House Republicans are aiming to allocate up to $5 billion annually in scholarships for families to send their children to private and religious schools, an unprecedented move that would channel public funds towards private education.

This proposal, part of a spending bill unveiled on Monday, aims to advance President Donald Trump's championed "universal school choice" by providing families nationwide with alternatives to the education offered in local public schools, and would apply to nearly all households, excluding those earning more than three times the local median income.

Proponents of private school vouchers contend that these provide families assigned to underperforming schools with a wider array of choices.

Republican Senator Bill Cassidy of Louisiana, who supported a similar idea in the Senate, said that giving parents the power to choose the best education for their children helps make the American Dream possible.

The program is funded by contributors who donate cash or stocks, receiving a tax credit equal to their donation and allowing stock holders to avoid taxes typically imposed on donations or transfers of shares.

Critics argued that the proposal would help rich people instead of the public school system, which serves most students. They also said it would create a way for smart investors to make money without paying taxes by calling it a donation.

These developments are unfolding as the Trump administration continues its efforts to downsize the Department of Education and diminish federal support for public schools, including significant reductions in mental health grants and teacher training funds.

Sasha Pudelski from the American Association of School Administrators (AASA) said this is a big threat. She added that in states with voucher programs, the money often helps families who could already pay for private school. She also said this makes the problems of waste, fraud, and abuse in voucher programs across the country even worse.

Tax credit scholarships and private school voucher programs, which are similar in nature, are proliferating in conservative states, such as Texas, which recently enacted a $1 billion program. Advocates of public education are concerned that these programs will strain enrollment and per-student funding, ultimately reducing resources for families who opt for public schools.