Keep Public Funds in Public Schools Act of 2026

This legislation, titled the "Keep Public Funds in Public Schools Act of 2026," aims to eliminate certain federal tax benefits associated with contributions to private scholarship granting organizations. Its primary objective is to repeal specific provisions within the Internal Revenue Code that currently provide incentives for such contributions. This action is intended to redirect financial support towards public education by removing these tax advantages.

The bill specifically amends the Internal Revenue Code of 1986 by striking section 25F, which provides a tax credit for individual contributions to scholarship granting organizations. It also repeals section 139K, which offers an exclusion from gross income for certain related amounts. These changes are designed to ensure that federal tax policy no longer subsidizes private scholarship programs through these mechanisms, with the amendments generally applying to taxable years ending after December 31, 2026, and to amounts received after that date for the gross income exclusion.