The Universal School Choice Act creates federal tax credits to encourage donations to nonprofit scholarship organizations that help families pay K-12 education expenses, including tuition, tutoring, educational materials, and special education services for private schools and homeschooled students. Individuals can claim tax credits up to 10% of their adjusted gross income or $5,000, while corporations can claim credits up to 5% of taxable income, with a total federal cap of $10 billion annually that can increase if the cap reaches 90% utilization. Donations to qualifying scholarship organizations are exempt from income taxes, and these organizations must distribute at least 90% of donations within two years, with state allocations based on student population and poverty levels. The bill includes safeguards to prevent government control over participating scholarship organizations, private schools, or religious institutions that receive scholarship funds.