Section 127 of the Tax Code has enabled an innovative Catholic education model to help thousands of students from low-income families achieve their academic goals and set themselves on a path to success. The Cristo Rey Network students work one day a week at a business, which in turn pays a portion of their tuition as salary. Section 127 incentivizes companies to participate in this life-changing program.
The House tax reform bill would remove this provision; the Senate's bill does not change it.
It is important to recognize with both provisions that the primary use of these two Sections are for college tuition, and that is what Representatives are thinking of when they repeal them. That means our goal is to
educate these Members of Congress about the unintended consequences of their actions. Your assistance in this work is critical, and please know we at the USCCB will keep up the efforts throughout this debate.