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Ted Cruz to Introduce School Choice Bill

  • U.S. Sen. Ted Cruz introduced the Universal School Choice Act on Tuesday, proposing federal tax credits totaling as much as $10 billion each year beginning in 2026 to support education scholarships.
  • This bill builds on prior Cruz legislation and companion bills introduced in the House by Republican Representatives Owens and Donalds, all prioritizing education, savings, and taxes.
  • The proposed amendment to the Internal Revenue Code allows dollar-for-dollar tax credits for charitable donations to nonprofit scholarship organizations supporting K-12 education expenses.
  • The tax credit is limited to $5,000 or a maximum of 10% of an individual's adjusted gross income, while for corporations it is capped at 5% of their taxable income. Additionally, 80% of the allocated funds are reserved for families living below the poverty threshold and are distributed on a first-come, first-served basis.
  • If passed by both chambers and signed into law, the legislation will enable expanded school choice nationwide and aligns with successful state efforts like Texas’ $1 billion Education Savings Account program.
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San Antonio Express-News broke the news in San Antonio, United States on Tuesday, May 20, 2025.
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