The Economics of Bulls & Books

EO-14191: Expanding Educational Freedom and Opportunity for Families

Few policies have signaled as profound a reform as Executive Order (EO-14191), Expanding Educational Freedom and Opportunity for Families (EEF). Signed on January 29, 2025 under the Trump administration, EEF aims to infuse US education with, perceived, market-driven efficiency. By reallocating federal funding toward school choice initiatives—including vouchers, charter schools, and private faith-based institutions—EEF seeks to invigorate the education sector with market fundamentals.

At its core, EEF is both an ideological statement and an economic disruption. Advocates hail it as a necessary correction to a stagnant public education monopoly, while detractors warn of financial instability. The economic implications for investors, entrepreneurs, and policymakers are vast, creating opportunities in education-adjacent markets from EdTech to real estate.

“An investment in knowledge pays the best interest.” — Benjamin Franklin

EEF isn’t just about school choice—it represents a significant restructuring in the distribution of federal education funds. While the goal is to expand options for families, the real impact lies in the numbers: $10–20 billion is being redirected from long-standing programs like Title I, IDEA, and the Child Care Development Block Grant into a new funding model. Its provisions reflect policy proposals which envision a decentralized, market-oriented education model.

The Heritage Foundation, a prominent conservative think tank, has been instrumental in shaping the policy framework through its "Project 2025" blueprint. Faith-Based groups, parental rights organizations, The 1776 Commission, charter school advocacy networks, veteran associations, and Republican legislators support the initiative to redirect federal education funds toward school choice programs. Lawmakers and allied federal policy makers seek to codify many of its provisions into law.

  • Senators Tim Scott (R-SC) and Bill Cassidy (R-LA) — co-sponsors of the Education Freedom Scholarships and Opportunity Act, a bill proposing a $10 billion annual allocation for private school scholarships.

  • Congressional School Choice Caucus — GOP lawmakers who collaborate with advocacy organizations like EdChoice and the American Federation for Children to promote expanded voucher programs and Education Savings Account (ESA) initiatives.

  • Legislative Endorsements — Republican legislators and their co-sponsored bills further corroborates the influence of these groups.

A coalition of twelve states, including Arizona, Florida, and Ohio, have implemented universal or near-universal school choice programs. Meaning, EEF shouldn’t be seen as a momentary policy turn but as part of a broader historical continuum.

  • The GI Bill (1944) — redefined the trajectory of millions, opening doors to higher learning that had once been bolted shut. In its wake, a new middle class emerged.

  • Charter School Expansion (1990s–2000s)in 1991, Minnesota etched its name into history, pioneering the first charter school law and setting the stage for an educational model driven by choice and competition.

  • Federal Measures (2017–2020) — President Trump’s first term saw more than $1.5 billion channelled into charter school expansion. Simultaneously, 529 plans—once exclusive to college tuition—were broadened to cover K-12 education.

Criticisms & Risks

The Education Trust (EdTrust) has raised concerns that voucher programs may contribute to worsened academic outcomes for low-income students, exacerbating existing disparities. In states where vouchers have been expanded to all families—regardless of income or demonstrated need—the primary beneficiaries tend to be those who were never enrolled in public schools.

  • In Arkansas, 95% of students using vouchers in recent years did not transfer from public schools.

  • In Arizona, 71% of students using Education Savings Accounts (ESAs) in 2023 were already enrolled in private or homeschool settings before receiving public funds.

These figures prompt a crucial question: Are voucher programs genuinely expanding access for underserved students, or are they merely subsidizing choices already made by wealthier families? Moreover, fiscal instability and inevitable legal challenges present significant factors that cannot be overlooked.

  • Public School Funding Risks – Redirecting over $10 billion in federal grants toward private education could exacerbate financial shortfalls in already struggling public school districts, particularly those serving lower-income populations.

  • Accountability Gaps – Arizona’s voucher program came under scrutiny when funds were misused for non-educational purchases, highlighting the need for stricter oversight and transparency in spending.

  • Market Competition – As more companies and schools enter the private education sector, increased competition could lead to compressed profit margins and inconsistencies in quality.

  • Scalability Challenges – Not all private schools and EdTech companies are prepared to absorb the surge in demand, raising concerns about capacity, staffing, and infrastructure.

  • Blaine Amendments – Several state constitutions, including Florida’s, prohibit public funds from supporting religious education. Legal battles over these provisions could complicate the expansion of school choice initiatives.

  • Federal Overreach – Some conservative lawmakers argue that directing federal funds toward private education could undermine state autonomy, leading to resistance from those who view education policy as a state-level responsibility.

  • Regulatory Uncertainty – Future administrations or court rulings could alter, restrict, or even reverse current funding allocations.

Public scrutiny is inherent with an executive order as controversial and widely debated. Thriving in this environment requires a strong understanding of the education system, the politics, and public sentiment.

  • Partner with private school chains and ESA management firms in states with established voucher programs.

  • Monitor discretionary grant allocations, particularly those aimed at military and low-income family education subsidies.

  • Develop niche services in emerging markets like DEI compliance audits, patriotic curriculum design, and voucher management software.

We’ll soon see whether education flourishes through competition or falters beneath its burden. Whether public or private, choice alone does not ensure success—effective execution does. Those who act with purpose, remaining informed and engaged, will shape what lies ahead.

“Education is not the filling of a pail, but the lighting of a fire.” — William Butler

Notes & References

  1. Title I - ESEA supplements State and local funding for low-achieving children, especially in high-poverty schools.

  2. IDEA - The Individuals with Disabilities Education Act (IDEA) is a law that makes available a free appropriate public education to eligible children with disabilities.

  3. Child Care Development Block Grant - The Child Care and Development Block Grant (CCDBG) Implementation Research and Evaluation Grants.

  4. Note: While expert opinions are widely cited in public discussions and policy analyses, specific publication details or URLs were not directly provided in the report.

  5. Note: The precise figure of the $10–20 billion may depend on the final appropriations and specific agency guidance issued following the order.