House Republicans are proposing to allocate a maximum of $5 billion annually for scholarships enabling families to send their children to private and faith-based schools, representing a groundbreaking initiative to deploy public funds for private schooling.

The plan, which was released on Monday as part of a budget bill, would help President Donald Trump achieve his goal of 'universal school choice'. It would allow families across the country to choose a different school for their children instead of the local public school. Almost all families would be eligible, except for those who earn more than three times the average income in their area.

Advocates for private school vouchers claim their aim is to provide families allocated to underperforming schools with an expanded range of options.

Republican Louisiana Senator Bill Cassidy, who also supported a similar plan in the Senate, said that letting parents choose the best education for their child helps make the American Dream possible.

The program would get money from donors who could give cash or shares. In return, they would get all of their contribution back as a lower tax bill. This would let shareholders avoid paying taxes they would normally have to pay if they gave away or transferred their shares.

Critics strongly criticized the proposal, saying it would help rich people and hurt the public schools that most students go to. They said it would create a tax rule that lets smart investors make money by pretending it's a donation.

This situation unfolds as the Trump administration scales back the Education Department and reduces resources for public schools, notably eliminating $1 billion allocated for mental health grants and teacher training.

“This presents a substantial risk,” stated Sasha Pudelski of AASA, the School Superintendents Association. She further noted that states with voucher programs frequently find themselves supporting families already enrolled in private education. “It’s exacerbating an issue that has already compromised voucher initiatives nationwide, specifically widespread waste, fraud, and misuse of funds.”

Comparable tax-credit scholarship and private school voucher schemes have become widespread in states with a conservative political inclination, such as Texas, which recently enacted a program valued at $1 billion. Those who champion public education are concerned that these initiatives negatively affect student enrollment and the financial provision per student, thereby diminishing the resources available to families who opt for public schooling.