Keep Public Funds in Public Schools Act

On April 15, 2026, Senator Mark Kelly (D-AZ) introduced S. 4297, the Keep Public Funds in Public Schools Act. The bill would repeal federal tax credits for donations to scholarship granting organizations that fund private school tuition. The bill has been read twice and referred to the Senate Committee on Finance. With 32 cosponsors and a sole Democratic sponsor, the bill lacks bipartisan support in the 119th Congress where Republicans control both chambers. There is no companion bill in the House. The legislative path requires committee markup, floor debate, House passage, and Presidential action — all of which are distant possibilities or non-starters given current political dynamics. The bill contains no appropriation or authorization of federal funds; it is a revenue-side tax change that would reduce a specific tax expenditure. No publicly traded U.S. company derives material revenue from the federal tax credit mechanism for scholarship donations. Education management companies (e.g., $LRN, $STRA, $ATGE) whose private school operations could be indirectly affected by reduced scholarship funding are not directly exposed to the federal tax credit structure — state-level programs are the primary funding source for voucher/choice scholarships. The bill's impact on these companies' revenue streams would be indirect and minor even if enacted. The current legislative trajectory suggests no enactment in the 119th Congress. Action history shows only two procedural actions on the same day, indicating zero momentum. For retail investors, this bill is a non-event requiring no portfolio adjustments.