It is a well-established fact that the school choice movement was created in the South in the 1950s to protect segregation. After the Brown decision of 1954, whites resisted desegregation with e Rey strategy they could dream of. One such was to offer vouchers to every student to attend the school of their choice. The predictable result was to protect segregated schools.

In this century, voucher promoters sell them as parental choice, “saving poor kids from failing public schools,” etc.

But unless an effort is made to enrcuage racial integration, choice will lead to segregation.

Halley Potter of The Century Foundation wrote this report. I urge you to open the link and read it in full.

Potter wrote:

In rural Northampton, North Carolina, a private Christian school called Northeast Academy is 99 percent White in a county that’s 40 percent White. It receives about half of its tuition from taxpayers, through the state’s private school voucher program. Northeast is one of a number of private schools known as “segregation academies,” because they were founded during desegregation so that White parents could avoid having their children educated in an integrated setting.

Segregation academies ought to be a thing of the past, but they could experience a resurgence—paid for with taxpayer dollars—under the new federal private school voucher scheme enacted as part of the One Big Beautiful Bill Act (OBBA). Bringing back segregation academies using taxpayer dollars is part of the Trump administration’s radical two-pronged approach to undermine public education. The first tactic in the Trump administration’s plan to undercut public school systems is to dramatically reduce the federal role in education by dismantling federal programs, reducing oversight, attempting to cut federal funding for K–12 schools, and working to close the U.S. Department of Education. The second tactic is actively working toward privatization through an unprecedented federal private school voucher program.

How the Voucher Plan Would Work . . .

In July 2025, OBBA established a new federal tax credit—known as the Education Freedom Tax Credit—that, in effect, serves as a private school voucher program. The program allows individuals, beginning January 1, 2027, to contribute up to $1,700 per year toward private entities known as scholarship granting organizations (SGOs) and receive a dollar-for-dollar return of their money in the form of a federal tax credit. SGOs then would then be able to decide how to distribute the funds as scholarships to applicant students for them to spend on education. There is no cap on the size of such scholarships, and no limit on the number of individuals that can claim the tax credit. While recipient students may be able to use scholarship funds to pay for some things like tutoring or activity fees at public schools, because public schools are essentially free, it is anticipated that the vast majority of these funds will go toward private school enrollment.

There are very few requirements of SGOs in the statute, and it appears that any organization in a participating state that meets the criteria will be allowed to participate. SGOs must give scholarships to ten or more students who do not all attend the same school, must spend at least 90 percent of the income on scholarships, must give priority to students who received scholarships the previous year and to siblings, cannot earmark funds for a particular student, and must ensure that students come from families earning no more than 300 percent of the area median gross income. Essentially everything else will likely be up to the SGO, as the program’s regulations are not expected to add additional guardrails. It appears an SGO could, for example, be set up to fund scholarships to Christian schools only. Because private schools are not subject to all of the same civil rights laws as public schools, SGOs could also likely discriminate against students based on disability or sexual orientation.

While starting the process with individual donations gives the program the veneer of a charity operation, this is a ruse. All this does is mask who is truly bearing the cost of the program. In actuality, the donors to SGOs bear no cost, as they are later fully reimbursed by the federal government through the dollar-for-dollar tax credit. The federal government—using taxpayer dollars sent to the supposed donors—bears the entire cost of the program. Estimates of the cost to taxpayers range from around $4 billion to over $50 billion annually.

Moreover, the U.S. Department of the Treasury’s language regarding the tax credit program is very misleading. Their fact sheet states: “A recent report estimates that the Education Freedom Tax Credit will generate an additional $24 billion in education funding annually.” That makes it sound like this is a revenue-creating program rather than one that bears a huge federal cost.

States and the District of Columbia have to decide annually whether or not to opt out of or into the voucher program. As of July 6, 2026, twenty-nine states had indicated that they plan to opt in for the first year of the program. However, federal regulations guiding the program are not expected until September. Further complicating matters, at least eighteen states will have new governors and the District of Columbia will have a new mayor when the program launches in 2027 because of term limits, and that number could be as high as thirty-six after this fall’s elections.

. . . To Increase Segregation and Undermine Public Education

One of the dangers of private school voucher programs—alongside their well-demonstrated negative effects on students’ academic outcomes, civil rights violations, and destabilization of public school funding—is that they can exacerbate racial and socioeconomic segregation.

Diverse learning environments that bring students of different racial and socioeconomic backgrounds together are one of the most powerful educational tools we have. Integrated schools help encourage critical thinking, boost academic achievement, and build the skills for working across lines of difference that are essential for our democracy. The growth of private school voucher programs threatens to roll back progress on integration, limit educational opportunity, and further fracture the educational landscape by race and class.

As state leaders and advocates weigh whether or not to opt into the federal voucher program, they should consider the evidence on how the program could deepen inequality and further racial and socioeconomic divides. New analysis in this piece shows that in some metro areas in states that are still deciding whether to opt out of or into the federal voucher program, private schools already drive more than 40 percent of the racial segregation in schools.

The Segregationist History of Private School Vouchers

Private school enrollment nationwide is disproportionately White and wealthy. As of 2021, 9 percent of American schoolchildren attended private schools. Sixty-five percent of private school students are White, compared to 45 percent of public school students. Private school students are about twice as likely as public school students to come from higher-income households, and private school attendance is concentrated among the highest earners.

Private school voucher programs were started by segregationists across the South in the 1950s and 1960s as part of efforts by Southern leaders engaged in “massive resistance” to avoid integrating their schools in the wake of the 1954 Brown v. Board of Education ruling. Many communities opened all-White private schools, which became known as segregation academies. Local governments slashed public school funding and instead created public subsidies for these private schools—including voucher programs to reimburse tuition as well as tax credits.

The courts eventually struck down many of those voucher programs tied to segregation academies, but current voucher programs still show troubling patterns of segregation. Roughly 300 private schoolsthat were founded as segregation academies still receive money from publicly funded voucher programs. Most voucher money goes to students who are already attending private schools, and data has shown that private schools tend to raise their tuition after the introduction of voucher programs. For example, when Iowa started a new voucher program in 2023–24, two-thirds of vouchers went to students who were already attending private schools. By 2026, tuition at some of the state’s largest private high schools had grown by as much as 50 percent. It is important to note that vouchers typically do not cover the full cost of tuition, making private schools still out of reach for most low-income families, and so the voucher programs tend to function mostly as cost-reducing schemes for wealthier families sending their children to private schools. In Arizona, for example, half of all voucher recipients come from the wealthiest quartile of zip codes.

There are some private school voucher programs that target low- to middle-income students and enroll mostly students of color, such as the Milwaukee Parental Choice Program, the oldest operating school voucher program in the United States. However, research shows that even students in these programs, which arguably have the highest potential for integration, by and large did not give students greater access to integrated schools.

Furthermore, some voucher programs that started out serving mostly students of color have now seen an increase in White students in recent years. When North Carolina’s private school voucher program launched in 2014, for example, a majority of students receiving vouchers were Black, and just 27 percent were White; however, as the program expanded incrementally from one serving only low-income students to one with no income limits, the percentage of vouchers going to White students grew to 73 percent, in a state where only 51 percent of school-aged children are White. A 2024 investigation by ProPublica into North Carolina’s private school voucher program found thirty-nine schools that fit the profile of segregation academies that were receiving public money through voucher programs.

The new federal private school voucher program specifies that participation is open to families earning up to 300 percent of area median gross income, which means it would be open to roughly 90 percent of students nationwide. With near universal eligibility, the federal program could easily be susceptible to similar patterns of segregation, disproportionately benefiting White students and furthering segregation between public and private schools.