Kentucky lawmakers are moving to circumvent a recent state Supreme Court ruling that blocked funding for public charter schools, with the introduction of House Bill 1. The legislation, filed by Representatives Kim Moser and T.J. Roberts, aims to enable Kentucky residents to participate in a new federal tax credit program designed to support K-12 education, effectively offering an alternative funding pathway for school choice initiatives.
The impetus for HB 1 stems directly from the Kentucky Supreme Court’s decision on , which deemed state funding for charter schools unconstitutional. Within hours of the ruling, Moser and Roberts filed the bill, signaling a swift response from proponents of school choice. The proposed legislation would allow Kentuckians to take advantage of the federal Education Freedom Tax Credit, established under HR 1, which passed in July 2025.
The federal program, championed by President Donald Trump, provides a dollar-for-dollar tax credit of up to $1,700 for individual contributions made to qualified Scholarship Granting Organizations (SGOs). These SGOs, non-profit entities, then distribute scholarships to eligible K-12 students attending private schools. Crucially, states must actively “opt-in” to the program for their residents to participate.
“By participating in the Education Freedom Tax Credit, Kentucky students will not miss out on these scholarships, which would otherwise go to students in other states,” stated Representative Moser, highlighting the potential benefit of the program for Kentucky families. Representative Roberts echoed this sentiment, emphasizing the need for educational reform in the state and framing HB 1 as a means to overcome obstacles imposed by the Supreme Court.
The structure of the federal tax credit is designed to incentivize private donations to SGOs. Under HR 1, these organizations are defined as non-profits that receive contributions specifically for scholarships benefiting students in public, private, and home school settings. The funds can be used for a range of educational expenses, including tuition, tutoring, and exam fees.
As of , 23 states have already opted into the Education Freedom Tax Credit program, including Virginia, Colorado, and New Hampshire. Kentucky’s potential participation represents a significant development, particularly in light of the recent state court ruling. The bill’s passage would position Kentucky to capture a portion of the federal scholarship funds that might otherwise be allocated to other states.
However, the move is not without opposition. Concerns have been raised about the potential impact on public school funding and resources. Critics argue that diverting funds to private and charter schools could exacerbate existing inequalities within the education system. Laura Hartke, an advocate against school choice measures, expressed concern that HB 1 could lead to a decline in funding, educators, and students in public schools, stating, “You don’t destroy public education, you fix it.”
Jim Waters, a proponent of school choice, countered these concerns, arguing that the program focuses on funding students directly rather than bolstering a system. He believes the Supreme Court ruling was disappointing but remains optimistic about the prospects of HB 1, stating, “Let Kentucky opt into this — legislators should support this and there’s nothing anybody in Frankfort can do to stop it.”
The debate surrounding HB 1 underscores the broader national conversation about school choice and the role of public versus private education. The federal tax credit program represents a significant shift in federal policy, offering a new avenue for funding private education and potentially reshaping the educational landscape across participating states.
HB 1 has been assigned to the House Appropriations and Revenue Committee for further consideration. The committee will likely scrutinize the potential financial implications of the bill, as well as its alignment with the state’s overall education policy goals. The bill’s progress through the legislature will be closely watched by stakeholders on both sides of the school choice debate.
The success of HB 1 will depend on its ability to garner bipartisan support and address concerns about equity and funding. If passed, it would represent a significant step towards expanding school choice options for Kentucky families and leveraging federal resources to support K-12 education in the state. The legislation’s passage would also signal a willingness by Kentucky lawmakers to pursue alternative funding mechanisms in the wake of the Supreme Court’s decision on charter school funding.
