WHAT IS THE ECCA?
The ECCA or The Educational Choice for Children Act is a proposed bill that allows individuals a new tax credit for contributions to organizations, like APESF, that provide scholarships to elementary and secondary school students. Such students must be members of a household with incomes not greater 300% of the area median gross income and be eligible to enroll in a public elementary or secondary school. It provides a donation incentive for individuals to fund scholarship awards for students to cover expenses related public and private education.
● The ECCA creates a federal scholarship tax credit that would directly empower K-12 parents of up to two million students to choose the best school or education service for their own children.
● Opens at least $5 billion in credits annually. Individual donors may contribute up to 10% of their adjusted gross income or $5,000, whichever is greater.
● Includes all 50 states! Each state is guaranteed access to up to $10 million in tax credits if SGOs (Scholarship Granting Organizations that collect dollars and award scholarships) can raise the funds, then it is first- come, first-serve.
● Built to expand if there is demand. The bill includes an automatic 5% escalator if 90% of the credit cap is reached.
● Makes 85-90% of K-12 students eligible. Students in households at or below 300 percent of median gross income by region as determined by the U.S. Department of Housing and Urban Development qualify.
● It’s not just for private school. Students in every school setting are eligible – public, private, and homeschool.
● Allows parents to create a highly customized education. SGOs (Scholarship Granting Organizations) determine the individual amount of scholarship awards and uses, which can include tuition, tutoring, education technology, on-line courses, curriculum, fees, homeschool expenses, or special needs services.
● The ECCA does not grow the government! The ECCA will not grow the size and scope of government, as it gives no role to the U.S. Department of Education and contains no federal mandates requiring bureaucratic oversight.
● It does not raise taxes. In fact, it’s letting citizens decide how to spend a portion of the taxes they would already be paying. Nothing more!
● Increases parents’ purchasing power. Arizona parents would be able to stack their federal scholarship on top of their state tax credit scholarship or ESA, giving them more flexibility to choose and build the high-quality education that fits their child’s needs.
● Gives public school students a taste of education freedom. Students being educated in Arizona public schools need educational options as well to help them customize and optimize their learning outside of the classroom. These students, who aren’t currently eligible for an Arizona ESA or tax credit scholarship, would be eligible for ECCA dollars.
● Children are most likely to succeed when they and their families are empowered to choose the education option that meets their unique needs.
● Arizona should continue to lead on school choice – now federally.
● The ECCA is fiscally responsible. The ECCA is a limited-government, pro-freedom policy. It gives no role to the U.S. Department of Education and contains no federal mandates on states, school districts, schools or homeschool families.
● We are in a brief and pivotal window of opportunity to secure a federal win with a new Presidential Administration that shares our commitment to educational choice.
● Children in all 50 states need education freedom – even, and especially, if their states’ leadership is politically opposed and refuses to pass it at the state level.
Status as of May 2025:
● The ECCA, in the form of H.R. 833 and S. 292, was reintroduced in January 2025.
● It has gained significant support in Congress, with over 180 co-sponsors in 2024.
● The House ways & Means Committee has approved a version of the bill.
● The U.S. House of Representatives passed the ECCA on May 22, 2025, as a part of the broader budget reconciliation package. The bill is now awaiting consideration in the Senate
Key Changes From Earlier Versions of the Bill:
● Reduced Tax Credit Cap: The maximum allowable tax credits have been reduced from $10 billion to $5 billion annually.
● Shortened Duration: The program now runs for four tax years (2026-2029) in stead of being open-ended.
● Eligible Donors Limited: Only individual taxpayers are eligible to recieve a tax credit. Corporate donations are no longer permitted.
● Scholarships Now Taxable: Scholarships are considered taxable income to recipient families in this draft. This is a shift from the original version, where they were tax-exempt. This is widely viewed as a drafting error and is expected to be corrected.
● Special Education Admission Mandate Added: The bill now requires that scholarships may only be used at schools that do not deny based on special education needs and that fulfill IEP requirements for enrolled students. This provision is likely to face removal under Senate procedural rules.
● Send a letter to your Senators and Representative today asking them to pass the ECCA so that all K-12 students can have access to a high-quality K-12 education. Don’t know who your representative is or what to write? The Invest in Education Coalition provides a way to do this in one easy action. Click below to send an email to your representative. By filling in your info, your representative will be identified and the scripted email will be automatically sent to them. Please take a few seconds to stand up for school choice today
● Post on social media in support of the ECCA. Explain how education freedom has or would benefit your family or someone you love.
