S.C. General Assembly Reaches Deal On Educational Freedom
Wednesday, April 16 was a historic day for the school choice movement in South Carolina.
After weeks of public silence and private negotiations, we have now finally seen the resulting amendment on S.62, the bill to restore South Carolina’s ESA program—the Education Scholarship Trust Fund. That amendment was presented in the Senate by Education Chairman Greg Hembree and adopted by a 29-13 vote.
Here’s what you need to know about the amended S.62:
● ESA scholarship values will be $7,500, with annual adjustments for inflation.
● The program will be income-limited in 2025-26 to 300% of the federal poverty line (FPL) which is currently $96,450 for a family of 4. In 2026-27 and all years after, eligibility will go to 500% of the federal poverty line ($160,750 for a family of 4)—this provides educational options for 85% of K-12 students in South Carolina.
● 10,000 scholarships are available for 2025-26, and then every year after that, there must be at least 15,000 scholarships. The General Assembly may adjust the number of scholarships above 15,000 based on demand.
● There is no prior public school attendance requirement.
● Several groups will have priority for scholarships. They are: renewing those currently in the program; siblings of current ESTF students; children of active duty military; and households at or below 300% FPL, and students who attended public school during the previous school year.
● The scholarship funding source can be determined annually in the budget by the General Assembly, so the legislature has discretion on whether funding comes from the general fund or lottery revenue. This gives the legislature flexibility to respond to any potential court challenges.
● This will be a true trust fund, managed by a superintendent-appointed trustee. Funds clearly cease to be public funds upon transmission to the trustee. This setup follows the model provided in Justice John Kittredge’s dissent in the Eidson case.
● There is language included to provide for interdistrict transfer (aka “open enrollment”) for ESTF students in every school district, fees for which can be covered with ESTF.
● The rights of independent schools are clearly protected in the law.
By setting income limits at 500% FPL, the legislation makes roughly 85% of school aged South Carolinians eligible, putting this as a near-universal program. By giving the General Assembly the flexibility to increase the number of scholarships beyond 15,000, this will create near total universal school choice in South Carolina. We, along with many other organizations in South Carolina, are confident in the legal standing of this program with the trustee component and with the legislature’s ability to shift the funding source should the need arise.
“After decades of debate on the issue of school choice, I’m pleased to see the Senate advance S. 62 to the House for consideration,” Palmetto Family Council President Steve Pettit noted. “This bill would provide broad educational options for children throughout South Carolina. I look forward to the House passing the amended S. 62 and sending it to Governor McMaster for his signature.”
*Information regarding this bill was sourced from Palmetto Promise Institute, the Charleston Post and Courier, SC Daily Gazette and the bill itself.*