Supporting Students and Families Act
- Sponsor
- Rep. Lawler, Michael [R-NY-17]
- Committees
- Ways and Means Committee (primary)
- Last action
- Aug 3, 2026
Bottom line
The bill creates a new federal tax credit of up to $200 to help families offset the cost of school supplies for their children.
What it actually does
This bill amends the Internal Revenue Code of 1986 to establish a new, non-refundable tax credit for eligible elementary and secondary school supply expenses. Taxpayers can claim up to $200 for expenses related to books, supplies, and other equipment for their dependents attending public, private, or religious schools. The credit is subject to an income limitation, phasing out for taxpayers with modified adjusted gross income exceeding $150,000.
Proponents argue
Supporters argue that this bill provides much-needed financial relief to families facing rising costs for essential school supplies, making education more accessible and reducing the burden on household budgets. They contend that a tax credit directly benefits parents by allowing them to reclaim a portion of these unavoidable expenses, supporting both public and private school students.
Opponents contend
Opponents might argue that while well-intentioned, a $200 tax credit is a relatively small amount that may not significantly impact families struggling with broader educational costs. Critics could also point to the administrative burden for taxpayers to track and claim these expenses, and question whether a tax credit is the most efficient or equitable way to support school supply purchases, especially given the income phase-out which limits benefits for some middle-income families.
The bill is very short and easy to read, making it highly accessible for anyone wishing to understand its provisions quickly.
Section 2(a), new Section 25G of the Internal Revenue Code of 1986
Elementary and Secondary School Supply Expenses Credit
This provision establishes a new tax credit for individuals who pay or incur expenses for elementary and secondary school supplies for their dependents. The credit is equal to the amount of eligible expenses, up to a maximum of $200 per taxable year. It aims to help families offset the costs associated with equipping their children for school.
Supporters argue
Proponents assert that this credit directly addresses a common financial strain for families, providing tangible relief that can be used for essential educational materials. They argue it supports parental choice by applying to public, private, and religious schools.
Critics contend
Opponents may contend that the $200 cap is too low to provide meaningful relief for many families, especially those with multiple children or higher-cost educational needs. They might also argue that a tax credit disproportionately benefits higher-income earners who can fully utilize the credit, even with the phase-out.
Tradeoffs
The provision balances the desire to provide financial relief to families against the fiscal impact of creating a new tax expenditure. It also navigates the tension between broad applicability (all school types) and targeting specific income levels through its phase-out mechanism.
Section 2(a), new Section 25G(b)(2) of the Internal Revenue Code of 1986
Income Limitation for the School Supply Credit
This section introduces an income-based phase-out for the school supply tax credit. The credit amount is reduced for taxpayers whose modified adjusted gross income (MAGI) exceeds $150,000. The reduction is proportional to how much the taxpayer's MAGI exceeds this threshold, with the credit fully phased out for MAGI $65,000 above the threshold.