Kentucky may soon be eligible for a new federal educational program, as the House voted 79-17, with one abstention, to approve House Bill 1 on Tuesday.
The legislation would pave the way for Kentucky to opt into an educational funding program established in House Resolution 1, or the One Big Beautiful Bill Act, passed by the U.S. Congress last year, and comes just days after the Kentucky Supreme Court unanimously held a charter school funding bill adopted by state lawmakers was unconstitutional.
Rep. Kimberly Poore Moser, R-Taylor Mill, is the primary sponsor of the legislation. She said the bill would ensure Kentuckians don’t miss out on a federally funded opportunity.
“This measure would provide a significant tool for public schools to harness a federal tax credit to assist families and children access school resources,” Moser said. “It affirms our commitment to expanding educational opportunities and improving student outcomes.”
Under HB 1, Kentucky would be eligible to participate in the qualified elementary and secondary education scholarship federal tax credit program for individuals who make a qualifying contribution to a scholarship granting organization (SGO).
The legislation would grant Kentucky’s Secretary of State the authority to opt into the program on behalf of the state and oversee Kentucky’s participation. Under federal law, qualified participants could receive up to a $1,700 tax credit on donations to an SGO annually beginning in 2027.
SGO funds cannot be used for tuition, but SGO dollars could fund other scholarship opportunities for students in public, private and homeschool settings. The scholarships can be used for fees, tutoring, technology, transportation, special needs programs, instructional materials, school supplies and more, Moser said.
Moser noted HB 1 is constitutional, since the legislation does not allocate any state public dollars to fund SGO accounts.
Rep. Mary Lou Marzian, D-Louisville, spoke against the bill.
“The fear that this is the road to vouchers and charter (schools) is really a slap in the face to our teachers, our classified staff, who often work just for a paycheck for their health insurance,” she said. “I would love to take a step back and see what the full cost of this could be and how much money it’s going to put in the pockets of the very wealthy.”
If passed, Kentucky would join 27 other states that have opted into the program so far.
HB 1 now heads to the Senate.
Rep. Kim Moser is the primary sponsor of House Bill 1, which advanced out of the House on Tuesday. (LRC photo)
Bud Kraft
