HB 2444
In CommitteeHouse
Scholarship contributions
Requiring Washington state's participation in the federal tax credit program for contributions of individuals to scholarship granting organizations.
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 requires Washington State to join a federal tax credit program that encourages private donations to scholarship organizations for K–12 students. By participating, the state enables donors to claim federal tax credits for their contributions, helping fund scholarships for students to attend schools of their choice—including private or religious schools—while ensuring state compliance with federal reporting and participation rules.
- Requires the Department of Revenue to formally designate Washington’s participation in the federal tax credit program for education scholarships (Section 70411 of P.L. 119-21).
- Mandates annual renewal of state participation and timely notification to federal authorities, with the first notice due by April 1, 2026.
- Requires the Department of Revenue to send copies of participation notices to the governor, legislative education committees, superintendent of public instruction, and state board of education.
- Directs the department to adopt rules that align with federal requirements to maximize use of available federal tax credits.
- Includes a severability clause: if any part conflicts with federal law (e.g., conditions for receiving federal funds), that part becomes inoperative, but the rest of the law remains in effect.
Who is affected
- Families with school-age children — Families with K–12 students may gain access to private or parochial school scholarships funded by private donors, with donors receiving federal tax credits for their contributions.
- Scholarship-granting organizations — Organizations that manage scholarship funds for K–12 students must comply with new state reporting and participation requirements to access federal tax credit incentives.
- Department of Revenue — Must coordinate with federal authorities to ensure Washington remains eligible for federal tax credit funding and report annually to state officials.
- Governor, Legislature, Superintendent of Public Instruction, and State Board of Education — Must receive annual updates on Washington’s participation in the federal program and help ensure compliance with federal rules.
Pro/Con Analysis
Stronger case for concerns
Potential Benefits (2)
Families with school-age children — especially those with lower incomes or children with special needs — may gain access to private or religious school scholarships if private donors respond to the federal tax credit incentive. The federal tax credit (up to 25% of contribution, capped at $5,000 per donor) could motivate significant private giving, though actual scholarship amounts per student would depend on donor behavior and program design.
EducationPeopleRef: Sec. 1(2); Sec. 2(3)The bill ensures transparency and intergovernmental coordination by requiring the Department of Revenue to notify the governor, legislature, and education officials of Washington’s participation status annually, which supports accountability and enables legislative oversight — though it does not create new funding or regulatory authority.
Local GovernmentLean peopleRef: Sec. 2(2); Sec. 3
Potential Concerns (3)
The bill enables private donors to receive federal tax credits for contributions to scholarship-granting organizations that may fund religious or private schools, which could weaken the constitutional barrier against public funding of religious education under Article IX, Section 1 of the Washington Constitution — a provision that has been consistently upheld by the state Supreme Court. While the bill itself does not appropriate funds, its participation in a federal program that incentivizes private donations to schools may create legal vulnerability if courts interpret it as indirect public support for religious institutions.
Public SafetyRef: Sec. 1(2); Sec. 2(1)The bill does not establish or fund scholarships directly — it only facilitates donor eligibility for federal tax credits — meaning the actual availability and scale of scholarships depend on private fundraising and donor behavior, which is highly uncertain and likely limited. Without state funding or enforceable scholarship minimums, the program may fail to deliver meaningful benefits to families despite the legislative findings.
EducationRef: Sec. 1(2); Sec. 2(3)By relying on federal tax credits to incentivize private donations, the state may inadvertently reduce federal funding available for other K–12 education programs in Washington (e.g., Title I, IDEA), since federal education grants are often tied to overall state participation in education initiatives — potentially harming public schools that serve the majority of Washington students.
Local GovernmentLean peopleRef: Sec. 1(2); Sec. 2(3)
Who Is Most Affected
Families with school-age children — especially those seeking alternatives to their assigned public schools — may benefit if private donors contribute to scholarship organizations, but only if the scholarships are meaningful and accessible. Low-income families face additional barriers (e.g., application costs, transportation) even with scholarships.
Scholarship-granting organizations (SGOs) may see increased donations due to federal tax credits, but must comply with both federal and state reporting requirements. Smaller SGOs may lack resources to navigate complex compliance, while larger, well-funded SGOs (often faith-based) are better positioned to scale up.
The Department of Revenue must implement administrative tasks (notifying federal authorities, drafting rules, reporting to state officials) but faces no new budget or staffing appropriation. This adds administrative burden without new resources.
The governor and legislature gain oversight authority but no new funding or policy tools to ensure equitable scholarship distribution. The bill’s structure gives no guarantee that scholarships will reach underserved communities or that participating schools will be held accountable for academic outcomes.
Private donors who itemize federal taxes and earn above $150,000/year are most likely to benefit from the federal tax credit, as the credit is only valuable to those with federal tax liability exceeding the credit amount. This effectively subsidizes high-income donors’ school choice decisions at the expense of federal revenue.