HB 2719
In CommitteeHouse
Foster care/scholarships
Establishing empowerED scholarships for foster care students 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
The bill creates the empowerED scholarship program to provide education savings accounts for Washington’s foster care students, allowing families to use state-funded scholarships for approved educational expenses at private schools, through tutoring, or via home-based instruction. It also creates a business tax credit to encourage private contributions and establishes oversight and reporting requirements.
- Creates the 'empowerED scholarship program' — an education savings account program for foster care students aged 5 to under 21.
- Provides scholarships of up to $12,700 per student (or up to $12,700 + special education cost multiplier for students with disabilities), adjusted annually for inflation starting in 2027.
- Allows parents/caregivers to use scholarship funds for qualified education expenses including tuition, tutoring, textbooks, therapies, technology, and transportation — but not for entertainment devices or non-educational goods.
- Requires participants to withdraw from public school and enroll in a private school or provide home-based instruction, and mandates use of funds only for approved expenses, with oversight via a state-managed debit card system.
- Establishes a tax credit for businesses contributing to the scholarship fund: 100% credit against B&O taxes, capped at $300 million per year, with a first-come, first-served application process.
Who is affected
- Foster care students (including those who have aged out) — Foster care students aged 5 to under 21 who are in state custody, tribal dependency proceedings, or recently aged out of foster care may receive scholarships to help cover education-related costs. They must leave public school enrollment to participate and use funds only for approved educational expenses.
- Parents and caregivers of eligible students — Parents, foster parents, guardians, or legal custodians of eligible students must apply on behalf of the student, sign a legally binding agreement, use scholarship funds only for approved expenses, and maintain documentation for audits.
- Private schools — Private schools that choose to accept scholarship funds may enroll eligible students using those funds for tuition and other approved expenses, without being required to change their policies or curriculum to meet state regulations beyond program requirements.
- Businesses contributing to the scholarship fund — Businesses that contribute to the scholarship fund may claim a 100% tax credit against their business and occupation (B&O) taxes, up to $300 million in credits per year.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The scholarship provides up to $12,700 (plus disability multiplier) per foster student—roughly equal to the state’s per-pupil funding (~$12,500 in 2024–25) and significantly above average for low-income students—offering financial flexibility to address trauma, therapy, tutoring, and school stability for a uniquely vulnerable group.
EducationPeopleRef: Sec. 4(3)(a); Sec. 4(3)(b)(ii)Priority stacking (re-enrolling students first, then siblings, then others) and the requirement to use funds only for qualified education expenses—enforced via state-managed debit card—reduce fraud risk and ensure targeted support reaches foster youth, not general education spending.
EducationPeopleRef: Sec. 4(4); Sec. 5(2)(c)The program is designed to supplement—not replace—existing foster education supports (e.g., Passport to Careers, foster care scholarship endowment), and best-interest determinations explicitly include the availability of the scholarship as a factor—encouraging coordinated, student-centered planning.
EducationPeopleRef: Sec. 7; Sec. 22(4)(s)The tax credit structure may incentivize private businesses—especially those with B&O liability in retail, manufacturing, or services—to contribute to the fund, potentially expanding private investment in education without raising taxes on individuals.
Business & EmploymentLean peopleRef: Sec. 15(4)(c); Sec. 16(3)Mandatory annual audits by the state auditor and independent accounting firm—plus real-time debit card oversight—create transparency and accountability mechanisms that reduce misuse and protect public funds, supporting program integrity.
Public SafetyPeopleRef: Sec. 10(5); Sec. 9(2)(f)
Potential Concerns (5)
The 100% B&O tax credit for business contributions—capped at $300 million annually—creates a regressive subsidy that disproportionately benefits large corporations with high B&O tax liability, as only businesses with sufficient tax liability can fully utilize the credit (refunds not allowed, per Sec. 15(5)), and the first-come, first-served cap favors well-resourced, early-applying firms.
Business & EmploymentIndustryRef: Sec. 14; Sec. 16The bill explicitly shields private schools from state regulatory oversight beyond program-specific requirements, including freedom to maintain discriminatory admissions, creed, or curricular policies—potentially undermining equity and accountability for students receiving public funds, especially vulnerable foster youth.
Rights & LibertiesIndustryRef: Sec. 6(2); Sec. 6(3)Mandating withdrawal from public school to participate in the program removes students from existing IEP/504 protections and continuity of services, which may harm students with disabilities who rely on public school special education infrastructure—even if the scholarship amount is generous.
EducationLean peopleRef: Sec. 5(2)(a)The $300 million annual cap on tax credits, combined with a first-come, first-served application process, creates uncertainty and inequitable access for small businesses and rural firms that may not have legal or compliance teams to submit applications early—concentrating benefits among large, well-connected corporations.
FinancialLean industryRef: Sec. 15(5); Sec. 16(1)The program’s funding relies on legislative appropriations and a $300M annual tax credit cap, but no dedicated or increased revenue source is specified—risking future budget strain or reallocation from other K–12 or foster care programs, especially if participation exceeds projections.
Local GovernmentLean peopleRef: Sec. 11; Sec. 16(3)
Who Is Most Affected
Foster youth aged 5–20 in state custody or recently aged out may gain access to tailored educational services (e.g., trauma-informed tutoring, therapies, private schooling) that public schools have not provided—potentially improving graduation and postsecondary outcomes. However, they lose automatic access to IDEA protections if they withdraw from public school.
Parents and caregivers gain flexibility to choose private or home-based instruction and use funds for therapies, technology, and transportation—but must forgo public school services, document all expenses, and risk losing funds if they terminate participation early.
Private schools can enroll foster students with state-funded tuition, but are not required to meet state curriculum, staffing, or special education standards—potentially increasing enrollment and revenue without added regulatory burden.
Large corporations with high B&O tax liability can offset up to $300M in credits over time, especially if they apply early—while small businesses may miss the window or lack tax liability to fully use the credit, limiting equitable access.