Universal School Choice Act
Latest action (20 May 2025): Introduced
What this bill does
The Universal School Choice Act would amend the federal tax code to create a new tax credit for donations to nonprofit "scholarship granting organizations" that fund elementary and secondary education expenses for eligible students. Individuals could claim a credit equal to their contributions, up to the greater of 10% of adjusted gross income or $5,000, while corporations could claim a similar 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 allocated among states based on child population and poverty rates, with unused amounts reallocated during the year. The scholarships funded through this system could cover tuition, curricular materials, tutoring, therapies for students with disabilities, transportation, and homeschooling expenses, and would not be counted as taxable income for recipients' families.
The bill affects taxpayers who donate to qualifying scholarship organizations, the organizations themselves (which must meet auditing, reporting, and distribution requirements), and students eligible for public school enrollment who could receive scholarships for public, private, religious, or home education. The Treasury Department would be responsible for administering the volume cap, tracking contributions in real time, and enforcing rules against misuse, including penalties for organizations that fail to distribute sufficient funds to students.
The bill was introduced in the Senate on May 20, 2025, by Senator Ted Cruz and referred to the Committee on Finance. It has not yet received committee action, and would need to pass through committee review, floor votes in both chambers, and presidential signature before becoming law.
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 May 20, 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 S. 1810 do?
- The Universal School Choice Act would amend the federal tax code to create a new tax credit for donations to nonprofit "scholarship granting organizations" that fund elementary and secondary education expenses for eligible students. Individuals could claim a credit equal to their contributions, up to the greater of 10% of adjusted gross income or $5,000, while corporations could claim a similar 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 allocated among states based on child population and poverty rates, with unused amounts reallocated during the year. The scholarships funded through this system could cover tuition, curricular materials, tutoring, therapies for students with disabilities, transportation, and homeschooling expenses, and would not be counted as taxable income for recipients' families. The bill affects taxpayers who donate to qualifying scholarship organizations, the organizations themselves (which must meet auditing, reporting, and distribution requirements), and students eligible for public school enrollment who could receive scholarships for public, private, religious, or home education. The Treasury Department would be responsible for administering the volume cap, tracking contributions in real time, and enforcing rules against misuse, including penalties for organizations that fail to distribute sufficient funds to students. The bill was introduced in the Senate on May 20, 2025, by Senator Ted Cruz and referred to the Committee on Finance. It has not yet received committee action, and would need to pass through committee review, floor votes in both chambers, and presidential signature before becoming law.
- Has S. 1810 become law?
- Not yet. As of 20 May 2025, S. 1810 is introduced.
- Who sponsored S. 1810?
- S. 1810 was sponsored by Sen. Ted Cruz [R-TX] (Republican-TX), with 1 cosponsor.
- What's the latest action on S. 1810?
- Introduced (20 May 2025).
Related bills in Taxation
EFIN Verification Act of 2026
Digital Asset Tax Certainty Act
Protecting Taxpayers from Ghost Preparers Act
Tax Relief for Fraud Victims Act
Bill100 mirrors the public U.S. legislative record from Congress.gov and GovTrack and adds plain-English AI summaries. It is an information tool, not legal, compliance or lobbying advice, and it is not affiliated with the U.S. Congress or any government agency. AI summaries can simplify or omit detail — every bill links to the official source; verify there before you rely on it.