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H.R. 9289: Keep Public Funds in Public Schools Act of 2026

This bill would repeal two federal tax benefits related to scholarship-giving programs, starting generally for tax years ending after December 31, 2026.

What the bill changes

It would eliminate a federal tax credit for individuals who donate money to scholarship granting organizations. Right now, donors can receive a credit under Internal Revenue Code section 25F for certain contributions.
It would also remove a separate tax exclusion under section 139K, which currently lets certain scholarship-related amounts be excluded from gross income.
It makes conforming changes in the tax code by deleting references to those repealed sections.

Practical effect

In plain terms, the bill would end the federal tax advantage for donating to organizations that provide scholarships. That means people and entities that currently give to these organizations would no longer be able to claim the credit, and scholarship-related income treatment created by section 139K would no longer apply after the effective date.

When it would take effect

The repeal of the tax credit would generally apply to taxable years ending after December 31, 2026.
The repeal of the income exclusion would apply to amounts received after December 31, 2026, in taxable years ending after that date.