Bills
| 3.23.22

Should Low-Income Students get Federal Education Funding, Even if They're in a Private School? (H.R. 554)

Do you support or oppose this bill?

What is H.R. 554?

(Updated October 21, 2019)

In what is being called a complete "overhaul the Bush-era No Child Left Behind (NCLB) education law," this bill would authorize states to fund their local education agencies based on the number of eligible children enrolled in public schools  state-accredited private schools in each jurisdiction. Under current law, states allocate funds based on the number of eligible students in public schools/agencies. 

The change effectively allows federal funds to follow low-income students to any school they attend throughout their academic careers , public or private

This bill would also allow families that homeschool children to pay the expenses of that education through Coverdell education savings accounts. The existing limit on contributions to Coverdell savings accounts would be removed — but the accounts would also be set up with safeguards to prevent contributions that exceed the "qualified educational expenses" that are actually needed to homeschool children. 

Current law caps contributions to Coverdell education savings accounts at $2,000 per year. Tax-exempt qualified tuition programs — like 529 tuition programs — could be used to pay for qualified pre-kindergarten, elementary, and secondary education expenses.

Argument in favor

Families know better than the government what education option is best for their child. These funds help low-income students, and that shouldn’t change just because they’re attending a private school.

Argument opposed

Federal funding should be focused on the students who need it in public schools — how else will the nation's school system be re-built? Not to mention, the added benefits this bill gives to home-schooling are not focused on low-income families.

Impact

Low-income students and their families, people with Coverdell educational savings accounts or tax-exempt qualified tuition programs like 529 plans, local education agencies, and state education agencies.

Cost of H.R. 554

A CBO cost estimate is unavailable.

Additional Info

In-Depth: According to the bill’s sponsor, Rep. Luke Messer (R-IN), allowing the portability of federal funding for low-income students would free up $14.5 billion in existing annual federal education funding to follow students to the public or private school of their choice.

Senator Mike Lee (R-UT), who has sponsored this bill’s companion in the Senate, noted:  “We should do everything in our power to remove the obstacles preventing America’s parents from choosing the best education options for their children.”

His colleague, Senator Ted Cruz (R-TX), called for the approval of this legislation, saying that:

“Congress must seize this opportunity to eliminate burdensome federal mandates and ineffective programs to restore decision making back to parents and students.”

The Ranking Member of the House Education and Workforce Committee, Rep. Bobby Scott (D-VA), struck a different note, saying:

“I remain concerned that the Every Child Achieves Act lacks necessary protections to ensure states and school districts meet the needs of all students.”

A nearly identical version of this bill was introduced in September 2014, but it failed to progress out of committee before the 113th Congress ended.


Media:


Summary by Eric Revell
(Photo Credit: Flickr user kenycoleartist)