THE STAKES ARE HIGH FOR MICHIGAN
The OBBBA makes harmful changes related to education, some of which are tax-related and others that deal with student loans.
Tax Impact
National School Voucher Program: Educational Choice for Children Act (ECCA)
- For the first time, taxpayers can donate to Scholarship Granting Organizations (SGOs) and fully deduct the donations as a dollar for dollar credit up to $1,700 per tax payer per year. The SGOs then distribute the scholarships (or vouchers) for students to use on private or religious school tuition, homeschooling costs, or other related education expenses. The scholarship funds would be available to families whose household incomes do not exceed 300 percent of their area’s median gross income.
- States have to opt into the program.
- Families can begin receiving the scholarships (vouchers) January 1, 2027.
- It is difficult to predict the cost of the program because we do not yet know which states will opt in, but the non-partisan Joint Committee on Taxation estimates that this voucher program could cost the federal government almost $26 billion in lost tax revenue over the next decade.
- School vouchers are historically unpopular with voters because they drain resources from local public schools and primarily benefit wealthy families who already have access to high quality public schools or the ability to pay for a private education.
Repercussions for Student Loan Programs
Placing limits on federal student loans will force students, particularly those seeking graduate degrees, to take out loans on the private loan market. Students who cannot take on the burden of higher interest rates may no longer have access to a graduate-level education.
- Limits on loan access:
- Eliminates the Graduate PLUS loan program.
- Caps graduate student loan borrowing at $20,500/year and $100,000 lifetime.
- Professional student loan borrowing capped at $50,000/year and $200,000 lifetime.
- It’s not yet clear yet what programs are considered graduate and what are considered professional.
- Reduces the amount parents can borrow under the Parent PLUS program.
- Places a cap on lifetime borrowing of $275,500.
- Changes to the repayment plans for new federal loan borrowers:
- Terminates all repayment plans authorized under the income contingent repayment statute including the Income Contingent Repayment, Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Saving on a Valuable Education (SAVE) plans.
- Replaces these plans with a new standard plan and a new income-based plan, the Repayment Assistance Plan.
- Terminates all repayment plans authorized under the income contingent repayment statute including the Income Contingent Repayment, Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Saving on a Valuable Education (SAVE) plans.
- Changes to the repayment plans for current federal loan borrowers:
- Requires borrowers enrolled in current income contingent repayment plans to move to new plans.
- Changes to the Pell Grant program:
- Makes a student ineligible for a Pell Grant if their Student Aid Index equals or exceeds the amount of the maximum Pell award.
- Includes foreign income in the calculation of a student’s Pell eligibility.
- Makes students ineligible for Pell if they are receiving other non-Title IV grants that taken together equal or exceed the student’s full cost of attendance. This is most likely to affect student athletes.
- Expansion of eligibility for very short-term job training programs.
Analysis provided by
Alexandra Stamm, Education Policy Analyst
Jay Cutler joined the League in March 2026 as the Kids Count Senior Data Analyst, where he collects, analyzes, and prepares data for Kids Count in Michigan.
Danielle Taylor-Basemore joined the League as the Development Data and Stewardship Coordinator in June 2025. She brings with her five years of nonprofit experience with a special focus on community engagement, data visualization and strategic programming. Prior to joining the League, Danielle served as the Business District, Safety, and Digital Manager at Jefferson East, Inc.
Scott Preston is a Senior Policy Analyst with the Michigan League for Public Policy, where he leads the organization’s immigration and criminal justice reform portfolios. In the three years prior to joining the League, Scott facilitated the Southeast Michigan Refugee Collaborative and managed a small business economic development program at Global Detroit. His work included launching Michigan’s first Refugee Film Festival and building on a trusted connector model that linked marginalized communities with crucial resources. Scott’s work at the League is informed by his background in journalism and research. He spent four years covering the Syrian refugee crisis in the Middle East for publications such as The Economist, and later worked with unaccompanied refugee minors through Samaritas. Scott holds a master’s degree in international migration and public policy from the London School of Economics and Political Science.
Kate Powers joined the League as the Chief Development Officer in February 2025. Prior to joining the League, Kate held leadership positions at many Michigan nonprofit organizations, most recently serving as the COO and Chief Development Officer of Ele’s Place. Kate has spent the bulk of her career in fundraising, with a short stint in the state Legislature as a legislative aide to members in both chambers. Kate is a graduate of Michigan State University’s James Madison College with a Bachelor of Arts in Social Relations and has a certificate in fundraising management from the Lilly Family School of Philanthropy at Indiana University. Additionally, Kate served on the East Lansing Public Schools Board of Education and is a past President of the Junior League of Lansing. In her free time, she enjoys traveling with her husband and her son and saving outfit of the day and home decor ideas on Pinterest. 
Nicholas Hess joined the League as the Fiscal Policy Analyst in September of 2024. In this role, Nicholas focuses on tax policy, government revenue, and their impact on working families and racial equity, including the effects of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). Nicholas values the role that judicious fiscal policy can play in the improvement of people’s lives and the economy, alleviating inequities along the way.
Audrey Matusz joined the League as the Visual Communications Specialist in September 2024. She supports the team with implementing social media strategies and brainstorming creative ways to talk about public policy. She brings with her nearly a decade of experience in producing digital products for evidence-based social justice initiatives. 
Jacob Kaplan 
Donald Stuckey 
Alexandra Stamm 
Amari Fuller
Mikell Frey is a communications professional with a passion for using the art of storytelling to positively impact lives. She strongly believes that positive social change can be inspired by the sharing of data-driven information coupled with the unique perspectives of people from all walks of life across Michigan, especially those who have faced extraordinary barriers. 
Yona Isaacs (she/hers) is an Early Childhood Data Analyst for the Kids Count project. After earning her Bachelor of Science in Biopsychology, Cognition, and Neuroscience at the University of Michigan, she began her career as a research coordinator in pediatric psychiatry using data to understand the impacts of brain activity and genetics on children’s behavior and mental health symptoms. This work prompted an interest in exploring social determinants of health and the role of policy in promoting equitable opportunities for all children, families, and communities. She returned to the University of Michigan to complete her Masters in Social Work focused on Social Policy and Evaluation, during which she interned with the ACLU of Michigan’s policy and legislative team and assisted local nonprofit organizations in creating data and evaluation metrics. She currently serves as a coordinator for the Michigan Center for Youth Justice on a project aiming to increase placement options and enhance cultural competency within the juvenile justice system for LGBTQIA+ youth. Yona is eager to put her data skills to work at the League in support of data-driven policies that advocate for equitable access to healthcare, education, economic security, and opportunity for 0-5 year old children. In her free time, she enjoys tackling DIY house projects and trying new outdoor activities with her dog.
Rachel Richards rejoined the League in December 2020 as the Fiscal Policy Director working on state budget and tax policies. Prior to returning to the League, she served as the Director of Legislative Affairs for the Michigan Department of Treasury, the tax policy analyst and Legislative Director for the Michigan League for Public Policy, and a policy analyst and the Appropriations Coordinator for the Democratic Caucus of the Michigan House of Representatives. She brings with her over a decade of experience in policies focused on economic opportunity, including workforce issues, tax, and state budget.
Simon Marshall-Shah joined the Michigan League for Public Policy as a State Policy Fellow in August 2019. His work focuses on state policy as it relates to the budget, immigration, health care and other League policy priorities. Before joining the League, he worked in Washington, D.C. at the Association for Community Affiliated Plans (ACAP), providing federal policy and advocacy support to nonprofit, Medicaid health plans (Safety Net Health Plans) related to the ACA Marketplaces as well as Quality & Operations.
Renell Weathers, Michigan League for Public Policy (MLPP) Community Engagement Consultant. As community engagement consultant, Renell works with organizations throughout the state in connecting the impact of budget and tax policies to their communities. She is motivated by the belief that all children and adults deserve the opportunity to achieve their dreams regardless of race, ethnicity, religion or economic class.
Emily Jorgensen joined the Michigan League for Public Policy in July 2019. She deeply cares about the well-being of individuals and families and has a great love for Michigan. She is grateful that her position at the League enables her to combine these passions and work to help promote policies that will lead to better opportunities and security for all Michiganders.
Megan Farnsworth joined the League’s staff in December 2022 as Executive Assistant. Megan is driven by work that is personally fulfilling, and feels honored to help support the work of an organization that pushes for more robust programming and opportunities for the residents of our state. She’s excited and motivated to gain overarching knowledge of the policies and agendas that the League supports.
