Cruz Introduces Legislative Package to Combat Covid-19 Learning Loss

Press Release

U.S. Sen. Ted Cruz (R-Texas) today introduced the Catch Up Our Kids Act of 2022, legislation that would combat K-12 learning loss that American children incurred due to school closures during the COVID-19 pandemic. Nearly every K-12 school switched to remote learning in the Spring of 2020, not returning to in-person learning until Fall 2020 at the earliest, and for many it was longer. Because of this, students fell behind in math and reading, and low-income students were the hardest hit.

The Catch Up Our Kids Act would allow parents to take back control of their child's education so children can recover from any learning loss resulting from misguided and politically driven pandemic school closures.This proposal includes a mix of tax incentives and re-allocation of some Elementary and Secondary School Emergency Relief Fund (ESSER) funding. As of June 2022, states have not spent the majority of their ESSER allotment.

About the bills Senator Cruz said:

"At the start of the COVID-19 pandemic, schools across the country began to close and "go virtual' in order to protect the health and well-being of our kids. But while the science quickly showed that COVID-19's impact on schoolchildren was minimal, teachers unions, and liberal bureaucrats across the country were slow to return to normal. Because of this, millions of children across the country fell behind educationally -- an outcome far more harmful than the pandemic. This is unacceptable, but the Biden administration has done little if anything to help these kids catch up. As a father, I am personally concerned about educating the next generation. This issue is foundationally important, and the Catch Up Our Kids Act will begin to address the learning loss we've seen because of the pandemic, and get our kids back on track."

The Catch Up Our Kids Act includes the following:

· Learning Loss Tax Credit: Creates a temporary 3-year Learning Loss Tax Credit of $1,200 per-child to allow the parent or legal guardian of a K-12 student to recoup actual expenses incurred for education-related activities.

· Employer Reimbursement: Temporarily extends the tax provision that allows employers to reimburse an employee for certain tuition and education-related expenses on a tax-free basis to include educational expenses for employee's children.

· Expand 529 ESAs: Expands Education Savings Accounts (ESAs) to include homeschool expenses for a period of 3 years.

· Double Coverdell Contribution Limit: Doubles the annual contribution limit for Coverdell ESAs from $2,000 to $4,000 per year for a period of 3 years.

· Favorable ESA Gift Exclusion Tax Treatment: Exempts contributions to a 529 ESA and Coverdell ESA from the annual exclusion, ensuring these gifts do not trigger gift tax consequences.

· Reprogram ESSER Money: Allows states to use unspent Elementary and Secondary School Emergency Relief (ESSER) funds to fund Scholarship Granting Organizations (SGOs), using ESSER money as seed money. SGOs would then be able to award parents/legal guardians scholarships.

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