Why it Matters
The House Committee on Education and Workforce held an Oct. 23 field hearing in Bethlehem, Pa., titled “More Choices, Brighter Futures: Expanding Education Freedom,” where Chair Tim Walberg (R-MI) urged Pennsylvania to participate in the federal Education Freedom Tax Credit, scheduled to launch Jan. 1, 2027.
The Trump administration issued proposed, temporary regulations for the program in early October, putting a new school-choice decision before governors. Arizona Democrats in Congress have called for its repeal, while Pennsylvania's governor faces pressure over school vouchers.
The Big Picture
The federal government published temporary regulations for the Education Freedom Tax Credit on Oct. 2, along with proposed regulations governing the program. The credit will let eligible taxpayers claim up to $1,700 annually for qualifying contributions to scholarship-granting organizations, and participating states will certify eligible organizations. The program is scheduled to take effect Jan. 1, 2027.
Pennsylvania's gubernatorial race has made the issue locally salient. During an Oct. 7 debate, Republican candidate Stacy Garrity criticized Gov. Josh Shapiro (D-PA) for changing his position on school vouchers. Arizona Democrats in Congress were also calling for repeal, arguing that problems associated with Arizona's school-choice program could spread nationally.
The committee has held a series of school-choice hearings in recent years, including "Education Without Limits" in March 2025 and "School Choice: Expanding Educational Freedom for All" in April 2023.
What They're Saying
The central dispute was whether the federal tax credit would supplement public education or divert resources toward private schools. Nathan Benefield, chief policy officer of the Commonwealth Foundation, argued that the program would provide additional educational resources without reducing existing federal, state, or local public school appropriations. Susan Spicka, executive director of Education Voters of Pennsylvania, characterized the program as a private school voucher initiative and warned it could be a net negative for public school districts.
Spicka also cited a Brookings analysis describing the federal scholarship program as "Title I for rich kids," raising concerns that its broad income eligibility rules would allow relatively affluent families to benefit. Under the law, students generally qualify if their household income does not exceed 300% of the area's median gross income.
Eric Paisner, chief legal officer of the National Alliance for Public Charter Schools, highlighted charter school growth in Pennsylvania and advocated changes to federal charter school funding. He discussed legislation that would allow schools to use enrollment-based funding for expenses such as transportation and digital subscriptions.
Ilen Perez-Valdes, a Future Leaders Fellow with the American Federation for Children, described how a Florida school-choice scholarship allowed her mother to enroll her in a private school equipped to address her medical needs after her assigned public school struggled to accommodate her three autoimmune disorders. She credited the scholarship with providing access to a school with nursing support.
Political Stakes
Walberg urged Pennsylvania to opt into the Education Freedom Tax Credit, saying the state was among 19 that had not yet elected to participate. He argued that refusing to participate would deny Pennsylvania families access to additional educational opportunities.
Rep. Ryan Mackenzie (R-PA) has promoted the Fostering Learning and Excellence in Charter Schools (FLEX) Act, H.R. 7082, which would update the federal Charter Schools Program. The House Education and Workforce Committee approved the legislation, as amended, by a 19-15 vote on Jan. 21.
Rep. Adelita Grijalva (D-AZ) criticized the federal program in an Oct. 27 social media post, warning that a nationwide voucher system would divert funding from public schools. The committee's published hearing recap identified no Democratic committee members among the participants.
The Bottom Line
The hearing did not itself advance legislation. The Education Freedom Tax Credit is scheduled to begin Jan. 1, 2027, and Pennsylvania has not yet elected to participate. The IRS has established procedures for state participation, but no universal deadline requiring Pennsylvania to opt in before the program's launch has been identified.
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