RELA Act of 2026
- Sponsor
- Rep. Crank, Jeff [R-CO-5]
- Committees
- Ways and Means Committee (primary)
- Last action
- Oct 9, 2026
Bottom line
The bill aims to safeguard the autonomy of private and religious schools and scholarship organizations from government control or discrimination when participating in federal tax code provisions related to education expenses.
What it actually does
This bill amends Section 25F of the Internal Revenue Code of 1986 to explicitly prohibit federal, state, or local government entities from controlling scholarship granting organizations or private and religious elementary and secondary education institutions that participate in programs under that section. It also prevents governments from excluding or disadvantaging these institutions or their qualified expenses based on religious character, affiliation, or mission-based policies.
Proponents argue
Supporters argue this bill protects religious freedom and parental choice in education by ensuring that private and religious schools can participate in scholarship programs without fear of government overreach or forced secularization. They contend it prevents governments from imposing conditions that would undermine the mission or character of faith-based educational institutions.
Opponents contend
Critics might argue that by explicitly limiting government oversight, the bill could reduce accountability for organizations receiving public benefits (even indirectly through tax code provisions) and potentially allow for discrimination under the guise of religious freedom, particularly if public funds are involved. They may also raise concerns about the separation of church and state if tax benefits are extended without sufficient non-discrimination clauses.
The bill is very short and can be read quickly, allowing ample time for stakeholders to understand its provisions.
Section 2, amending Section 25F(h)(1)
Autonomy for Scholarship Granting Organizations
This provision clarifies that scholarship granting organizations, by participating in programs under Section 25F of the Internal Revenue Code, are not considered government agents. It explicitly states that no government entity can mandate, direct, or control any aspect of these organizations, aiming to grant them maximum freedom in their operations.
Supporters argue
Supporters argue this ensures that private scholarship organizations can operate according to their missions without government interference, preserving their independence and ability to serve specific communities or values.
Critics contend
Critics might express concern that without some level of governmental oversight, scholarship organizations receiving indirect public benefits (via tax code provisions) could operate without sufficient accountability or transparency, potentially leading to misuse of funds or discriminatory practices.
Tradeoffs
Balances organizational autonomy with potential public interest in accountability for entities interacting with tax-advantaged programs.
Section 2, amending Section 25F(h)(2)(A)
Autonomy for Private and Religious Schools
This part prohibits federal, state, or local government entities from mandating, directing, or controlling any aspect of private or religious elementary or secondary education institutions that are involved with Section 25F. It aims to protect the independence of these schools from governmental influence.
Section 2, amending Section 25F(h)(2)(B) and (C)
Non-Exclusion and Non-Discrimination for Religious Schools
This provision prevents government entities from imposing conditions that would exclude private or religious elementary and secondary education institutions from being considered for qualified education expenses under Section 25F. It specifically prohibits discrimination against these institutions based on their religious character, affiliation, or religiously/mission-based policies or practices.
Section 2, amending Section 25F(h)(3)
Protecting Parental Choice in Scholarship Use
This section explicitly prohibits any federal, state, or local government entity from disfavoring or discouraging the use of scholarships from participating organizations for qualified education expenses at private or nonprofit elementary and secondary education institutions, including faith-based schools. It reinforces parental choice in selecting educational institutions.