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Kentucky Lawmakers Override Beshear Veto to Join Federal School-Choice Tax Credit

The move channels a federal $1,700 donor credit through scholarship groups to fund student grants without new state appropriations.

Overview

  • The House voted 77-14-1 and the Senate 31-5 to override the veto, setting House Bill 1 on track to become law.
  • The measure taps the federal Education Freedom Tax Credit, offering donors up to $1,700 for contributions to Scholarship Granting Organizations that award K-12 scholarships.
  • Scholarships can cover private tuition, tutoring, internet access and textbooks, with supporters stressing funds go to families rather than directly to schools.
  • Legislative leaders signed the bill and sent it to the secretary of state, with implementation described as starting in 2027 under the federal program and oversight by Kentucky’s secretary of state.
  • Opponents cite a 2024 statewide rejection of diverting public funds and a recent Kentucky Supreme Court ruling on school funding, warning the policy undercuts public education despite income caps of 300% of area median income and a 10% SGO administrative limit.