Seventeen organizations have filed declarations to participate in Kentucky’s new education scholarship program, state officials told lawmakers Wednesday, as public and private-school leaders described how House Bill 1 could help families afford more educational opportunities. 

This came during the Commission on Race and Access to Opportunity examination of HB 1, which secured Kentucky’s participation in the federal scholarship tax credit program. 

HB 1 passed both chambers easily and lawmakers overrode Gov. Andy Beshear’s veto in March. Sponsored by Reps. Kimberly Moser, R-Taylor Mill, and TJ Roberts, R-Burlington, HB 1 was carried in the Senate by Senate President Pro Tem David Givens, R-Greensburg. 

“We want every kid in the commonwealth to have people who believe in them as much as you all do,” commission co-chair Sen. Amanda Mays Bledsoe, R-Lexington, who led Wednesday’s meeting, told the educators.

Beginning in 2027, eligible taxpayers can receive a dollar-for-dollar federal income tax credit of up to $1,700 for qualifying cash contributions to listed scholarship-granting organizations, known as SGOs. Under the IRS’s proposed rules, married couples filing jointly could claim up to $3,400 based on each spouse’s qualifying contributions. The credit is nonrefundable, meaning it is limited to the taxpayer’s federal income tax liability. Unused credit may carry forward for up to five years. 

Those organizations award scholarships to eligible students to cover educational expenses. HB 1 does not appropriate money from Kentucky’s education budget, change the SEEK funding formula or reduce state General Fund revenue.

Bowling Green Independent Schools Superintendent Gary Fields said his district plans to partner with the fund, initially focusing on helping families afford dual-credit courses and Advanced Placement exams. These opportunities can help students earn college credit and prepare for careers while still in high school. “If it can help our kids, we’re going to do it,” Fields said.

Public-school students can get help with qualifying expenses, while eligible private-and home-school students can pursue support tailored to their educational needs.

Democratic governors in Colorado and New York have also embraced participation, citing opportunities to help public-school students. 

Federal requirements include income verification, scholarships for at least 10 students who do not all attend the same school and spending at least 90 percent of SGO income on scholarships. Eligible students generally must live in households earning no more than 300 percent of area median gross income, adjusted for family size.

Sen. Amanda Mays Bledsoe is co-chair of the Commission on Race and Access to Opportunity examination of HB 1. (LRC photo)