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House Republicans introduced a plan Monday to allocate up to $5 billion annually for scholarships to help families send children to private and religious schools, advancing Donald Trump‘s “universal school choice” agenda.

The proposal, included in a budget reconciliation bill, would be open to nearly all families, except those earning more than three times their local median income. It mirrors a Senate proposal by Sen. Bill Cassidy (R-La.), who said school choice “makes the American Dream possible.”

The plan would be funded through donations of cash or stock, with donors receiving a 100% tax credit. Critics warn it could function as a tax shelter, allowing wealthy investors to avoid capital gains taxes and undercut public school funding.

Education advocates argue the program would divert resources from public schools, especially as the Trump administration seeks cuts to the Education Department, including $1 billion in mental health and teacher training grants.

Opponents say such programs, like Texas’ recent $1 billion initiative, often benefit families already paying for private education.


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