House Dems Gut EITC

House Democrats Lead Charge to Gut Educational Opportunity

Harrisburg, Pa., June 22, 2026—Today, the Democrat-controlled Pennsylvania House passed HB 2632 with a vote of 105 to 97. 

Although House Democrats amended the bill after widespread public opposition, the legislation still targets Pennsylvania’s scholarship programs with unreasonable taxes, mandates, and bureaucratic burdens that threaten educational opportunity for thousands of students. The bill will now be sent to the state Senate for consideration.

If enacted as amended, this bill would cripple Pennsylvania’s Education Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs, limiting the program’s reach—including $13.6 million from students to fund state government bureaucrats and cutting supplemental scholarships for over 40,000 low-income students in economically disadvantaged schools. 

Demand for school choice scholarships is at an all-time high, with nearly 70,000 students being turned away due to existing program caps in the 2023-24 school year. 

Notably, House Democrats have proposed these scholarship cuts while Gov. Josh Shapiro has yet to decide on the state’s participation in the federal scholarship tax credit.

President & CEO of the Commonwealth Foundation, Andrew Lewis, issued the following statement in response: 

“With this vote, the Democrat-controlled House have declared their intention to gut educational choice for families. 

“It’s disheartening to see House Democrats, led by Gov. Josh Shapiro, cater to anti-school-choice special interests, rather than the needs of Pennsylvania students across the state.

“Families shouldn’t spend their summer wondering if their child’s educational future will disappear before the next school year begins. Gov. Shapiro and House Democrats have created mass chaos with their cruel legislation. 

“We anticipate the state Senate will reject these devastating reductions and protect
scholarship programs, which have provided life-changing opportunities for more than one million Pennsylvania students, but families need more educational options.

“To deliver them, however, Gov. Shapiro must get off the fence on educational opportunities like the federal scholarship opt-in.”

Chief Policy Officer of the Commonwealth Foundation, Nathan Benefield, issued the following statement in response:

“This move by House Democrats is an assault on educational opportunity. And sadly, the real victims are Pennsylvania’s students.

“The amended bill undermines educational options for tens of thousands of students, limiting participation and stifling educational providers.

“HB 2632 cuts tax credit levels, eliminates supplemental scholarships, ties student eligibility to unrelated Democrat policy priorities, and attempts to intimidate donors, schools, and parents.

“Shame on those who voted to strip transformative options away from Pennsylvania’s most vulnerable students. Pennsylvania’s 200,000 students stuck in failing schools, and the 70,000 students left on scholarship waiting lists deserve better. 

“We urge lawmakers to stand up for Pennsylvania students, reject these despicable reductions, expand educational opportunity through scholarship programs, and opt the state into the federal scholarship tax credit.”

###

Media Contact

Giana DePaul

gmd@commonwealthfoundation.org

(215) 859-0384