House approves changes to Utah Fits All scholarship, tightens oversight and spending rules

Representative Perucci opened debate on second-substitute House Bill 4 55, the Utah Fits All Scholarship Program amendments, saying the changes are intended to add guardrails, clarify program management and stabilize the scholarship for future years. “By having robust education options for our children such as homeschool, private school, charter school, micro school, and traditional district schools, we empower parents with tools to tailor their child's education,” Representative Perucci said.

The bill makes several substantive changes to the program that began operations in the 2023-24 academic year. Sponsors and supporters described the amendments as (1) tightening definitions of household income and “primary resident” to confirm Utah residency before awards are made, (2) adjusting scholarship amounts for home-based learners, (3) clarifying allowable and prohibited uses of scholarship funds, (4) creating an orientation and appeals process for providers, (5) requiring prior verification of eligibility before issuing awards, and (6) shifting program oversight from the Utah State Board of Education (USBE) to the Department of Operations.

Supporters said the bill preserves existing scholarship amounts for private school families while setting new per-student allocations for home-based learners: $4,000 for elementary students and $6,000 for middle- and high-school students. Representative Perucci said the first year of the program enrolled about 10,000 students and produced a wait list of roughly 17,000; roughly 80% of recipients in the first year were home-based learners.

The amendments also limit use of scholarship funds for extracurricular and physical education activities, while explicitly classifying arts and music as curricular (eligible) instruction. Sponsors described a set of prohibited expenses intended to focus funds on direct educational services and individualized learning. The bill adds a modest “rollover” incentive for unused funds: for every $2 saved by a family, the state would redirect $1 back into the program (a 2-to-1 incentive) for re‑appropriation to other students.

On finance and administration, sponsors said the bill does not request new general-fund dollars this session but directs that $84 million previously allocated to the program be placed in the Public Treasurer’s Investment Fund (PTIF) to generate earnings while the program matures. The bill also directs a transfer of oversight responsibilities from USBE to the Department of Operations for program administration and data access; sponsors said USBE remains the contract owner for the program’s first year and that verification work was done in coordination with the Utah State Tax Commission.

Representatives from across the chamber praised the sponsor’s work to address early problems. Representative Balbrick said the bill adds accountability to the program and urged no further funding increases this year, citing tight budgets. Representative Lisonbee, who described her own experience homeschooling, said the bill strikes reasonable guardrails while respecting home-based education. Representative Thurston and Representative Trevor Lee also voiced support, calling the reforms necessary to preserve parental choice while improving oversight.

Representative Bollinger called the previous question, ending debate. Representative Perucci noted the program is subject to an annual audit and repeated that scholarship recipients must submit work portfolios and take a state assessment as part of program accountability. “We really have combed through things with a fine tooth,” she said.

The House approved the second substitute of HB 4 55 on a hand vote; the clerk recorded 69 yes and 0 no. The bill will be sent to the Senate for consideration.

The action leaves in place a program experiencing rapid demand: sponsors and supporters said the pilot year’s enrollment and wait list prompted the clarifying rules on eligibility, allowable expenses and oversight.