Written by Christine Cooke Fairbanks
May 27, 2025
- Just last week, the United States Supreme Court handed down a vote with the ultimate effect of preventing religious charter schools from being created; at the same time, the Trump administration has added more funding for charter schools.
- There’s movement on a federal scholarship tax credit while more states adopt private school choice policies.
- The federal government’s policies and states with more private education choice experience should help make it easier for more states to join the movement through complementary legislation and on-the-ground lessons learned.
If you’re paying attention to public policy, you know that education choice – particularly state-sponsored private education choice – is a top issue. Current legal challenges to new state programs and other hurdles have not stopped the momentum from moving forward.
Below are key updates on the education choice front.
National and federal updates
Just last week, the United States Supreme Court handed down a much-anticipated vote that effectively prevents the creation of religious charter schools. The court was split 4-4 (with Justice Amy Coney Barrett recused), meaning the lower court decision to block the religious charter school remains in effect. Even education choice supporters were divided on whether to allow the creation of religious charter schools. I previously coauthored an op-ed with my Sutherland colleague Bill Duncan outlining some skepticism about the constitutionality of religious charter schools. The idea of religious charter schools may advance education choice initially but could generate religious liberty issues and backlash against charter schools.
That said, the Trump administration is throwing support behind charter schools with more federal dollars. Notably, while the administration is cutting funds for many programs within the U.S. Department of Education, Secretary McMahon announced on May 16th that the administration is increasing funding for the Charter Schools Program by $60 million this year and in the future. The department is also creating a new grant program to help highlight best practices for innovative charter schools.
As of last week, Utah Congressman Burgess Owens’ federal scholarship tax credit bill has a companion bill in the Senate, thanks to Texas Senator Ted Cruz introducing the Universal School Choice Act. It’s similar to the bill that Rep. Owens co-sponsored at the beginning of the year, the Educational Choices for Children Act (ECCA). That bill already has many co-sponsors, and President Trump has signaled he would sign it. These efforts would create a federal tax credit for individuals or businesses that donate to organizations that provide scholarships to families to use in various ways for a child’s education. Passing this federal law would be a significant moment in the private education choice movement, adding to the sea change already being seen at the state level.
Alongside the administration’s ongoing communication to states about how to use federal funds flexibly, it clearly intends to put its political weight behind education choice.
In the states
Texas earned a lot of attention when, earlier this month, Governor Greg Abbott signed a bill that created the state’s first education savings account program. The legislature appropriated $1 billion to the program, meaning about 90,000 students can get the $10,500 scholarship (with higher amounts for students with disabilities). The massive program goes into effect in the school year 2026-27. This was a big win for Texans – one that the nation has long anticipated – after a long battle to bring such a program to the state.
Earlier this year, Idaho passed a refundable tax credit program –up to $5,000 for each student (again, more for those with disabilities). Likewise, this can be spent on more than just private school tuition.
This means that over two-thirds of the nation – 36 states (plus D.C. and Puerto Rico) – now have education choice programs.

What’s next for Utah?
Utah is among those states that have private school choice legislation, though its universal education savings account is currently being challenged in the courts. Still, the fight is far from over, and adjustments can be made to the program even if it is found unconstitutional on appeal. Utah’s commitment to education choice should include expanding funding for the program so more families can access it and ensuring the program manager is family-friendly and responsive. The better the experience for families, the stronger the support for the program in the future.
Likewise, the state can boost access to data about open enrollment in its school districts so parents can more easily understand their options. Furthermore, the state can expand access to and clarity of curriculum at the classroom level (through teacher incentives) so parents can make informed decisions.
Conclusion
Education choice is here. As states continue to push for these programs, the federal government and states with more experience should help make the landscape easier to join through complementary policies and on-the-ground lessons learned. We believe this will happen, and that’s good for families nationwide.

Insights: analysis, research, and informed commentary from Sutherland experts. For elected officials and public policy professionals.

- Just last week, the United States Supreme Court handed down a vote with the ultimate effect of preventing religious charter schools from being created; at the same time, the Trump administration has added more funding for charter schools.
- There’s movement on a federal scholarship tax credit while more states adopt private school choice policies.
- The federal government’s policies and states with more private education choice experience should help make it easier for more states to join the movement through complementary legislation and on-the-ground lessons learned.
Read More
Trump’s tariffs: path to working-class prosperity, or protectionist misstep?
Are they a path to restoring working-class prosperity, or a protectionist misstep that ultimately hurts American consumers?
Congress should follow Utah’s lead on protecting kids online with app store law
A new bill to regulate app stores has been introduced in Congress.
Sutherland releases new report on the contributions of religion to mental health
Sutherland Institute released a new research publication on the social value of religion related to mental health.