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President Bush's tax-cut bill, enacted by the U.S. Congress last spring, included a provision which allows parents to save money tax-free to use for private elementary and secondary education for their children. The "education savings account" allows contributions up to $2,000 per year.
The U.S. House included the tax break to parents as part of the tax bill, but rejected another school choice option, vouchers, when it passed its version of an education bill.
The U.S. Senate recently approved legislation that requires annual math and reading tests for millions of schoolchildren, while rejecting a number of school choice amendments.
The Senate accepted a proposal to add $525 million to expand charter schools through competitive grants to communities with low-performing public schools in order to give families an alternative.
Congress will take up these issues again in the fall.
