10/07/2026
In a letter to Secretary of the Treasury Scott Bessent, Ranking Members Neal and Wyden called out the Administration’s actions as a blatant attempt to circumvent the clear rules established by Congress to funnel even more taxpayer funds away from public education and use it to subsidize the private school education.
Section 25F(b)(1) states, as plainly as can be, “[t]he credit allowed under subsection (a) to any taxpayer for any taxable year shall not exceed $1,700.”1 The Treasury Department interpreted that clear statutory rule thusly: The Treasury Department and the IRS interpret section 25F to limit the credit amount that may be claimed to $1,700 per individual taxpayer, allowing married couples filing jointly to potentially claim up to $3,400 on their joint tax return provided that each spouse has made qualified contributions of up to $1,700. The justification for this violation of Federal law was simply that “[t]his interpretation is consistent with other instances in which a joint return is treated as consisting of two individual taxpayers.”
WASHINGTON, DC— House Ways and Means Committee Ranking Member Richard E. Neal (D-MA) and Senate Finance Committee Ranking Member Ron Wyden (D-OR) today objected to the Treasury Department’s recently issued proposed regulations on new Internal Revenue Code section 25F that further Republican atte...
