School Vouchers Explained: What the New Federal Program Means

Congress has passed the nation’s first federal school voucher–style program, set to begin in 2027. Supporters call it a landmark expansion of parental choice, while critics fear it will divert billions from public schools. Harvard Professor Marty West says the program raises important questions about the future of American schooling and even how the program will operate.

The new program, part of the “One Big Beautiful Bill Act,” is officially called the Educational Choice for Children Act. Although it isn’t a direct voucher, it will operate as a tax-credit program where individuals can receive up to $1,700 in credits for donating to nonprofit scholarship-granting organizations. These groups can then distribute scholarships for private school tuition, tutoring, transportation, or even special education services. Families earning up to 300% of their area’s median income are eligible, and states must opt in, giving governors control over implementation.

“What is clear, is that in any state that wants to do so, the program can be used to support private school choice, and that's what makes it significant,” West says. “It really does have the potential to turbocharge the movement to expand private school choice in the United States, which already had significant momentum at the state level.”

The idea of vouchers has a long and varied history in the U.S. tracing back to 1955 when economist Milton Friedman proposed funding education through competition rather than government-run schools. Early programs often focused on targeting low-income families, but as West explains, this shifted over time, especially in recent years as the pandemic accelerated private school choice options.

The research on vouchers is often mixed. As West points out, studies often showing modest academic gains, especially for disadvantaged students, and positive effects on civic outcomes and graduation rates. The need for further research on the effects of vouchers is needed.

If one thing is certain, politically, vouchers remain deeply divisive. “The issue of private school choice has for decades, been the one education policy issue that most cleanly divides Republican and Democratic elected officials,” West says. Going forward, West will be paying close attention to how and whether the new federal program is adopted throughout the country. “What will the governors of blue states decide? Will they opt into the program or will they not? If they don't, this will further extend a new phenomenon in American education really in the past several years-- --which is that we're starting to see a red state model of education delivery and a blue state model of education delivery,” he says.

In this episode, West shares the history of the voucher movement, what research tells us about its success, and whether this national policy will transform American education or further fracture it.