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By: Shira Miller
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.
How the Program Works for Yeshiva Families
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.
Revolutionary Tax Benefits for Community Supporters
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.
Addressing Long-Standing Inequities
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.
Implementation Timeline and Expectations
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.
Overcoming Historical Challenges
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.
A New Chapter for Jewish Education
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:
Reduced Financial Stress: Families can redirect money previously spent on tuition toward other needs like housing, healthcare, or saving for their children’s futures.
Educational Expansion: Schools can potentially expand programs, reduce class sizes, or enhance facilities with the increased affordability driving higher enrollment.
Community Growth: More affordable Jewish education may attract families to Orthodox communities and encourage higher birth rates among existing families.
Religious Freedom: The program affirms that parents’ fundamental right to choose their children’s education includes the right to meaningful financial support for that choice.
Key Differences Between House and Senate Versions
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:
Reduced Financial Stress: Families can redirect money previously spent on tuition toward other needs like housing, healthcare, or saving for their children’s futures.
Educational Expansion: Schools can potentially expand programs, reduce class sizes, or enhance facilities with the increased affordability driving higher enrollment.
Community Growth: More affordable Jewish education may attract families to Orthodox communities and encourage higher birth rates among existing families.
Religious Freedom: The program affirms that parents’ fundamental right to choose their children’s education includes the right to meaningful financial support for that choice.
Moving Forward
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.
Tips Tax Deduction
Senate: Up to $25,000 deduction for qualified tips, but phases out for incomes above $150,000 ($300,000 joint filers)
House: [No comparable provision mentioned]
Timeline: 2025-2028
Overtime Pay Deduction
House: Full deduction for overtime compensation up to $160,000 (2025-2028)
Senate: Maximum $12,500 deduction ($25,000 joint filers), phases out above $150,000/$300,000 income
Timeline: 2025-2028
Electric Vehicle & Clean Energy Credits
Both versions: End EV tax credits ($7,500 new, $4,000 used) after September 2025
Both versions: Eliminate home energy efficiency credits (solar, heat pumps, efficient windows) after December 2025
Section 199A Pass-Through Business Deduction
House: Makes permanent and increases from 20% to 23% starting 2026
Senate: Makes permanent but keeps at current 20% rate
Impact: Benefits contractors, freelancers, and small business owners
Moving Forward
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.