Peter Greene wrote in Forbes about a Democrat-led effort to eliminate the federal voucher program from Trump’s “One Big Ugly Bill,” the one that takes from the poor and gives to the richest. Senator Mark Kelly of Arizona led the opposition to this program. Kelly knows how vouchers have harmed the state budget and public schools in Arizona.
One portion of the President Donald Trump’s “One Big Beautiful Bill” was a federal school voucher program that any state could join. But before that plan can go into effect, a new Senate bill has been proposed that would undo the vouchers entirely.
Senators Mark Kelly (D-AZ), Mazie Hirono (D-HI) and an additional 28 senators have introduced the Keep Public Funds in Public Schools Act. The act would strike IRS Code Section 25, the portion of the IRS code that was inserted to create the federal school voucher program, eliminating that program.
The new voucher program was sold as a tax credit program. It would allow taxpayers to claim a $1,700 tax credit by diverting that payment from the IRS to a scholarship granting organization that would then award at least $1,530 of that donation to a student (the rules governing the program allow SGOs to keep 10% of the donated funds).
Kelly cites his home state of Arizona as a cautionary tale, where taxpayer-funded school vouchers have become costly: “Since 2022, our state’s universal voucher program has diverted and drained money from public schools; last year alone cost Arizona taxpayers nearly $1 billion. Instead of investing in classrooms, special education services, or school safety, lawmakers pushed massive tax giveaways and created a parallel education system that lacks transparency and accountability.”
12News and reporter Craig Harris have run a series of reports showing much of that money has gone to questionable and disallowed purposes, including dirt bikes, custom tires and luxury hotel stays. Choice advocates such as EdChoice have pushed back, but have had difficulty debunking Harris’s results.
“In Arizona, we’ve already seen how universal vouchers are leading to rampant fraud and benefiting people who already had the means to send their kids to private school, while decimating public education for everyone else,” said Kelly.
On X, Secretary of Education Lindas McMahon noted that Kelly surely knows “the Education Freedom Tax Credit does not take a single dollar away from public schools — it brings new, private money into education.”
When Kentucky’s similarly-structured tax credit scholarship program was challenged in court, the state made a similar argument that the program did not use any public taxpayer funds. But when the Kentucky Supreme Court ruled against the program, they rejected that argument. “The money at issue cannot be characterized as simply private funds,” they wrote, “rather it represents the tax liability that the taxpayer would otherwise owe.”
When it comes to granting tax credits, the federal government has one power that states do not. Most states require a balanced budget; the state needs to find a way to cover the money it lost by offering credits rather than collecting on the tax liability. The federal government can just add the uncollected taxes to its deficit tab.
Kelly noted in an interview, “It is a deficit bomb, this federal program.”
The Joint Committee on Taxation, a nonpartisan entity that assists Congress on tax legislation, estimated that the credit could cost $25.9 billion between 2025 and 2034 or around $3 billion to $4 billion a year. That would mean potential income of $300-$400 million for SGOs; several organizations are preparing to launch national SGOs to work with the federal voucher program.
In addition to Kelly and Hirono, the Keep Public Funds in Public Schools Act is cosponsored by Senators Michael Bennet (D-CO), Richard Blumenthal (D-CT), Cory Booker (D-NJ), Lisa Blunt Rochester (D-DE), Chris Coons (D-DE), Tammy Duckworth (D-IL), Dick Durbin (D-IL), John Fetterman (D-PA), Kirsten Gillibrand (D-NY), Martin Heinrich (D-NM), Tim Kaine (D-VA), Andy Kim (D-NJ), Angus King (I-ME), Ben Ray Luján (D-NM), Ed Markey (D-MA), Jeff Merkley (D-OR), Chris Murphy (D-CT), Alex Padilla (D-CA), Jack Reed (D-RI), Bernie Sanders (I-VT), Adam Schiff (D-CA), Chuck Schumer (D-NY), Jeanne Shaheen (D-NH), Tina Smith (D-MN), Chris Van Hollen (D-MD), Elizabeth Warren (D-MA), Peter Welch (D-VT), and Ron Wyden (D-OR).
Diane Ravitch's blog 
I just sent a email to my reps in CA expressing my support for this.
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Vouchers allow public schools to be the host to an array of ill conceived, parasitic voucher schools and schemes associated with them. As in nature too many parasites will eventually kill the host. Vouchers deliberately jeopardize the strength and well-being of the public schools that most students depend on. With their continuous economic drain, vouchers may make public schools collapse under the strain of the economic loss. Vouchers have little academic value, and they are a political instrument designed to destabilize public schools. Thank you, Mark Kelly, for your efforts on behalf of the nation’s public school students.
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RT,
That’s the goal of vouchers: to demolish public schools.
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On this evening’s news it was reported that in neighboring Escambia County, most of the students that took the vouchers this year never left or have returned to the district’s public schools, although the district is not receiving any funding for them. State senators are trying to get the state to reimburse the district for their losses. It should be interesting to see how this turns out.https://weartv.com/news/local/escambia-county-school-board-to-vote-on-letter-seeking-repayment-for-335-voucher-students
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