KY GOP bill for scholarship tax credits advances despite concern over moving too fast

A Kentucky House Republican priority bill that would incentivize donations to school scholarship programs in exchange for tax credits has quickly found itself advancing to the full state Senate.

The Senate Education Committee approved House Bill 1 on Thursday, which would allow the state to enroll in the federal Education Freedom Tax Credit Scholarship program, with an 11-2 vote.

HB 1 was filed Feb. 19 — the same day the Kentucky Supreme Court ruled that 2022’s House Bill 9 was unconstitutional. HB 9 had created a funding mechanism for charter schools.

Critics of HB 1 say the bill is an attack on public schools, and provides opportunities to send money to private schools instead. Gov. Andy Beshear has been among the most vocal detractors.

“In 2024, Kentuckians overwhelmingly voted that public dollars should only go to public schools,” Scottie Ellis, spokesperson for Beshear, told the Herald-Leader. “Last week, the Kentucky Supreme Court agreed in a landmark ruling. Filing House Bill 1 hours after the ruling shows that Republican legislators refuse to listen to Kentuckians as they try to find a workaround to push their own agenda.”

Beshear echoed that message while speaking to reporters Thursday.

“I’ve been really clear that public dollars should only go to public schools and I don’t comment on whether I’m going to veto or not veto bills until they get to my desk, but I’m a 100% pro public education governor that believes that public dollars should only go to public schools,” Beshear said.

The federal program allows up to a $1,700 deduction for people who make contributions to scholarship-granting organizations. The federal measure was part of school choice expansion included in President Donald Trump’s One, Big, Beautiful Bill Act.

SGOs are nonprofits that accept contributions and use that money to provide scholarships for education-related services at private or public schools. That can include tuition, fees, tutoring and classroom supplies.

Rep. Kim Moser, R-Taylor Mill, the bill’s primary sponsor, told lawmakers Thursday that HB 1 will help improve student outcomes. Moser and others have remarked repeatedly on the possible benefit for public schools.

“This measure would provide a significant tool for public schools to harness a federal tax credit to assist families and children’s access school resources,” Moser said previously. “It affirms our commitment to expanding educational opportunities and improving student outcomes.”

Sen. Reggie Thomas, D-Lexington, who voted no, said scholarship tax programs in Kentucky have not been accepted by the courts or voters because they harm public schools.

Thomas said he feared the bill set up a system of “have and have nots.”

But Moser and co-sponsor TJ Roberts, R-Burlington, pushed back on that assessment. Roberts said the bill would help families who are living paycheck to paycheck .

They also said the scholarships can pay for technology, transportation and other needs for students in small districts that don’t have private schools.

Moser and Roberts said HB 1 won’t cost people in Kentucky any money.

Sen. Gerald Neal, D-Louisville, was the other no vote. Neal said he needed more information about the bill. He didn’t want to do anything to undermine public education, but said if he got more information that showed it would be beneficial, “no” might not be his final vote.

Sen. Max Wise, R-Campbellsville, said the bill was “for kids“ and would benefit public school districts. Senate Education Committee Chair Steve West, R-Paris, also said it was a way to get more money into public schools.

States must opt in to the tax credit program, but this bill shifts that power from Beshear to Republican Secretary of State Michael Adams.

Beshear previously spoke against a similar bill filed by Roberts in this same session. House Bill 88 also would allow Kentucky to enroll into the same federal tax scholarship program.

Beshear said in a statement provided to the Herald-Leader that HB 88 “is unconstitutional in both where education funds can go in Kentucky and in what powers the state auditor can exert.”

Roberts said this proposed shift in power was because he didn’t believe Beshear would enroll Kentucky in the program.

‘The public never got to see the final version before the vote’

Supporters see the legislation as expanding educational opportunities in Kentucky. Critics said with a committee hearing and floor passage in the House on the same day, the public didn’t have a chance to weigh in.

The Kentucky Democratic Party sent out an alert about the bill Wednesday.

“Yesterday, House Republicans passed HB 1 and sent it to the Senate. They fast-tracked it so quickly that the public never got to see the final version before the vote. This fight is not over,” the organization said in an email.

Neighboring Indiana is one of 27 states to have opted into the program, which begins in January 2027.

Already through the House and a Senate committee, HB 1 will now go before the full Senate.

Reporter Hannah Pinski contributed to this story.

This story was originally published February 26, 2026 at 12:34 PM.