Alabama families can apply to get up to $7,000 toward private school tuition from the state starting Jan. 2.
In May, the legislature passed a law, known as the CHOOSE Act, to create a new school choice program, which will eventually allow all K-12 students in the state to apply for support if they want to go to a private school.
Families can apply for state-funded education savings accounts, which are available for certain families to spend toward tuition and other education expenses starting in the 2025-26 school year.
The first ESAs will be limited to specific groups of students. All students in the state will be eligible for ESAs at the start of the 2027-28 school year.
How do I apply for an education savings account?
ESAs will be administered through the Alabama Department of Revenue, which is using a service called ClassWallet to distribute funds. Recipients will be able to use a digital wallet account to pay for services once they are approved.
To apply for an ESA, visit chooseact.alabama.gov.
Applications open Jan. 2, 2025.
When do I get money in the education savings account?
According to the state, students enrolled in a participating school will get up to $7,000 beginning July 1, 2025. Students participating in a homeschool program will get $2,000 beginning July 1, with a cap of $4,000 per family.
What are the income requirements for ESAs?
To be eligible for the 2025-26 school year, applicants must meet the following household income guidelines:
Which students are eligible?
The program is only open to Alabama residents. Students must be between the ages of 5 and 19 and have not graduated high school to participate. Students with disabilities between the ages of 5 and 21 are also eligible.
Priority will be given in this order:
- Students with special needs receive the first 500 ESAs
- Siblings of eligible students
- Students in military families zoned to priority schools (The state’s most recent list of priority schools can be downloaded here)
- Students in families whose income does not exceed 300% of the federal poverty level, which currently would be $93,600 for a family of four
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Eligible families must provide a birth certificate for each eligible child, proof of Alabama residency, and proof of income to apply.
What can ESA funds be used for?
ESAs can be used for tuition and certain fees at participating schools, as well as the following expenses:
- Textbooks in approved subjects
- Fees for after-school or summer education programs provided by a participating school
- Curriculum and supplemental reading materials
- Instructional materials (i.e. school supplies)
- Private tutoring in approved subjects
- Computers and technological aids
- Tuition and fees for approved nonpublic K-12 online learning programs
- Educational software and applications
- Educational therapies for students with disabilities
- Fees for standardized and nationally recognized assessments
- Contracted services provided by a public school district including specific classroom instruction
The parent of a student receiving an ESA must agree to pay the remaining amount of tuition or expenses beyond the $7,000 cap.
A guide explaining how to use the funds, eligible services and more is available here. Prospective families can also sign up for a Dec. 27 informational webinar here.
What are options for homeschool families?
Families who homeschool their children could receive $2,000 per child, up to $4,000 each year, for eligible expenses.
Which private schools are participating?
Schools and providers must choose to participate to receive money from a child’s ESA. Applications for providers are currently open.
What about other school choice, tax credit programs?
Families eligible for tax credit scholarships through the Alabama Accountability Act can’t apply to both programs – they must choose one or the other.
The AAA, which is targeted toward low-income students in priority schools, allows up to a $10,000 maximum award per school year. Students can transfer to another public or private school.
Eligible families can expect to be notified by their school by Jan. 10, 2025. Students have until March 1, 2025 to return a transfer form to their school district.
I provide an education service. How can I get involved?
Schools must meet the following requirements:
- Be accredited by or in the process of being accredited by an approved accrediting agency named in the bill,
- Agree to comply with the Alabama Child Protection Act, meaning adults must go through background checks,
- Provide financial statements to the Alabama Department of Revenue that show their ability to provide educational services to the student, or provide a surety bond,
- Require students to take a standardized test that meets the requirements, unless the student has a disability that exempts them from being tested,
- Provide school-level test scores to the Department of Revenue,
- Tell the Department of Revenue if the student withdraws or misuses the ESA,
Consideration also will be given to individuals, organizations and vendors who provide educational services or therapies, or who sell certain educational items. More eligibility information can be found in this guide.
Applicants will receive a decision within 14 days of their submission.
Participating schools and education service providers cannot discriminate against a student based on race, color or national origin.
They are not required to accept any student, however, or provide services for children with disabilities. They also are not prohibited from discriminating against a student with a disability.
