By shira miller
by Shira Miller
Groundbreaking legislation passes Senate, creating unprecedented opportunities for Torah education funding
The Senate has passed the Educational Choice for Children Act (ECCA), part of the larger domestic policy package, marking a historic milestone for Jewish families seeking quality Torah education for their children. This $5 billion federal school voucher program represents the first nationwide initiative of its kind, offering unprecedented financial relief to families who have long struggled with the dual burden of paying taxes for public schools while also funding their children’s yeshiva education.
For decades, Orthodox Jewish families have made tremendous sacrifices to provide their children with a Torah-based education, often working multiple jobs, working Bingo, forgoing vacations, and delaying major purchases to afford yeshiva tuition. This new program finally acknowledges that parents should have meaningful choices in their children’s education and provides concrete financial support to make those choices accessible.
The ECCA creates a straightforward system that will directly benefit yeshiva families and those who want their children to attend private schools  across the country. Here’s how it works:
Scholarship Eligibility: Families earning up to 300% of their area’s median income can apply for scholarships through certified Scholarship Granting Organizations (SGOs). These scholarships can be used for yeshiva tuition, Jewish studies materials, Hebrew language tutoring, and other educational expenses that support Torah learning.
Income Thresholds: The program’s generous income limits mean that many working Orthodox families will qualify. For example, in communities like Lakewood, NJ, or Brooklyn, NY, families earning well into six figures may still be eligible for assistance, recognizing the high cost of living in areas with established Jewish communities.
Flexible Use: Unlike rigid public school systems, these scholarships can be tailored to each family’s specific educational needs, whether that’s covering full yeshiva tuition, supplementing costs for families with multiple children, or supporting specialized Jewish educational programs.  It is also a tremendous boon for Kiruv organizations such as the JEP programs.  Now those who attend such programs can realistically find their way to Yeshivos and day schools.
The program includes an unprecedented incentive structure that will transform how Jewish communities support Torah education:
Dollar-for-Dollar Tax Credits: Unlike typical charitable donations that only reduce taxable income, donations to SGOs provide a full tax credit. This means a $5,000 donation to support yeshiva scholarships results in a $5,000 reduction in tax liability – essentially making the donation cost-free for many supporters.
Stock Donations: Wealthy community members can donate appreciated stocks to SGOs and receive full tax credit for the stock’s value without paying capital gains taxes. This creates a powerful incentive for successful Jewish business owners and professionals to support Torah education in their communities.
Community-Wide Impact: Anyone can donate to SGOs, not just parents with children in yeshivos. This allows grandparents, successful community members, and childless couples to meaningfully support Jewish education while receiving substantial tax benefits.
For generations, Orthodox Jewish families have faced what many consider a form of educational taxation without representation. They pay property taxes and federal taxes that fund public schools their children don’t attend, while simultaneously paying full tuition for their children’s Jewish education.
Financial Justice: This program finally provides a measure of financial justice, allowing Jewish families to redirect some of their tax burden toward their children’s actual education rather than schools that don’t serve their community’s needs.
Strengthening Jewish Continuity: By making yeshiva education more affordable, the program supports Jewish continuity and strengthens Orthodox communities. Families who might have been forced to choose less intensive Jewish education due to financial constraints can now access the full range of Torah learning opportunities.
Supporting Diverse Jewish Communities: The program benefits not just large Orthodox communities but also smaller Jewish communities where families often struggle to maintain quality Jewish education due to higher per-pupil costs.
The program will take effect after December 31, with a $5 billion annual cap that can increase by 5% yearly. While the program is currently set to sunset in 2029, the strong bipartisan support for school choice suggests potential for renewal.
Immediate Impact: Yeshiva administrators and parent organizations should begin preparing now by identifying potential SGOs in their areas or working to establish new ones. The certification process through the US Treasury and IRS is expected to begin soon.
Long-Term Benefits: As the program demonstrates its effectiveness, it may pave the way for expanded school choice initiatives that further support Jewish education and religious freedom in America.
This victory comes after decades of advocacy by Jewish organizations and school choice supporters who recognized that educational freedom is fundamental to religious liberty. While some critics raise concerns about accountability and public school funding, the Orthodox Jewish community has consistently demonstrated its commitment to educational excellence and responsible stewardship of resources.
Proven Track Record: Yeshivos have a long history of academic achievement, with graduates consistently performing well in higher education and professional careers while maintaining strong Jewish identity and values.
Community Oversight: The Jewish community’s strong tradition of communal responsibility ensures that scholarship funds will be used appropriately and effectively to support genuine educational needs.
The passage of the ECCA represents more than just financial relief – it’s a recognition that diverse educational approaches strengthen American society. For Orthodox Jewish families, it means:
The final Senate version includes important enhancements to the original House proposal:
Expanded Tax Credits: Every taxpayer can now receive up to $1,700 in dollar-for-dollar tax credits for donations to SGOs, with the annual donation cap removed entirely.
Community Impact: This means that if every member of the Orthodox Jewish community participates – from young professionals to retirees, from parents to childless individuals – communities could potentially raise hundreds of millions of dollars annually in scholarship funds at zero net cost to donors.
Broader Eligibility: With income thresholds exceeding $300,000 in many Jewish communities, most Orthodox families will qualify for scholarships while simultaneously being able to contribute as donors.
The passage of the ECCA represents more than just financial relief – it’s a recognition that diverse educational approaches strengthen American society. For Orthodox Jewish families, it means:
As the Orthodox Jewish community prepares to benefit from this historic legislation, communal leaders, school administrators, and parent organizations must work together to maximize its impact. This includes establishing effective SGOs, educating families about the application process, and ensuring that the program’s benefits reach all segments of the community.
The ECCA represents a watershed moment for Jewish education in America – a long-overdue recognition that supporting parental choice in education strengthens both individual families and the broader tapestry of American society. For Orthodox Jewish families who have sacrificed so much to ensure their children receive a Torah education, this program offers not just financial relief but validation that their educational choices are valued and supported by the nation they proudly call home.
As the Orthodox Jewish community prepares to benefit from this historic legislation, communal leaders, school administrators, and parent organizations must work together to maximize its impact. This includes establishing effective SGOs, educating families about the application process, and ensuring that the program’s benefits reach all segments of the community.
It is hoped that the Yeshivos and Day schools will not choose to abuse this remarkable benefit to Yeshiva families by raising tuitions in order to take this extra funding for administrative costs.  This will be a terrible Chillul Hashem if done.
The ECCA represents a watershed moment for Jewish education in America – a long-overdue recognition that supporting parental choice in education strengthens both individual families and the broader tapestry of American society. For Orthodox Jewish families who have sacrificed so much to ensure their children receive a Torah education, this program offers not just financial relief but validation that their educational choices are valued and supported by the nation they proudly call home.

Δ

Δ
Three times the median income? That’s about 150,000 a year. Unfortunately, a large number of frum families earn more than that between both parents working. Even up to 300,000 a year parents struggle to meet expenses. Now all that’s going to happen is Families earning less than 150,000 year will have more expendable income to be able to compete for the same goods that people earning over that limit would like to buy, and now those earning above the income limit will end up paying more for a given item due to basic supply and demand economics. In the end, the schools aren’t going to lower their tuition for Parents who earn more. This sounds similar to giving Medicaid and food stamps for people with higher income limits… it Adds to inflationary pressures for people earn more than the limit. We need across the board educational credits for people at all income levels.
Each “Tax paying” donor cannot give more than $1700.
Unfortunately – there’s nothing here…
this summary is misleading.
it’s capped at $1700 per taxpayer.
there is no total nationwide cap.
big difference.
just like every yeshiva and day school in florida did after Gov DeSantis sent every student 8000, they all raised tuition 8000. and who is funding these SGOs? we will need to apply to these private groups to get the 5k each year?
If one does not follow the logic mentioned in the Communist Manifesto
the income eligibility threshhold should based on after tax income
the money one pays to the government does pay ones bills
this program makes sense globally, as usual, but ho wwill it benefit individual families? one fam can donate 0 but get 5000/kid in scholarship and another donates the maximum ad gets pennies in scholarship aid. the schools have no reason to decrease tuition at all. all this does is gets donors to donate what would have been general tax revenue to a specific school but not to the direct benefit of the donor’s choice.
Here is the whole section about school choice
SEC. 70411. TAX CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS TO SCHOLARSHIP
GRANTING ORGANIZATIONS.
(a) Allowance of Credit for Contributions of Individuals to
Scholarship Granting Organizations.–
(1) In general.–Subpart A of part IV of subchapter A of
chapter 1 is amended by inserting after section 25E the
following new section:
SEC. 25F. QUALIFIED ELEMENTARY AND SECONDARY EDUCATION SCHOLARSHIPS.
(a) Allowance of Credit.–In the case of an individual who is a
citizen or resident of the United States (within the meaning of section
7701(a)(9)), there shall be allowed as a credit against the tax imposed
by this chapter for the taxable year an amount equal to the aggregate
amount of qualified contributions made by the taxpayer during the
taxable year.
(b) Limitations.–
(1) In general.–The credit allowed under subsection (a)
to any taxpayer for any taxable year shall not exceed $1,700.
(2) Reduction based on state credit.–The amount allowed
as a credit under subsection (a) for a taxable year shall be
reduced by the amount allowed as a credit on any State tax
return of the taxpayer for qualified contributions made by the
taxpayer during the taxable year.
(c) Definitions.–For purposes of this section–
(1) Covered state.–The term covered State' means one of
the States, or the District of Columbia, that, for a calendar
year, voluntarily elects to participate under this section and
to identify scholarship granting organizations in the State, in
accordance with subsection (g).

(2) Eligible student.--The termeligible student’ means
an individual who–
(A) is a member of a household with an income
which, for the calendar year prior to the date of the
application for a scholarship, is not greater than 300
percent of the area median gross income (as such term
is used in section 42), and
(B) is eligible to enroll in a public elementary
or secondary school.
(3) Qualified contribution.–The term qualified
contribution' means a charitable contribution of cash to a
scholarship granting organization that uses the contribution to
fund scholarships for eligible students solely within the State
in which the organization is listed pursuant to subsection (g).

(4) Qualified elementary or secondary education
expense.--The termqualified elementary or secondary education
expense’ means any expense of an eligible student which is
described in section 530(b)(3)(A).
(5) Scholarship granting organization.–The term
scholarship granting organization' means any organization--

(b) Definitions.--In this section, the termsqualified
elementary or secondary education expense’, eligible student', andscholarship granting organization’ have the same meaning given such
terms under section 25F(c).”.
(2) Conforming amendment.–The table of sections for part
III of subchapter B of chapter 1 is amended by inserting before
the item relating to section 140 the following new item:
Sec. 139K. Scholarships for qualified elementary or secondary
education expenses of eligible students.”.
(c) Effective Date.–
(1) In general.–Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
taxable years ending after December 31, 2026.
(2) Exclusion from gross income.–The amendments made by
subsection (b) shall apply to amounts received after December
31, 2026, in taxable years ending after such date.
As the plan looks now, this offers no help to working tax payers earning 3 times the median income in their country, state, etc. If earning $250-$300k I’m most likely phased out anywhere outside of NY. Once again I’m stuck paying full tuition while others get breaks. It should be a flat per child federal tax credit or voucher. Why punish those with “higher” incomes. We pay plenty in taxes. Treat everyone equally. The government should not be picking winners and losers.
For a family of 5-6 children, possibly in various schools, their tuition obligation is at minimum 40-60k and now they can “donate” part of their taxes to an SGO for a max of $1700 who may or may not give it to your child’s yeshiva, which will be reduced due to SGO administration fees so now your obligation is 38K-58k. How is this going to help anyone? This is all a big bunch of nothing. The yeshiva gets an extra few thousand if that and the rich donors stop giving since they now have an excuse. Many young families don’t make enough to pay taxes at all so they won’t be contributing at all.
Based on this parents wishing to send their children to catholic schools should also have this option …
Thank you Vin!
Had to go before the reconciliation committee There will be changes.
Heard from the gvirim – ‘yeah, so…we’re going to be reducing our donations substantially at that point so expect proportionate tuition increases to settle in pretty quickly’
School choice? In the yeshiva community, it’s the school’s choice.
It’s a pity the author/ai used the house version for most of the article leading to so much misinformation.
In the current version:
The max donation-credit is $1700 per taxpayer per year.
There is no cap on how many people can get this credit.
It’s permanent, no sunset in 2029.
Donations given to an SGO located in state x must be used for scholarships in that state.
States must opt-in to this program in order for donations to scholarship organizations in the state to be credited. That means each state gets to make rules for SGOs will have to follow to qualifty.
The state opt-in has to occur each year. If the state decides not to send the feds list of eligible sgos, no credits that year.
Redistribution of wealth is ok. As long as it benefits us.
I am impressed that despite Aguda political and board members helping kamala Harris. Trump didn’t punish the community but helped it

source