On January 16, 2025, South Carolina Senate Bill 62 was introduced, aiming to amend existing legislation regarding the Education Scholarship Trust Fund (ESTF) program. The bill seeks to enhance the management and oversight of scholarship accounts for students, while also establishing a structured growth plan for the number of eligible scholarship students over the next two academic years.

The primary purpose of Senate Bill 62 is to streamline the administration of the scholarship program, which provides financial assistance to students attending private educational institutions. Key provisions include the establishment of a cap on administrative costs at two percent, with annual notifications to legislative committee chairmen regarding these costs. The bill also allows the South Carolina Department of Education to contract with qualified vendors for account management and to set reasonable fees based on market rates.

Notably, the bill stipulates that scholarship funds must remain active until certain conditions are met, such as a student returning to public school or graduating. Unused funds can roll over to the next school year for eligible students, while any remaining funds revert to the ESTF if a student leaves the program or is no longer domiciled in the state.

The legislation proposes a phased increase in the number of eligible scholarship students, starting with a limit of 5,000 for the 2024-2025 school year and increasing to 10,000 for the following year. This gradual expansion aims to accommodate growing demand while ensuring the program's sustainability.

Debate surrounding Senate Bill 62 has focused on its implications for public education funding and the potential impact on public school enrollment. Critics argue that expanding the scholarship program could divert essential resources from public schools, while supporters contend that it provides necessary alternatives for families seeking different educational opportunities.

As the bill progresses through the legislative process, its economic and social implications will be closely monitored. Experts suggest that the outcome could significantly influence educational choices in South Carolina, potentially reshaping the landscape of K-12 education in the state. The next steps will involve committee reviews and discussions, where further amendments may be proposed before a final vote is taken.