United States HR 9289: Keep Public Funds in Public Schools Act of 2026

Summary

This bill repeals two tax provisions that allow individuals to reduce their tax liability by making contributions to scholarship granting organizations. The bill affects taxpayers who currently claim tax credits or exclude income related to donations to these scholarship organizations, eliminating these tax benefits starting in 2027. The legislation is titled the "Keep Public Funds in Public Schools Act" and reflects concerns about directing tax incentives away from private scholarship programs.

Bill Text

I 
119THCONGRESS 
2
DSESSION 
H. R. 9289 
To   amend   the   Internal   Revenue   Code   of   1986   to   repeal   the   tax   credit   
for  contributions  of  individuals  to  scholarship  granting  organizations,  
and for other purposes. 
IN  THE  HOUSE  OF  REPRESENTATIVES  
JUNE11, 2026 
Ms.  M
OOREof  Wisconsin  (for  herself,  Ms.  BONAMICI,  Mr.  FROST,  Mrs.  GRI-
JALVA,  Mr.  POCAN,  Mr.  THOMPSONof  California,  Mr.  DOGGETT,  Mr.  
L
ARSONof   Connecticut,   Mr.   DAVISof   Illinois,   Ms.   SEWELL,   Ms.   
D
ELBENE,  Ms.  CHU,  Mr.  BEYER,  Mr.  SCOTTof  Virginia,  Ms.  ANSARI, 
Ms.  B
ROWNLEY,  Ms.  BUDZINSKI,  Ms.  BYNUM,  Mr.  CARSON,  Mr.  CASAR, 
Ms.  C
ASTORof  Florida,  Ms.  CLARKEof  New  York,  Mr.  CLEAVER,  Mr.  
C
LYBURN,  Mr.  COHEN,  Ms.  CRAIG,  Ms.  DEGETTE,  Ms.  DELAURO,  Mr.  
D
ESAULNIER, Ms. DEXTER, Mrs. DINGELL, Ms. ESCOBAR, Mr. FIGURES, 
Mrs.  F
OUSHEE,  Mr.  GARAMENDI,  Mr.  GARCI
 ́
Aof  Illinois,  Ms.  GARCIAof 
Texas,  Mrs.  H
AYES,  Ms.  NORTON,  Mr.  HUFFMAN,  Mr.  IVEY,  Mr.  JACK-
SONof  Illinois,  Ms.  JAYAPAL,  Mr.  JOHNSONof  Georgia,  Ms.  KELLYof 
Illinois,  Mr.  K
HANNA,  Mr.  KRISHNAMOORTHI,  Ms.  LEEof  Pennsylvania,  
Mr.  M
ANNION,  Ms.  MATSUI,  Mrs.  MCBATH,  Ms.  MCBRIDE,  Ms.  MCCOL-
LUM,  Mr.  MCGOVERN,  Mrs.  MCIVER,  Mr.  MENEFEE,  Ms.  OMAR,  Ms.  
P
INGREE,  Mr.  QUIGLEY,  Mr.  RASKIN,  Ms.  SALINAS,  Ms.  SCANLON,  Ms.  
S
CHAKOWSKY,  Ms.  SIMON,  Mr.  STANTON,  Mr.  TAKANO,  Mr.  THOMPSON 
of  Mississippi,  Ms.  T
LAIB,  Ms.  TOKUDA,  Mr.  TONKO,  Ms.  UNDERWOOD, 
Ms.  W
ASSERMANSCHULTZ,  Ms.  WILLIAMSof  Georgia,  Ms.  WILSONof 
Florida,  Ms.  S
A
 ́
NCHEZ,  and  Mr.  MOULTON)  introduced  the  following  bill;  
which was referred to the Committee on Ways and Means 
A  BILL  
To  amend  the  Internal  Revenue  Code  of  1986  to  repeal  
the  tax  credit  for  contributions  of  individuals  to  scholar-
ship granting organizations, and for other purposes. 
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2 
•HR  9289  IH
Be  it  enacted  by  the  Senate  and  House  of  Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This  Act  may  be  cited  as  the  ‘‘Keep  Public  Funds  4
in Public Schools Act of 2026’’. 5
SEC.  2.  REPEAL  OF  TAX  CREDIT  FOR  CONTRIBUTIONS  TO  6
SCHOLARSHIP GRANTING ORGANIZATIONS. 7
(a) T
AXCREDIT.— 8
(1) I
N  GENERAL.—Subpart A of part IV of sub-9
chapter  A  of  chapter  1  of  the  Internal  Revenue  Code  10
of 1986 is amended by striking section 25F. 11
(2) C
ONFORMING  AMENDMENTS.— 12
(A)  Section  25(e)(1)(C)  of  such  Code  is  13
amended  by  striking  ‘‘25D,  and  25F’’  and  in-14
serting ‘‘and 25D’’. 15
(B)  The  table  of  sections  for  subpart  A  of  16
part  IV  of  subchapter  A  of  chapter  1  of  such  17
Code  is  amended  by  striking  the  item  relating  18
to section 25F. 19
(b) E
XCLUSIONFROMGROSSINCOME.— 20
(1)  I
N  GENERAL.—Part  III  of  subchapter  B  of  21
chapter  1  of  the  Internal  Revenue  Code  of  1986  is  22
amended by striking section 139K. 23
(2)  C
ONFORMING   AMENDMENT.—The  table  of  24
sections  for  part  III  of  subchapter  B  of  chapter  1  25
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3 
•HR  9289  IH
of  such  Code  is  amended  by  striking  the  item  relat-1
ing to section 139K. 2
(c) E
FFECTIVEDATE.— 3
(1)   I
N   GENERAL.—Except   as   otherwise   pro-4
vided  in  this  subsection,  the  amendments  made  by  5
this  section  shall  apply  to  taxable  years  ending  after  6
December 31, 2026. 7
(2)   E
XCLUSION    FROM    GROSS    INCOME.—The 8
amendments  made  by  subsection  (b)  shall  apply  to  9
amounts  received  after  December  31,  2026,  in  tax-10
able years ending after such date. 11
Æ 
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