The ECCA, which is also referred to as the Educational Choice for Children Act (ECCA) of 2025, is a bill that establishes a Educational Choice for Children Act (ECCA) for individuals who give charitable contributions to nonprofit organizations that provide education scholarships to qualified elementary and secondary students.
ECCA Significant Importance
Taxpayers
The bill essentially creates an incentive for contributions to SGOs like the Children’s Tuition Fund by providing tax credits for those contributions. This allows taxpayers to support educational choice while potentially reducing their tax burden.
Schools
By providing students with greater access to tuition funding, the tax credit scholarship could increase enrollment for schools, especially private and charter institutions. It also encourages more competition among schools, and potentially leads to better educational outcomes.
Students and Parents
ECCA seeks to increase access to alternative educational options. In essence, families will be able to choose the best educational arrangement for their children, whether it be a private school or a specialized learning environment, ultimately offering more flexibility in how education is delivered.
Overview of ECCA
Summary of the Bill
The Educational Choice for Children Act introduces a Educational Choice for Children Act (ECCA) designed to encourage contributions to nonprofit organizations that fund education scholarships. These scholarships aim to provide qualified elementary and secondary school students with financial assistance for tuition and other education-related expenses.
The main provisions and scope of the ECCA are as follows:
Tax Credit for Contributions
Individuals can claim a nonrefundable federal income tax credit for donating to scholarship-granting organizations.
Eligibility Criteria for Scholarships
Scholarships are reserved for students from households with incomes up to 300% of the area median gross income see HUD website. Priority is given to students previously awarded scholarships and their siblings.
Qualified Expenses
Funds can be used for tuition at private or religious schools, curriculum materials, standardized test fees, educational therapies for students with disabilities, and even homeschool-related costs.
Oversight and Accountability
Scholarship-granting organizations must meet strict requirements, including independent audits, income verification of recipients, and compliance with anti-fraud measures.
Leveraging tax incentives to promote educational opportunities outside of the public school system. It should also be emphasized that the tax credit scholarship serves as a mechanism to fund education for median families.
Promoting school choice
The Educational Choice for Children Act of 2025 is recognized as the first nationwide school choice bill that passed the U.S. House Committee on Ways and Means. It won the committee’s favor on September 11, with a vote of 23-16.
Eligibility for Scholarships
Income Thresholds and Criteria
Eligible students or those qualified for the scholarships must:
Belong to a family with a median income level for their area not exceeding 300% of the area median gross income,
based on the guidelines under Section 42; and
Be eligible to enroll in a public elementary or secondary school
For example: if the typical median income for your area is $50,000, families earning $150,000 or less may qualify.
Calculate Eligibility
Click Here: HUD Income Limits
Select your State and then your County and click “View County Calculations”
Take amount listed under the section Median Family Income and multiply by 300%
Coverage for Educational Expenses
Below are the salient points regarding what is considered as “qualified elementary or secondary education expense” under the bill.
Tuition for both public and private schools
Fees associated with nationally standardized tests, Advanced Placement exams, and college or university entrance exams
The cost of curricular materials, instructional materials such as books, and online educational content
Costs for dual enrollment programs at higher education institutions
Educational therapies for students with disabilities, provided by licensed or accredited professionals
Expenses related to assistive technologies and other necessary accommodations
Requirements for Ensuring
Eligibility of Contributions
Qualifications to Operate
To qualify for participation in the tax credit, an organization must be a registered 501(c)(3) nonprofit, ensuring it is tax-exempt and not classified as a private foundation.
It is also required to serve students from at least two schools, ensuring its services reach a broad range of students and promoting diversity and accessibility within the scholarship program.
Operational and Financial Guidelines
Scholarship-granting organizations must undergo annual audits by an independent certified public accountant to ensure financial integrity and compliance with applicable regulations.
The organization must also adhere to both federal and state laws regarding its operations, ensuring that all scholarships are allocated properly and legally.
Furthermore, qualified organizations must maintain clear records to ensure transparency and to demonstrate that the funds are used exclusively for qualifying educational expenses.
Myths and Misconceptions
Debunking Myths
Myth: School choice takes money from traditional public schools
When a state passes a school choice program, money is never diverted from the state education budget; in fact, in many states the education budget was increased dramatically as part of the passage of the choice program.
Myth: Private schools are unaccountable (how can we make sure kids are getting a good education?)
Private schools face the ultimate accountability: if they do not do a good job, parents will unenroll their students.
Myth: Students do not benefit from private education
Most if not all students who benefit from choice programs are coming out of public schools that are deemed “failing” by their state board of education. At the end of the day, this program is about giving parents a choice.
Myth: School choice hurts public schools
Public schools get to keep almost all the federal and local tax dollars and usually a portion of the state funds allocated for each child. As homeschool public and private school enrollment increases school districts’ test scores improve (Cebula, Hall, Tackett 2016).
Myth: School Choice programs are not inclusive
Not every public school has to take every child. If a student has a special need or wants a special type of programing, the local public school is not required to provide it. The district may set up the service at another location and bus the student all the way across town to participate. Why should there be a different and more onerous standard put on a private school with a different mission and fewer resources at its disposal? If a public school isn’t required to take every child, why should we require a private school to take every child?
Students in school choice programs come from every race, gender, sexual orientation, and ability level. There is a misbelief that school choice programs deny underprivileged students. School choice programs create opportunity for underprivilege students.
Practical Examples
How Donors Can Maximize Their Tax Savings While Supporting Education.
They include public, private, and religious elementary or secondary schools, as well as homeschooling programs that comply with applicable state law.
