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HB 2632

An Act amending the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, in educational tax credits, further providing for limitations and providing for termination of authority; providing for education options tax credits; establishing the Accountability for Diverted Tax Dollars Restricted Account; providing for scholarship granting organizations, for application by eligible contributors, for scholarships, for educational improvement programs, for low-achieving schools, for school participation in program and for original jurisdiction; and imposing duties on the Department of Community and Economic Development, the Department of Education, the Department of Revenue, the Auditor General, the Independent Fiscal Office and the State Treasurer.

2025-2026 Regular Session Introduced by Matt Bradford and 17 co-sponsors

The bill creates new education-focused tax credits, scholarship programs, and an accountability framework intended to direct funds to underperforming schools while preventing diver

Referred to Education
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WeVote Research Nonpartisan
Bill Summary · HB 2632

Overview

  • Bill: HB 2632
  • Session: 2025-2026 (Pennsylvania)
  • Committee: Education (initially Labor and Industry, per introduced text; action history shows Education referral)
  • Purpose: Broad package modifying multiple tax credit programs, adding education options credits, creating a new accountability account, and establishing rules related to scholarship programs, educational improvement, and school participation. It also imposes duties on several state agencies and includes employment verification provisions linked to state grants.

Note: The provided text appears to combine two distinct policy tracks: (1) an education-focused tax credit and program framework, and (2) a separate "Grant Recipient Employee Verification Act" related to unauthorized employment verification for grant-received employers. The summary below emphasizes substantive provisions relevant to the Public School Code and education-focused reforms, while noting the employment-verification components as described in the bill text.

Main purpose and intent

  • Reforms related to educational tax credits and funding mechanisms.
  • Establishes new accountability and program structures to oversee education-focused expenditures and scholarship programs.
  • Introduces targeted supports for low-achieving schools and eligible educational improvement initiatives.
  • Creates a framework for scholarship granting organizations and for eligible contributors to participate in education-related programs.
  • Imposes duties on multiple state agencies to implement and oversee these reforms, with defined timelines and reporting requirements.

Key provisions and changes

  • Education tax credits and programs

    • Amends the Public School Code of 1949 to address educational tax credits.
    • Creates or revises limitations and provides for termination of authority related to these credits.
    • Establishes an “Accountability for Diverted Tax Dollars Restricted Account” (name suggests a mechanism to restrict funds diverted from intended educational purposes).
    • Provides for “education options tax credits” and related eligibility, application, and administration aspects.
    • Establishes scholarship granting organizations and outlines process for application by contributors, for scholarships, and for educational improvement programs.
    • Targets supports for low-achieving schools and requires school participation in the program.
    • Addresses original jurisdiction and related procedural aspects for administration and oversight.

  • Scholarship and program administration

    • Provides a framework for scholarships and educational improvement programs tied to eligible contributors and participating schools.
    • Sets criteria for how funds can be used to support students, schools, and educational improvements.
    • Establishes conditions under which schools may participate and the responsibilities of participating entities.

  • Accountability and governance

    • Creates an accountability mechanism for the diverted tax dollars restricted account.
    • Specifies duties for the Department of Community and Economic Development, the Department of Education, the Department of Revenue, the Auditor General, the Independent Fiscal Office, and the State Treasurer.
    • Likely requires reporting, audits, and oversight to ensure funds and credits are used as intended.

  • Effective date and implementation

    • Act is set to take effect one year after enactment.
    • Includes provisions for implementation by the relevant agencies, with timelines and required actions to operationalize credits, accounts, and scholarships.

  • Administrative and programmatic details (as available)

    • Specifies definitions and scope for entities, programs, and compliance mechanisms.
    • Addresses possible eligibility of contributors, distribution of scholarships, and eligibility criteria for schools and improvement programs.
    • Establishes duties for compliance monitoring, reporting, and enforcement.

Who would be affected

  • Eligible students and families seeking educational tax credits, scholarships, and participation in educational improvement programs.
  • Educational providers, including low-achieving schools, that participate in the scholarship program or improvement initiatives.
  • Scholarship-granting organizations and eligible contributors who participate in funding education-focused programs.
  • State agencies (Department of Education, Department of Community and Economic Development, Department of Revenue, Auditor General, Independent Fiscal Office, State Treasurer) responsible for implementing, administering, auditing, and reporting on the programs.
  • Local school districts and charter schools that participate in the program and report on outcomes.

Procedural and timeline aspects

  • Effective date: One year after enactment.
  • Administration and reporting: Requires agency duties, oversight, and likely annual reporting to ensure compliance and transparency.
  • Enforcement: Establishes penalties and enforcement mechanisms for noncompliance with the tax-credit and scholarship provisions, including potential suspension or termination of authority for involved programs.

Potential impact and considerations

  • Aims to direct more funds into education-related tax credits and to provide targeted support for underperforming schools.
  • Introduces an accountability framework intended to prevent diversion of tax dollars and to ensure program integrity.
  • Increases the role of multiple state agencies in governance and oversight of education credits and scholarships.
  • Could affect family choices by expanding scholarship and improvement program options, depending on eligibility and funding levels.
  • The dual focus on employment verification for grant-receiving employers (if interpreted as part of the same bill) introduces labor compliance requirements tied to state grants, with enforcement and remedies outlined.

If you’d like, I can provide a side-by-side comparison with current law (Public School Code provisions) and draft a plain-language one-page summary for public audiences.

Compiled from official sources — confirm details with the bill’s official record.

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