Senate raises parental choice tax‑credit cap to $275 million after tense floor debate

The Oklahoma Senate approved House Bill 3705 on third reading, increasing the cap on the parental choice (school choice) tax credit from $250 million to $275 million by a 39–9 vote. Sponsors said the modest increase preserves access for eligible families during growing demand; critics called for more oversight and data proving the program meets state education goals.

Leader Daniels, speaking for the measure, said the program now serves tens of thousands of students and that past increases were made because the cap was being approached: “On behalf of the 39,500 children who were able to benefit from this program in the last school year... I would appreciate a yes vote.” He noted 56% of recipients last year were households earning under $150,000.

Opponents disputed whether the recent growth justifies expanding the cap, arguing the Legislature has limited evidence that the program improves statewide literacy or graduation rates, and noting that last year a substantial share of credits went to higher‑income families. Senator Bourne urged greater accountability, saying the program had grown rapidly without accompanying performance audits.

The sponsor responded that separately funded, targeted supports exist for the neediest students and that the program has been increased gradually in past years to keep pace with demand; the floor record shows the sponsor referencing Oklahoma Tax Commission data that the program was close to the prior cap.

The Senate recorded 39 ayes and 9 nays on the measure. Under the bill, the new cap will be available for the upcoming school year if the bill is enacted.

Next steps: The bill will proceed under the normal enactment process; if signed, the new cap will apply to the program for the next disbursement cycle.