National School Voucher Program Passes Congress To Help Families Pay for Educational Expenses

U.S. President Donald Trump, joined by Republican lawmakers, signs the One, Big Beautiful Bill Act into law during an Independence Day military family picnic on the South Lawn of the White House on July 04, 2025 in Washington, DC. After weeks of negotiations with Republican holdouts Congress passed the One, Big Beautiful Bill Act into law, President Trump’s signature tax and spending bill. The bill makes permanent President Donald Trump’s 2017 tax cuts, increase spending on defense and immigration enforcement and temporarily cut taxes on tips, while cutting funding for Medicaid, food assistance and other social safety net programs. Samuel Corum/Getty Images

Congress just approved the first national school voucher program that will assist families to pay for their children's educational expenses, particularly for private schools.

The plan was passed on Thursday as part of Republican lawmakers' all-encompassing domestic policy bill. It will now head towards United States President Donald Trump's desk, who is expected to sign the bill into law.

National School Voucher Program

Under the program, families who earn up to 300% of their area's median income, which is equivalent to over $300,000 in some areas, will be eligible. This would include those who already send their kids to private schools.

The legislation comes as the culmination of a decades-long campaign by a coalition of private-education advocates, religious conservatives, and some parents. The bill's supporters argue that families should be given the freedom to choose the best K-12 school option for their kids and also receive help in paying for educational expenses.

The chief executive of the American Federation for Children, Tommy Schultz, said that the passage of the bill marks the biggest advancement of their goal so far. Despite passing Congress, last-minute negotiations resulted in the program being limited in its scope, according to the New York Times.

Being limited to states that opt in could allow liberal states, such as California and New York, to avoid participating in the program, which is seen as a victory for Democrats and teachers' unions. The latter argue that the vouchers leach students and government dollars and leave public schools at a disadvantage.

Congressional estimates suggest that the voucher program will cause up to $4 billion in lost revenue annually. Since there is no limit, some critics have expressed concerns about runaway costs.

Republicans' Domestic Policy Bill

Following the passage of the bill in the Senate, Sen. Bill Cassidy said that no child should be left trapped in a failing school. He said that the new legislation is the "FIRST federal school choice program in AMERICAN HISTORY," Education Week reported.

On the other hand, National Education Association President Becky Pringle said that the senators who voted for the bill are turning their backs on the people who need their support the most, arguing that the bill will finance massive tax breaks for the ultra-wealthy.

The bill was originally introduced in the House in May and included an estimated $4-trillion funding in tax cuts. The legislation calls for no tax on overtime and tips, which is capped at $25,000 for tips and nearly $13,000 for overtime, as per Yahoo News.

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