Jan Resseger is a social justice warrior who fights for the underdog. She describes here how Trump’s budget enacts the fever dreams of evangelicals and billionaires. He would change federal aid from its historic purpose–equitable funding–and turn it into school choice, diverting funds from the poorest children to those with ample resources. Since 1965–for 70 years–federal education funding for public schools has enjoyed bipartisan support. Trump ends it.
She writes:
Earlier this week, Education Week‘s Mark Lieberman released a concise and readable analysis of the likely impact for public education of two pieces of federal funding legislation: the “Big, Beautiful” tax and reconciliation bill currently being debated in the U.S. Senate to shape public school funding beginning right now in FY 2025, and also President Trump’s proposed FY 2026 federal budget for public schooling in the fiscal year that begins October 1st.
Trump’s FY 2026 budget proposal saves Head Start.
Lieberman shares one important piece of positive news about Trump’s treatment of Head Start in next year’s federal budget: “Some programs survived the cut—including Head Start.” In early May, the Associated Press‘s Moriah Balingit reported: “The Trump administration apparently has backed away from a proposal to eliminate funding for Head Start… Backers of the six-decade-old program, which educates more than half a million children from low-income and homeless families, had been fretting after a leaked Trump administration proposal suggested defunding it… But the budget summary… did not mention Head Start. On a call with reporters, an administration official said there would be ‘no changes’ to it.”
Federal funding for U.S. public schools looks bleak.
Lieberman’s assessment of federal public education funding is not so encouraging. Overall, “The administration is aiming to eliminate roughly $7 billion in funding for K-12 schools in its budget for fiscal 2026, which starts Oct. 1. Several key programs will be maintained at today’s funding level, without an increase: “Flat funding amounts to a de-facto cut given inflation. The administration is proposing to maintain current funding levels for key programs like Title I-A for low-income students ($18.4 billion), the Individuals with Disabilities Education Act, Part B for special education ($14.2 billion) and Perkins grants for K-12 and postsecondary career and technical education ($1.4 billion).”
What has been historically a key purpose of federal public education funding—to compensate for vast inequity in the states’ capacity and the states’ willingness to fund public education—is being compromised. Lieberman explains that much of federal funding, “is currently geared toward supporting special student populations including English learners, migrants, students experiencing homelessness, Native students, and students in rural schools. Longstanding federal programs that support training for the educator workforce; preparing students for postsecondary education; reinforcing key instructional areas like literacy, civics, and the arts… would disappear. A new K-12 grant program would offer a smaller pool of funds to states and let them decide whether and how to invest in those areas. And for the first time, all federal funding for special education would flow to states through a single funding stream…. Experts view Trump’s budget as part of an effort to roll back a half-century of effort by the federal government to help make educational opportunities more consistent and equitable from state to state and district to district.”
The “Educational Choice for Children Act,” an alarming federal school voucher bill, is hidden inside the “Big Beautiful” bill.
Lieberman worries about the enormous tuition tax credit voucher plan embedded deep in the weeds of the “Big, Beautiful” tax and reconciliation bill now being considered in the U. S. Senate: “Separate from the federal budget process, Congress is currently advancing a massive package of tax changes, including a proposal for a new tax-credit scholarship program that fuels up to $10 billion a year in federal subsidies for private K-12 education. Annual spending on that program could approach the amount the Trump administration is proposing to cut from elsewhere in the education budget.” The voucher proposal is called the Educational Choice for Children Act (ECCA).
In a separate analysis of the “Big, Beautiful” bill as the House passed it in late May, Lieberman describes this proposed ECCA tuition-tax-credit voucher program: “House lawmakers narrowly approved a sweeping legislative package with $5 billion in annual tax credits that fuel scholarships and related expenses at K-12 private schools. The federal subsidies would come in the form of dollar-for-dollar tax credits for individuals and corporations that donate to largely unregulated state-level organizations that give out scholarship funds for parents to spend on private educational options of their choosing. Any student—even in states that have resisted expanding private school choice—from a family earning less than 300 percent of the area median gross income would be eligible to benefit from a scholarship paid for with a federally refunded donation.”
Lieberman adds: “No other federal tax credit is as generous. The Internal Revenue Service doesn’t currently supply tax credits worth the full donation amount for any cause, as the private school choice scholarship credit would do. The federal government currently offers tax credits on donations for disaster relief, houses of worship, veterans’ assistance groups, and children’s hospitals at roughly 37 percent of the donated amount. A $10,000 donation to those causes would yield a tax credit of $3,700. By contrast, under the proposed legislation, if a taxpayer donates $10,000 to a scholarship (voucher)-granting organization, the IRS would give them a tax credit of $10,000.”
The Institute for Taxation and Economic Policy’s Carl Davis explains that because these federal school vouchers are primarily a tax shelter, they might appeal to wealthy people who are not even supporters of school privatization: “The tax plan… includes a provision granting extraordinarily generous treatment to nonprofits that give out vouchers for free or reduced tuition at private K-12 schools. While the bill significantly cuts charitable giving incentives overall, nonprofits that commit to focusing solely on supporting private K-12 schools would be spared from those cuts and see their donors’ tax incentive almost triple relative to what they receive today. On top of that, the bill goes out of its way to provide school voucher donors who contribute corporate stock with an extra layer of tax subsidy that works as a lucrative tax shelter. Essentially, the bill allows wealthy individuals to avoid paying capital gains tax as a reward for funneling public funds to private schools.” “We estimate the bill would reduce federal tax revenue by $23.2 billion over the next 10 years as currently drafted, or by $67 billion over the next ten years if it is extended beyond its four-year expiration date… As currently drafted, the bill would facilitate $2.2 billion in federal and state capital gains tax avoidance over the next 10 years.”
The Brookings Brown Center on Education Policy’s Jon Valant warns that the vouchers are so deeply buried in the “Big, Beautiful” bill that lots of people would not be aware of the plan’s existence until after it is passed: “The Educational Choice for Children Act (ECCA) continues to move, quietly, towards becoming one of America’s costliest, most significant federal education programs. Now part of the One Big Beautiful Bill, ECCA would create a federal tax-credit scholarship program that’s unprecedented in scope and scale. It has flown under the radar, though, and remains confusing to many observers… ECCA’s stealthiness is partly due to the confusing nature of tax-credit scholarship programs. These programs move money in circuitous ways to avoid the legal and political hurdles that confront vouchers.”
Valant explains how tax-credit vouchers work: “Tax-credit scholarship programs like ECCA aren’t quite private school voucher programs, but they’re first cousins. In a voucher program, a government gives money (a voucher) to a family, which the family can use to pay for private school tuition or other approved expenses. With a tax-credit scholarship, it’s not that simple. Governments offer tax credits to individual scholarship granting organizations (SGOs). These SGOs then distribute funds… to families.”
Valant creates a scenario that shows how this tax credit program could help the wealthy and leave out poorer families. A rich donor, Billy, donates $2 million in stock to an SGO: “Billy’s acquaintance, Fred, lives in the same town as Billy, which is one of the wealthiest areas in the United States. In fact, Fred set up the SGO, looking to capture ECCA funds within their shared community… Like Billy, Fred doesn’t particularly care about K-12 public education… It might seem that Fred’s SGO couldn’t distribute funds to families in their ultra-wealthy area, since ECCA has income restrictions for scholarship recipients. That’s not the case. ECCA restricts eligibility to households with an income not greater than 300% their area’s median income. In Fred and Billy’s town, with its soaring household incomes, even multimillionaire families with $500,000 in annual income are eligible… So, Fred is looking to give scholarship money to some wealthy families in his hometown.”
Valant summarizes the result if the “Big, Beautiful” bill is enacted: “This bill would introduce the most significant and costliest new federal education program in decades. It has virtually no quality-control measures, transparency provisions, protections against discrimination, or evidence to suggest that it is likely to improve educational outcomes. It’s very likely to redirect funds from poor (and rural) areas to wealthy areas.”
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