HB 2632: The Bill and What It Means for Your School

According to the official bill summary, House Bill 2632 would terminate Pennsylvania's current EITC and OSTC scholarship tax-credit authority and replace it with a new Education Options Tax Credit program, a new scholarship-granting-organization framework, and a new restricted account called the Accountability for Diverted Tax Dollars account.

Schools that currently receive EITC and OSTC scholarships would see the program they rely on restructured. The scholarship organizations that fund those scholarships would operate under a new framework with new reporting and audit requirements, and participating private schools would face new compliance obligations.

Supporters of the scholarship program estimate House Bill 2632 would cut roughly $102 million from K-12 scholarship funding and put about 30,000 current scholarships at risk. Supporters also point to a new 2% tax on scholarship organizations and the elimination of the Economically Disadvantaged Schools program.

On June 22, 2026 the Pennsylvania House passed House Bill 2632 by a vote of 105 to 97. The bill now moves to the State Senate, and from there it could go to the Governor. Changing the program in the middle of a school year would disrupt students who are already enrolled and counting on their scholarships.