The program Use the Federal Fiscal Code Sacrifice coupons that students can use to assist secular or religious private schools, as well as to qualify the success of education.
“Parents must decide where their children go to school. This bill helps them to do that,” said Senator Bill Cassidy, Republican A statement After the camera approved the Senate changes.
The Senate changed the proposal of the Original Representatives Chamber, now requires states to opt for the program, preventing it from becoming a truly national program. The blue states where coupons have little support may not participate, and also in more conservative states, support is mixed – Voters recently rejected Voting measures of school coupons in Kentucky and Nebraska.
That can be, in part, to groups that coupons programs can saps public schools of local resources, because when students leave a public school system, they take funds with them.
“This is not just a political failure: it is a moral misfortune,” Becky Pringle, president of the National Education Association, the largest teacher union of nations, union, Said in a statement. “Trump and the Republicans of Congress undermined our public schools and each student in them.”
The new federal program will reward people who make charitable donations to what is known as scholarship organizations (SGO). Your reward: a dollar fiscal loan per dollar.
The SGO wishes to distribute the money donated in the form of scholarships so that students use them in a variety of expenses, including enrollment, books and certain education costs at home.
Unlike some of the countries Earlier” narrow Coupon programs, this federal version won will limit the low -income families. On the other hand, it will be available for households that gain 300% of the average gross income of a given area. Then, in an area of the country where the medium gross income is $ 75,000, any child in a home that is less than $ 225,000 could qualify.
The cost of a program like this is difficult to measure, especially with the subscription warning that leaves the states to decide if they will participate. However, the joint non -partisan tax committee estimates that coupons could cost the federal government almost $ 26 billion in tax revenues lost during the next decade.
MEDICAID CHANGES AND K-12 SCHOOLS
More than 37 million children are enrolled in Medicaid or in the Child Health Insurance Program (CHIP), a federal program that provides affordable health insurance to pregnant mothers and children living just over.
The “Big Big Beautiful Bill” presents strict chosen requirements for Medicaid, including the most frequent choice verification and a first national work requirement, the parents of children aged 13 and less are exempt.
It also reduces federal health expenditure by approximately $ 1 billion of approximately one decade, according to the Non -partisan Congress Budget Office (CBO).
As Npr It has previously Reported, State experiments with work requirements Have a leg full of administrative problems, such as the loose coverage of eligible affiliates about paperwork problems and budget excesses.
How will all this affect student K-12?
“When there is more bureaucracy, we know that it is more difficult for families,” said Joan Alker, head of the Children and Families Center of the University of Georgetown, to NPR before the bill would be approved.
The CBO estimates that almost 12 million people will lose their health coverage as a result of changes in the final bill.
Medicaid is also the fourth largest source of funds for K-12 schools, Chordination for the Association of School Superintendents (AASA). Schools receive money to help provide services For low -income students enrolled in Medicaid or Chip, as well as for students with disabilities.
In A survey Published earlier this year, AASA asked more than 1,000 leaders of the School District of the 50 States and the Columbia district how they use Medicaid funds. The vast majority of districts (86%) said that Medicaid funds support support wages for school health personnel, such as nurses, psychologists, occupational therapists and physiotherapists and speech pathologists. More than half said Medicaid helps finance mental and behavioral health services in school districts.
When asked how their districts would deal with the loss of funds, 80% or respondents predicted layoffs of school health personnel and more than half anticipated a reduction in services and resources for students.
The cuts to food assistance would also affect the election for free school meals
Supplementary Nutritional Assistance Program (SNAP), which, according to the United States Department of Agriculture, helps to pay edible for groceries for groceries for groceries More than 15 million children In the United States, it will also undergo significant changes in the coming years.
The “Big Big Beautiful Bill” reduces the number of people who are exempt from SNAP’s work requirements. Katie Bergh, a senior policy analyst for food assistance at the Budget Priorities Center and Policies, told NPR before the bill was approved: “Research has shown that this has shown that that [work requirements don’t] Increase the use of people. It does not increase your profits. Simply cut Snap people and let them hungry. “
When children lose access to Snap’s benefits, they also lose their automatic inscription in free meals at school.
The new law will reduce around $ 186 billion SNAP for 10 years, according to the CBO. Bergh organization estimates“Around 1 million children would see food assistance to their families cut substantially or finished.”
For the first time in Snap’s history, the Federal Government is also changing part of the cost to states.
If this change in financing, from the federal government to the states, is a good idea is “debatable”, Kevin Corinth, who studies the programs of poverty and security networks at the Institute of American Companies of Conservative Inclination, said before before before the before. He thought he pointed out an upward potential: he could force states to have “more skin in the game.”
A possible inconvenience CBO complianceis that some states “would modify benefits or eligibility or possible license [SNAP] In total due to the increase in costs. “
An increase in the fiscal credit of the children
The “One Big Beautiful Bill” comes with a modest increase in fiscal credit for parents. The fiscal credit of the children, now limited to $ 2,000 per child, will increase to $ 2,200. However, it requires at least one father and all qualified children to provide valid social security numbers.
And, as with the current child tax credit, this expansion would only be aviable for families that obtain sufficient income to qualify and, therefore, are not available for low and moderate income families.
What to know about great changes in federal loans for students
The law Press the Reset button On the federal policy of student loans.
For postgraduate students, the new loan limits will make it difficult for lower and medium income borrowers to attend more expensive postgraduate programs. The old man Grad Plus programWHICK ALLOWED STUDONTS TO BORROW UP TO THE COST OF THES GRADUATE SCHOOL PROGRAM, Will Be Shuttered On July 1, 2026. AFTER THAT, GRANUATE STUDONTS ‘BORROWING WILL BE CAPPED AT $ 20,500 A YEAR WITH A Big Limit of $ 1,000, a Big Limit of $ 1,000, at $ 1,000, at $ 1,000, at $ 1,000, at $ 1,000, at $ 1,000 $ 100,000 or $ 1,000 or $ 1,000.
The borrowers working for a professional postgraduate degree (that is, the Law School or the Law School) will have their loan limited to $ 50,000 per year, and their life limit increased from $ 138,500 to $ 200,000.
Parents and caregivers who use more loans to help students pay the university will also see new loan limits. They will be limited to $ 20,000 a year and, together, to $ 65,000 per child.
The law also establishes a new loan limit for life, for undergraduate and Postgraduate loans, at $ 257,500 per person.
Republicans agreed to make great changes in reimbursement plans, eliminating most of the subject, including the generous Biden-Ire rescue plan.
After July 1, 2026, the new borrowers will have only two reimbursement options: 1.) A new income -based plan that requests the borrowers to pay at least $ 10 per month and offers loan cancellation after 30 years of debt debt payment of payment of payment of 30 years, the longer the reimbursement window.
Major and current borrowers will have some more options, at least for the moment, which will undoubtedly cause confusion between borrowers and loan service companies that have to make sense of all these changes. You can find a more detailed explanation of those Gentleman.
Changes in Pell subsidies for low -income university students
The bill expands Pell subsidies, which help low -income students to pay the university, to include job training programs, which is a victory for community conferences that sacrifice a variety or certificate programs. It also modifies eligibility for all Pell recipients: As of July 2026, students who have a complete scholarship will no longer be eligible to collect Pell subsidies. The bill also completed purposes on Pell Grant existing deficit.
A liability earnings test for conferences
To encourage conferences to provide a good return on investment, the bill connects the access of schools to federal loans for students with how much their graduates earn.
If an undergraduate program fails the profit test, which means that their students earn less than some with a secondary school diploma, could lose access to federal loans. An analysis shows that this would have more Impact on the two -year associate title Programs, Federal Data of Thought shows The students of the Community University depend less on federal loans for students.
The measure follows the steps of a Similar regulation known as paid employment Rule that was developed by the administration of Obama and traveled under Biden.
The final version of this new responsibility policy does not go so far How did the house version -That draft included a shared risk plan where universities would pay a fine based on federal loan debt that their students do not pay.
A higher tax in university endowermens
The conferences with endowments will now be taxed at a high rate.
The bill increases the tax rate of 1.4% to 8%, depending on the university endowment.
Harvard University’s endowment, which is currently fighting multiple Legal Battles Against the Trump administration, Totals of more than $ 52 billion. Based on the formula of the new law, that places Harvard in the winner of taxes of greater endowment, for institutes with an endowment of more than $ 2 million per national student.
There is a size for small private conferences: Ferwer institutions of 3,000 students are exempt from the tax. The previous exemption was 500 students.
