Right now, thousands of children need your help.
There’s a new threat in Pennsylvania, and it’s House Bill 2632, which would undermine the successful EITC and Opportunity Scholarship programs and reduce educational opportunities for thousands of students actively seeking scholarships.
This wide-reaching bill was introduced by Rep. Nikki Rivera (D-Lancaster) just days ago and is quickly moving through the PA House of Representatives. I just left the Education committee that passed it on party lines, and we expect a House floor vote as early as Monday.
The fact is, more and more parents are seeking better educational options for their children, yet Pennsylvania’s successful school choice programs that provide those options are under growing attack.
One Democratic lawmaker recently declared she wants the popular Educational Improvement Tax Credit (EITC) program to “go away for good.” Sadly, House Bill 2632 would move Pennsylvania in that direction by reducing support for a program that has helped hundreds of thousands of students succeed.
HB2632 is a major cut to the successful EITC program. It would make massive cuts to tax credits, taking scholarship opportunities away from tens of thousands of current students. It would also impose a tax on scholarship organizations and increase reporting requirements. Here’s some specifics:
- Scholarship cuts: HB2632 cuts funding for scholarship organizations by $102 million, reducing the resources available for scholarships. Based on current scholarship amounts, that could affect an estimated 30,000 kids who rely on these opportunities. Donors to scholarship organizations are also impacted, as their credit is reduced to a 75% tax credit instead of the current 90% credit for a two-year commitment.
- Burdensome regulations: HB2632 would require the Auditor General to regularly audit every scholarship organization and every participating private school; oversight that is not required for public schools in the same way. This bill also imposes new reporting requirements on private schools and adds a 2% tax on scholarship organizations to fund state agencies.
- 3. Threat to freedom: HB2632 would require state agencies to publish the top ten individual donors contributing to pass-through entities, raising concerns about donor privacy. It would also tie student income eligibility for scholarships to future legislative action on minimum wage increases.
For the past 25 years, Pennsylvania’s Educational Improvement Tax Credit (EITC) program has provided life-changing scholarship opportunities for students and families seeking educational options that best meet their needs. PA Family Institute has been a part of granting these opportunities through our Family Choice Scholarship Program, one of the state’s scholarship-granting organizations.
Together with the Opportunity Scholarship Tax Credit (OSTC) program, Pennsylvania awarded more than 100,000 scholarships to students across the Commonwealth during the 2023-2024 school year. Yet demand continues to far exceed available resources. Because scholarship tax credits are capped, nearly 70,000 student scholarship applications went unmet.
Now, House Bill 2632 threatens to undermine these successful programs and reduce educational opportunities for Pennsylvania students.
Your voice is important right now, as we are expecting a vote in the Pennsylvania House in a matter of days. Please contact your State Representative and State Senator today and urge them to oppose House Bill 2632 and any effort to weaken PA’s highly sought-after EITC and OSTC scholarship programs.
Every student deserves the opportunity to succeed. Please take a moment today to contact your lawmakers and tell them to protect school choice opportunities in Pennsylvania.
Additional Resources: HB2632 Bill Analysis
