HB 1140
In CommitteeHouse
K-12 scholarship program
Establishing empowerED scholarships using educational savings accounts.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill establishes the empowerED scholarship program, a state-funded education savings account program that provides financial support to families for K–12 students to use at private schools, micro schools, for home-based instruction, or other approved educational expenses. The program prioritizes low-income students, students with disabilities, and those in underperforming schools, and is funded through legislative appropriations and a new business tax credit. It requires families to opt out of public school to participate and mandates strict use of funds for education-related purposes.
- Creates the 'empowerED scholarship program'—an education savings account (ESA) program for K–12 students in Washington, administered by the Student Achievement Council.
- Provides scholarships (up to $12,700 for students without disabilities, and more for students with disabilities) that families can use for approved education-related expenses such as private school tuition, tutoring, curriculum, therapies, and technology.
- Scholarship amounts are income-based: full awards go to families earning ≤55% of the state median family income; amounts are reduced on a sliding scale for higher-income families.
- Prioritizes applications from returning participants, siblings of participants, students with disabilities, low-income students, and students in struggling schools.
- Allows businesses to claim a 100% tax credit for contributions to the scholarship fund, up to $300 million in credits per calendar year.
- Requires families to withdraw students from public school to participate and sign a legally binding agreement to use funds only for approved educational expenses, with oversight via a state-managed debit card system.
Who is affected
- Families with K–12 students — Families with K–12 students may receive financial support (scholarships) to use for approved educational expenses, with priority given to low-income families, students with disabilities, and students in struggling schools. Families must withdraw their student from public school to participate and use funds only for qualifying education-related costs.
- Private schools — Private schools that choose to accept scholarship funds must comply with program rules but retain autonomy over admissions, curriculum, and religious practices. They are not required to alter their policies to participate.
- Businesses — Businesses that contribute to the scholarship fund can claim a full 100% tax credit against their business and occupation (B&O) or utility taxes, up to annual caps and limits.
- Public schools and school districts — Public schools may see changes in enrollment and funding allocation as students leave for other educational options, though the bill claims research shows public school outcomes often improve under such competition.
- Students with disabilities — Students with disabilities may receive higher scholarship amounts to cover additional educational services, therapies, and supports, with priority in the application process.
Pro/Con Analysis
Potential Benefits (5)
Low-income families (≤55% of state median family income) receive full scholarships (up to $12,700 or more for students with disabilities), which—combined with priority application status—can significantly reduce out-of-pocket education costs for households earning ≤$42,000/year (for a family of four), enabling access to private or specialized education otherwise financially out of reach.
FinancialPeopleRef: Sec. 4(3)(c), Sec. 4(4)(c)(i)-(iii)Students with disabilities receive enhanced scholarship amounts (up to ~$25,000 depending on the special education cost multiplier), enabling access to therapies, assistive technology, and specialized schools that may better meet their needs—especially valuable for families whose public schools lack adequate services, and where private placement is otherwise prohibitively expensive.
EducationPeopleRef: Sec. 4(3)(b)(ii), Sec. 4(4)(c)(i)The program includes strict use-of-funds requirements and state-managed debit card oversight, with audit authority for the state auditor—intended to prevent misuse of public funds and ensure accountability, giving families confidence that funds are used solely for education and reducing opportunities for fraud or waste.
Rights & LibertiesPeopleRef: Sec. 5(2)(c), Sec. 9(5)Priority for returning participants and siblings increases program stability and continuity for families already engaged, reducing administrative burden and encouraging long-term planning—particularly beneficial for families with multiple children who want consistent educational settings across siblings.
EducationLean peopleRef: Sec. 4(4)(a)-(b), Sec. 5(2)(b)The bill affirms parental rights to choose educational settings, including religious schools, and explicitly prohibits the state from requiring religious institutions to alter their creed or practices—aligning with recent U.S. Supreme Court precedent (Espinoza, Carson) and expanding educational autonomy for faith-based families.
Rights & LibertiesLean peopleRef: Sec. 6(1), Sec. 21(4)(s)
Potential Concerns (5)
The 100% business tax credit for contributions to the scholarship fund creates a direct revenue loss to the state, with a $300 million annual cap—effectively a corporate subsidy that reduces funds available for public education, infrastructure, and other public services. While framed as a “tax credit,” it functions as a direct appropriation to private education, disproportionately benefiting large corporations with high B&O tax liability (e.g., utilities, banks, manufacturers) that can fully utilize the credit, while small businesses often cannot.
FinancialIndustryRef: Sec. 4(3)(b)(i), Sec. 13Although the bill prioritizes low-income students, the sliding-scale scholarship structure caps at $12,700 for non-disabled students—well below the actual cost of many private school tuitions in Washington (which average $15,000–$25,000/year), meaning even many low-income families will need to pay significant out-of-pocket costs. This limits real access for the intended beneficiaries and shifts financial burden onto families who must supplement scholarships, while wealthier families face no barrier to full participation.
FinancialIndustryRef: Sec. 4(3)(c), Sec. 4(4)Requiring families to withdraw students from public school to participate eliminates the possibility of dual enrollment or part-time public school access—potentially isolating students with disabilities or those needing specialized support services (e.g., counseling, speech therapy, special ed) that may not be available in private settings, and reducing oversight of student well-being in non-public settings.
Public SafetyLean industryRef: Sec. 4(2), Sec. 5(2)(a)The bill explicitly prohibits state regulation of private schools beyond program compliance, including admissions, curriculum, and religious practices—meaning participating schools can legally discriminate on basis of religion, sexual orientation, gender identity, or disability status without state oversight, and families have no recourse if services are withheld or misused.
Rights & LibertiesIndustryRef: Sec. 6(2), Sec. 6(3)The bill includes students in “challenged schools” as a priority group, but the definition of “challenged schools” (per RCW 28A.657.020) is based on state assessment data and does not account for systemic underfunding or poverty concentration—potentially diverting resources from already-under-resourced districts without guaranteeing improved outcomes, and without requiring participating private schools to meet state academic standards.
EducationLean industryRef: Sec. 4(4)(c)(iii), Sec. 21(4)(s)
Who Is Most Affected
Families earning ≤55% of state median income may receive full scholarships, but many will still need to pay significant out-of-pocket costs for private school; families in rural or underperforming districts may benefit most, but those needing specialized services may find private options still inadequate without robust oversight.
Students with disabilities may gain access to therapies and specialized schools not available in public settings, but may lose access to legally mandated IEP services if they fully withdraw from public school, and private schools are not required to provide FAPE (free appropriate public education) under IDEA.
Large corporations (e.g., utilities, banks, manufacturers) with high B&O tax liability can fully utilize the 100% tax credit, effectively receiving a direct subsidy to private education; small businesses often cannot due to lower tax liability, limiting their ability to benefit meaningfully.
Public schools may lose per-pupil funding as students exit, especially in districts already under strain; while the bill claims research shows public school outcomes improve under competition, Washington has no empirical evidence that this holds true here, and enrollment loss may reduce course offerings and program stability.
Private schools (especially religious and specialized schools) gain access to new funding streams and students, but must comply with program rules (e.g., use-of-funds tracking); they retain autonomy over admissions and curriculum, but may face increased administrative burden and potential liability if funds are misused.