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House passes Rivera bill to increase transparency and accountability in EITC program

Pennsylvania House Democratic Caucus    June 22, 2026 | 4:11 PM

HARRISBURG, June 22 – The Pennsylvania House today passed legislation (H.B. 2632) introduced by state Rep. Nikki Rivera that would increase accountability and transparency in the state’s Educational Improvement Tax Credit programs.

The bill would close reporting gaps and help ensure that program funds are reaching their intended recipients.

Rivera noted that EITC programs have grown to a $680 million public investment in nonpublic education for fiscal year 2025-26 -- more than four times the $150 million cap that existed a decade ago. Despite that growth, the Independent Fiscal Office has reported that significant data gaps make it difficult to fully evaluate the programs’ effectiveness.

“A $680 million annual scholarship tax program should be transparent and include detailed reporting,” Rivera said. “This bill would ensure that everyone can see how well EITC programs are working, whom they are helping, and whether students in private and parochial schools are receiving tuition relief.”

Rivera emphasized that the legislation would not reduce funding for the program.

“This bill would not cut one penny from the $680 million EITC program,” she said.

House Bill 2632 would require participating schools to provide basic information to the Department of Education, businesses redirecting tax dollars through the program to submit basic information to the Department of Revenue, and participating entities to undergo audits by the state Auditor General.

“By closing these reporting gaps, H.B. 2632 would provide the information needed to assess the effectiveness of EITC scholarships and evaluate their impact on students, schools, and taxpayers,” Rivera said.

The Educational Improvement Tax Credit program, established by Act 4 of 2001, allows businesses to reduce their state tax liability -- including the Corporate Net Income Tax and other taxes -- by contributing to approved scholarship and educational organizations.

“Our taxpayers deserve to know if their tax dollars are reaching the students they are intended to help and students deserve to receive the scholarships for which they qualify,” Rivera said. “H.B. 2632 provides the transparency needed to make that a reality.”

The legislation is now on its way to the Senate for consideration.