The Educational Choice for Children Act of 2025 creates federal tax credits for individuals and corporations who donate to scholarship organizations helping low-income students pay for K-12 education. Individual donors can claim credits up to 10% of their adjusted gross income or $5,000, while corporations can claim up to 5% of taxable income; eligible students come from households earning up to 300% of the area median income and can use funds at public, private, or homeschooled settings for tuition, materials, tutoring, and other education expenses. The bill sets a $10 billion annual cap on tax credits (allocated first-come, first-served) with automatic 5% increases in years when at least 90% of the cap is used, and makes scholarship funds tax-free to recipients starting in 2026. The legislation also includes strong protections against government control of scholarship organizations and schools, explicitly allowing private and religious schools to participate and protecting parents' rights to direct funds to faith-based institutions without government interference.
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