A Landmark Victory – Federal Educational Choice for Children Act Becomes Law!

On July 3, 2025, Congress passed the Educational Choice for Children Act (ECCA)—a historic federal tax credit program championing school choice for millions across the country.  Ohioans, already familiar with the power of school choice through our state scholarship programs as well as scholarships through scholarship granting organizations, have even more to celebrate.  The program will start in 2027.

What the ECCA Means Nationwide

• A major federal tax credit: Individuals can receive a 100% federal income-tax credit—up to $1,700 per year—for donations to qualifying scholarship-granting organizations (SGOs). The law allows unlimited annual cap, making the benefit permanent
• Scholarships for families: Scholarships go to students under 300% of their area’s median income—covering educational gaps in nearly 85–90% of American households
• Private funding, no federal administrative cost: Scholarship funds come from private donations, not taxpayer dollars, and are not managed by the U.S. Department of Education.
• Educational freedom across the U.S.: The ECCA ensures school choice is available even in states without current programs—bringing educational opportunity to families in all 50 states.

How It Strengthens School Choice in States Without It

For states lacking school choice laws, the ECCA:

1. Establishes new programs—States will designate SGOs to receive federal tax-credit-backed donations, creating scholarship systems from scratch
2. Empowers parents—While traditional school systems hold sway, families will gain real alternatives.
3. Encourages innovation—Nonprofits, including faith-based organizations, can launch scholarships suited to varying community needs.
4. Saves public funds—Tax credits encourage private giving and avoid drawing from state education budgets

This federal initiative spurs school choice innovation even where local policies are lacking.

Why It Matters for Ohio—Beyond EdChoice

Ohio already benefits from robust scholarship programs such as the Cleveland Scholarship, EdChoice Scholarship, and the Income-Based (Universal) Scholarship, as well as the Autism Scholarship and the Jon Peterson Special Needs Scholarships. But here’s how ECCA adds to the advantages to Ohio families and students:

• Stackable savings: Ohio families can combine ECCA-funded scholarships with state EdChoice vouchers, expanding their educational options and affordability
• Broader eligibility: While Ohio’s EdChoice historically targeted students in low-performing districts or lower-income families, ECCA empowers middle-income households too, expanding opportunity.
• Boost for SGOs: ECCA-generated donations can support more students statewide, helping more Ohio firms and nonprofits offer scholarships.
• Local fiscal relief: With private dollars supplementing tuition, public school funds remain intact and available for all children.

Final Takeaway

The ECCA isn’t just a national first—it’s a spark that ignites promise for all Ohio families. Our state has been a leader for decades: piloting the first scholarship program, The Cleveland Scholarship in 1996.  Now, thanks to federal legislation, we can enhance that legacy—empowering more parents, maximizing local choice, and showing the benefit of stacking federal and state support.

We applaud Congress for this milestone and are eager to see how Ohio families will use this additional toolkit to secure even brighter futures for their kids.