(Updated to include comments from opponents and supporters)
The Kansas House on Thursday agreed to expand a state program intended to encourage school choice by awarding tax credits for donations to private school scholarships.
The House voted 70-49 to lift a $10 million yearly cap on state tax credits to entice businesses and individuals to donate money to a scholarship program for private schools.
The bill passed 14 votes short of the 84 needed to override a veto. There were six lawmakers absent and not voting, including two Democrats.
The bill now goes to the Senate.
The bill drew opposition from public education advocates, who renewed their criticism of the current law, which they say uses tax dollars to subsidize private schools.
While taxpayers may not directly put money into the program, opponents say the tax credits affect the state budget.
They said the state should not expand the tax scholarship program at a time when the state isn’t fully funding special education in public schools.
“You will hear we’re not using any taxpayer dollars. Whatever,” said Democratic state Rep. Linda Featherston of Overland Park.
“If money is not going into the state general fund…it is not available for special education, it is not available for property tax relief, it is not available for affordable child care, it is not available for affordable housing,” Featherston said.
Supporters of the bill said it was about giving students a chance to find a better fit for their education.
They said the scholarships give less affluent families across the state a chance to send their children to a school of their choice.
“We were greatly encouraged by the vote on the House floor today,” said Chuck Weber, executive director of the Kansas Catholic Conference.
He said lawmakers are learning that the scholarship program “can be a profound game changer for the parents of Kansas public school kids who need and deserve additional educational tools, including special education, extra tutoring and much more.”
The bill expands the state cap for those tax credits to $20 million a year after the current $10 million ceiling was reached in 2025.
If it’s determined that the amount of credits exceed 75% of the new limit, the cap would be increased by 25% for the succeeding year to a maximum of $30 million.
The credit is equal to 75% of the contribution made to a scholarship granting organization.
Eligibility for the state program includes students with an annual family income that is less than or equal to 250% of the federal poverty level.
The program has been operating in Kansas since the 2015-2016 school year.
The scholarship can’t exceed $8,000 per eligible student for each school year and must cover all or a portion of the costs of tuition, fees and expenses of a qualified school.
A report from the state education department shows that 2,794 students were found to be eligible for a scholarship since the start of the program in the 2015-16 school year.
Of those 2,794 eligible students, 1,112 students were from the Wichita School District, 891 students were from Kansas City and 175 were from Topeka, the report showed.
Since the beginning of the program, 6,848 student scholarships have been awarded totaling almost $26 million through the 2023-24 school year, the report shows.
Fiscal analysts estimate the expanded tax credit would cost the state about $622,000 in fiscal year 2027, $1.6 million in fiscal year 2028 and $2.7 million in fiscal year 2029.
The Revenue Department estimates that approved tax credits are not expected to reach the $20 million cap until fiscal year 2034.
The bill also allows Kansans to opt in to a new federal tax credit approved by Congress last year to encourage school choice in elementary and secondary education.
Separately, the bill would allow the state to participate in a new program that allows individuals to claim up to $1,700 in federal tax credits for contributions to organizations that give scholarships to students to attend private schools.
Eligibility for scholarships is limited to students whose family income is below 300% of their area median income.
Testimony from a recent hearing on the bill indicated that in 2025, the area median gross income for Kansas was $97,800, meaning students could qualify for scholarships with family incomes up to $293,400.
The scholarships can only be used for certain expenses, including:
- Tuition, fees, books, supplies, other equipment, academic tutoring and special needs services for students enrolled in an elementary or secondary school that is public, private or religious.
- Room and board, uniforms, transportation, and supplementary items and services if those expenses are required or provided by a public, private or religious school.
- Computers, equipment or internet access and related services if used by the student or their family while the student is enrolled in elementary or secondary schools.
Lawmakers were told that residents in states that don’t participate in the program can still make donations and claim the federal tax credit, but those contributions would go to scholarship-granting organizations in other states.
So far, at least six states — Idaho, Nevada, Indiana, Mississippi, Georgia and Montana — have officially opted into the federal tax credit program.
Education Week asked the governors of all 50 states and the mayor of Washington, D.C., whether they would opt into the federal program.
As of Jan. 23, the magazine reported that 20 governors said they plan to opt into the federal tax-credit scholarship, and four have said they won’t participate.
Twenty-six governors and the mayor of the District of Columbia had not decided or announced decisions, according to Education Week’s analysis.
