Pennsylvania 2025-2026 Regular Session

Pennsylvania House Bill HB1489

Introduced
5/21/25  

Caption

Establishing the Lifeline Scholarship Program and the Lifeline Scholarship Fund; and conferring powers and imposing duties on the State Treasury and Auditor General.

Summary

HB1489 would amend Pennsylvania’s Public School Code to create the Lifeline Scholarship Program, beginning with the 2026-2027 school year. The program would provide state-funded scholarships through accounts administered by the State Treasury for eligible school-age children to attend participating nonpublic schools. Eligible students are generally Pennsylvania residents who have not graduated from high school and either live in the attendance boundary of a low-achieving school or in households below 350% of the federal poverty guidelines, and who also meet one of several schooling-history requirements, including prior public-school attendance, prior scholarship participation, or entering kindergarten. The scholarships could be used only for tuition, school-related fees, and special education services fees at participating nonpublic schools. Award amounts would be set at $2,500 for half-day kindergarten, $5,000 for full-day kindergarten through grade 8, $10,000 for grades 9 through 12, and $15,000 for students with special needs, with annual increases tied to inflation and basic education funding growth. The bill also creates a Lifeline Scholarship Fund in the State Treasury, funded initially by a $350 million transfer from the General Fund and continuing annual transfers of the same amount, with money appropriated on a continuing basis for scholarships. The bill would significantly affect state education and fiscal policy by redirecting substantial public funds into a new school-choice program and by imposing new administrative duties on the State Treasury, the Department of Education, school districts, participating nonpublic schools, and the Auditor General. It also sets up reporting, auditing, fraud investigation, procurement, and temporary rulemaking authority to implement the program, while limiting how participating schools may charge scholarship recipients and requiring them to report enrollment, attendance, and academic progress data. General sentiment in the available record appears supportive in sponsorship but otherwise not documented through committee debate or recorded votes. The bill was introduced with a large bipartisan-looking sponsor list, but there are no committee transcripts or vote tallies provided, so no formal floor or committee sentiment can be inferred beyond the bill’s policy design. The structure of the bill suggests strong support from school-choice advocates and likely concern from opponents of voucher-style programs, particularly because of the large recurring General Fund transfer and the use of public money for private-school tuition. Notable points of contention likely include whether the program diverts resources from public schools, the size and ongoing nature of the funding commitment, and the eligibility rules that combine low-achieving-school residency with income-based access. Additional issues include oversight of participating nonpublic schools, the extent of state regulation over private schools, and whether the program’s scholarship accounts and school reporting requirements are sufficient to prevent fraud and ensure accountability.

Impact

HB1489 would amend the Public School Code by adding a new Article XVII-E that establishes a state-run scholarship program and fund, creates eligibility and application rules, and assigns implementation and oversight responsibilities to the State Treasury and Auditor General. It would also require school districts to notify families of low-achieving school designations, require participating nonpublic schools to certify compliance and report student data, and require resident school districts to provide student records to participating schools. The bill would create a new continuing appropriation from the Lifeline Scholarship Fund and require a recurring $350 million transfer from the General Fund, making it a major fiscal and policy change affecting public education funding, private-school participation, and state administrative operations.

Sentiment

The available materials show no recorded committee discussion or vote history, so there is no direct evidence of opposition or support beyond the bill’s introduction and broad list of sponsors. The bill’s design indicates a pro-school-choice, pro-scholarship policy approach, and its immediate effective date and implementation deadlines suggest sponsors intended rapid rollout. In the absence of transcripts or votes, the overall sentiment can only be characterized as sponsor-driven and likely polarized along public-school-versus-school-choice lines.

Contention

The main likely points of contention are the use of a large, recurring General Fund transfer to finance private-school scholarships, the effect on public school resources, and whether the program should be limited to students in low-achieving schools or expanded through the income-based eligibility pathway. Critics are also likely to focus on accountability and oversight of participating nonpublic schools, the autonomy language limiting state regulation, and whether the program adequately protects against fraud and misuse. Supporters would likely emphasize expanded educational options for low-income families and students in underperforming schools, as well as the special-needs scholarship amount and the ability to renew awards year to year.

Companion Bills

No companion bills found.

Previously Filed As

PA SB969

Establishing the Educational Freedom for Families Program and the Teacher Excellence Incentive Fund; and imposing duties on the Department of Education and the State Treasurer.

PA SB10

Establishing the Pennsylvania Award for Student Success Scholarship Program and the Pennsylvania Award for Student Success Scholarship Fund.

PA HB2052

Providing for internal auditing; and imposing duties on the Auditor General.

PA LB624

Appropriate funds to the State Treasurer for education scholarships

PA HB1283

Establishing the Integrated Student Supports Program and the Integrated Student Supports Fund; and conferring powers and imposing duties on the Department of Education.

PA HB1362

Establishing the Taxpayer Dividend Program; imposing powers and duties on the State Treasurer and Department of Revenue; and providing for payment of certain taxpayer dividends.

PA HB1092

Establishing the Taxpayer Dividend Program; imposing powers and duties on the State Treasurer and Department of Revenue; and providing for payment of certain taxpayer dividends.

PA SB304

Providing for military education scholarship account; and imposing penalties.

PA HB2308

In institutions of higher education, establishing the PA WORKS Scholarship Grant Program and the trade career-incentive tax credit.

PA H3203

State-funded scholarships extend to accelerated programs

Similar Bills

UT HB0109

Utah Fits All Scholarship Program Alterations

UT SB0107

Education Scholarship Amendments

UT HB0467

Utah Fits All Scholarship Program Modifications

NJ S1027

"Opportunity Scholarship Act"; establishes pilot program in Department of Treasury providing tax credits to taxpayers contributing to scholarships for low-income children.

NJ A1578

"Opportunity Scholarship Act"; establishes pilot program in Department of Treasury providing tax credits to taxpayers contributing to scholarships for low-income children.

SC H4741

Tuition Gap Scholarship Program

SC S0959

Tuition Gap Scholarship Program

OR SB630

Relating to scholarships for use at participating nonpublic schools.