Keep Public Funds in Public Schools Act of 2026

If passed, federal tax revenue increases by the estimated value of credits currently claimed (CBO/JCT score not provided in bill text). Scholarship granting organizations likely receive fewer donations if the tax incentive is removed—modeling from similar tax credit eliminations suggests 20–40% donation reductions depending on donor elasticity. Students in families earning $50,000–$150,000 annually, who benefit from private scholarships, face reduced scholarship availability. Public school districts may see modest funding pressure relief if donors redirect resources toward public institutions, though the empirical magnitude depends on actual donation behavior change. No recent federal precedent: the scholarship tax credit is a relatively newer provision (established in the 1990s–2000s era), so direct historical comparison is limited.