President Donald Trump’s Big Beautiful Bill is poised to accelerate the privatization of the nation’s school systems — and private equity aims to cash in. By some estimates, the law’s new school voucher provision — which uses public funds to help parents pay for private school tuition — is expected to transfer anywhere from $4 billion to $51 billion to private schools and companies that contract with public school districts. That includes companies owned by private equity firms.
Thanks to the provision, starting in late 2026, individuals can contribute up to $1,700 to qualifying “scholarship-granting organizations” and receive a 100 percent tax credit in return, entirely bankrolled by the federal government. The organizations involved can award scholarships to families with incomes at or below 300 percent of the median area income (which in some places amounts to more than $350,000) to cover expenses such as tuition and school supplies.
No other cause — including children’s hospitals or disaster relief — provides such a reimbursement, awarding a tax credit roughly triple what taxpayers would receive from donating to other charitable organizations.
School voucher programs have been hotly debated since their inception. They emerged as a means to preserve Jim Crow–era race relations after Brown v. Board of Education ruled that separating public schools by race was unconstitutional. While supporters argue that vouchers increase education opportunities for families, opponents say that these programs drain funds from public schools while delivering worse academic outcomes and can promote religious indoctrination.
While the new school voucher program allows public school students to use the funds for things like transportation and school supplies, some experts worry that it still ultimately diverts public funds into private hands without significant upsides.
“There’s a lot of energy from private companies convincing…
Auteur: Brock Hrehor
