Keep Public Funds in Public Schools Act

This bill proposes significant changes to the Internal Revenue Code by targeting tax benefits associated with scholarship granting organizations. Its primary provision repeals Section 25F, which currently allows individuals to claim a tax credit for contributions made to these organizations. This move aims to discontinue federal tax incentives for such private scholarship programs.

Additionally, the legislation strikes Section 139K, thereby eliminating the exclusion from gross income for specific amounts received from scholarship granting organizations. The bill includes necessary conforming amendments to other parts of the tax code to align with these repeals. These comprehensive changes are slated to take effect for taxable years ending after December 31, 2026, with the gross income exclusion repeal specifically applying to amounts received after that date.