Educational Choice for Children Act of 2025
Latest action (31 Jan 2025): Introduced
What this bill does
Here is a plain-English summary:
H.R. 833 would create a new federal tax credit for individuals and corporations that donate cash or marketable securities to nonprofit "scholarship granting organizations," which in turn provide scholarships to elementary and secondary students. Individual donors could claim a credit up to the greater of $5,000 or 10% of their adjusted gross income; corporate donors could claim a credit up to 5% of taxable income. Total credits nationwide would be capped by an annual "volume cap," starting at $10 billion in 2026 and rising in future years based on usage, with 10% of the cap reserved and divided evenly among the states. Scholarship funds could cover tuition and a range of other education-related expenses, including at private, religious, and home schools, and scholarships received by students would not count as taxable income.
The bill primarily affects taxpayers who donate to qualifying scholarship organizations, students from households earning up to 300% of the area median income who could receive scholarships, and the nonprofit organizations that would need to meet specific operating, auditing, and distribution requirements to qualify. It also limits government authority to regulate or condition participation by scholarship organizations or private/religious schools, and gives parents of scholarship recipients a right to intervene in legal challenges to the law.
The bill was introduced on January 31, 2025, by Rep. Adrian Smith and referred to the House Committees on Ways and Means and Education and Workforce. As an introduced bill, it would need committee consideration, votes in the House and Senate, and the President's signature before becoming law; no further action has occurred yet.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
This bill is in the first stage of the legislative process. It was introduced into Congress on January 31, 2025. It will typically be considered by committee next before it is possibly sent on to the House or Senate as a whole.
Common questions
- What does H.R. 833 do?
- Here is a plain-English summary: H.R. 833 would create a new federal tax credit for individuals and corporations that donate cash or marketable securities to nonprofit "scholarship granting organizations," which in turn provide scholarships to elementary and secondary students. Individual donors could claim a credit up to the greater of $5,000 or 10% of their adjusted gross income; corporate donors could claim a credit up to 5% of taxable income. Total credits nationwide would be capped by an annual "volume cap," starting at $10 billion in 2026 and rising in future years based on usage, with 10% of the cap reserved and divided evenly among the states. Scholarship funds could cover tuition and a range of other education-related expenses, including at private, religious, and home schools, and scholarships received by students would not count as taxable income. The bill primarily affects taxpayers who donate to qualifying scholarship organizations, students from households earning up to 300% of the area median income who could receive scholarships, and the nonprofit organizations that would need to meet specific operating, auditing, and distribution requirements to qualify. It also limits government authority to regulate or condition participation by scholarship organizations or private/religious schools, and gives parents of scholarship recipients a right to intervene in legal challenges to the law. The bill was introduced on January 31, 2025, by Rep. Adrian Smith and referred to the House Committees on Ways and Means and Education and Workforce. As an introduced bill, it would need committee consideration, votes in the House and Senate, and the President's signature before becoming law; no further action has occurred yet.
- Has H.R. 833 become law?
- Not yet. As of 31 Jan 2025, H.R. 833 is introduced.
- Who sponsored H.R. 833?
- H.R. 833 was sponsored by Rep. Adrian Smith [R-NE3] (Republican-NE), with 91 cosponsors.
- What's the latest action on H.R. 833?
- Introduced (31 Jan 2025).
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