- Texas Sen. Ted Cruz introduced a school choice bill that would provide tax credits for individuals and businesses supporting student scholarships.
- Cruz's bill serves as a companion bill to similar legislation introduced earlier by Utah Rep. Burgess Owens.
- Owens said the proposed legislation "empowers parents to take the driver's seat in their child's future."
Utah Rep. Burgess Owens’ recent school choice bill offering tax incentives for contributions supporting student scholarships now has a companion bill in the U.S. Senate.
On Tuesday, Texas Sen. Ted Cruz introduced the “Universal School Choice Act” that allows up to $10 billion annually in dollar-for-dollar federal tax credits for individuals and businesses that contribute to non-profit scholarship-granting organizations.
Owens introduced similar legislation in the House earlier this year, telling the Deseret News it’s “one small step toward making sure that every child — no matter what ZIP code, what race, what background — has a choice.”
Cruz’s Senate bill is designed, according to his office, “to enhance universal school choice and options for every child, regardless of where they live.”
The Republican senator calls school choice “the civil rights issue of the 21st century.”
“Every child in America deserves access to a quality education that meets their individual needs, regardless of race, ethnicity, income, or ZIP code,” said Cruz in a Tuesday press release.
In a statement Tuesday, Owens said he’s grateful for Cruz’s partnership “to help lead the most transformational expansion of school choice” the nation’s ever seen.
“Once the envy of the world, America’s math, reading, and writing scores have plummeted — yet again a consequence of the federal government’s one-size-fits-all approach to education, which continues to leave our kids unprepared for the demands of today’s workforce,” said Owens.
“The Universal School Choice Act empowers parents to take the driver’s seat in their child’s future, unlocking a menu of education options that meet their unique needs.”
The Utah Republican has been a vocal advocate for school choice, arguing it offers parents opportunities to determine the right educational paths for their children.
For some, he said, the right choice might be the local public school. For others, it’s a parochial school or maybe homeschooling.
Universal School Choice Act highlights
- Cruz’s bill would amend the Internal Revenue Code of 1986 to provide a tax credit for individuals and corporations making contributions designated for scholarships benefiting qualified elementary and secondary school students.
- Individuals would be allowed a tax credit equal to the total of qualified contributions made in a taxable year — with maximum limits of 10% of adjusted gross income, or $5,000.
- Scholarship recipients would be allowed to use the money to cover tuition, fees, curricular materials and other educational expenses — including those for home-schooled students and special education services.
- Eligible scholarship-granting organizations must be nonprofit organizations that primarily engage in providing scholarship and operate under established guidelines such as undergoing independent audits and maintaining proper records.
- Scholarships should prioritize returning students, siblings of current recipients and those from low-income households.
- Organizers must avoid earmarking of funds for specific students.
- Parents retain the right to use scholarships at any qualified institution. The bill also includes protections preventing exclusion of private and religious schools from utilizing the scholarships.
Utah’s school choice battle being waged in the courts
Of course, school choice/vouchers/scholarships debates remain litigious educational topics in Utah.
In her decision against the scholarship program, Judge Laura Scott said that because Utah Fits All is created by the Utah Legislature and a publicly funded educational program, it must satisfy the constitutional requirements applicable to the “public education system” set forth in the Utah Constitution.
The Legislature, added Scott, does not have the authority “to circumvent these constitutional requirements by simply declining to ‘designate’ the program as part of the public education system.”
Scott later decided the school voucher program could continue pending the expected defendants’ appeal before the Utah Supreme Court.
The Utah Fits All Scholarship program gives eligible K-12 students up to $8,000 a year for private school tuition and other costs. It went into effect in the fall of 2024.
In its suit against the state, the Utah Education Association and other plaintiffs argued that the program violated the Utah Constitution because it diverts income tax revenue to fund private schools.
Meanwhile, proponents of the program have countered that the program did not affect the state’s system of public schools, but was in addition to that constitutional requirement, and that it cleared the bar of using income tax to support children.
Following the judge’s ruling, Utah Gov. Spencer Cox and legislative supporters of the scholarship program said they are preparing to appeal the decision to the Utah Supreme Court.