may see the credit as foregone revenue that should be eliminated to reduce federal tax expenditures. From this view, the government should not use the tax code to encourage a narrow category of donations.
- Families seeking scholarship aid They may argue the credit helps generate donations that translate into real scholarship dollars. Repeal could shrink aid opportunities for students who depend on outside support to pay education costs.
- Scholarship-granting organizations They may say the credit is an important incentive that motivates private donors to contribute. Without it, fundraising could weaken and fewer scholarships may be available.
- Individual donors They may oppose losing a tax benefit tied to charitable giving. The repeal would make donations more expensive after taxes and could discourage contributions to education-focused charities.
Key Implications
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““repeal the tax credit for contributions of individuals””
This would eliminate the federal tax incentive that currently lowers the cost of donating to qualifying scholarship organizations. Donors would no longer receive that specific credit when they give.
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““scholarship granting organizations””
These organizations could face reduced donation levels if the tax incentive disappears. That can affect how much scholarship aid they are able to distribute to students.
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““and for other purposes””
This phrase signals that the bill may include related conforming or technical tax changes. In practice, that often means additional adjustments to keep the tax code internally consistent after the main repeal.
Latest Status
June 11, 2026
Referred to the House Committee on Ways and Means.
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Ask AI about this billData sourced from api.congress.gov.