Nearly 24,000 students in Alabama now have access to state-funded Educational Savings Accounts (ESAs) thanks to the Choice Act.
This initiative, which began in 2024 and officially started this year, enables eligible families to utilize public funds for covering private school tuition, homeschool expenses, or fees for out-of-district public schools. For the 2025-26 academic year, families can obtain up to $7,000 per child for private school and $2,000 per child (with a max of $4,000 per family) for homeschooling.
According to a report by Alabama Daily News, around 14,284 private school students have received funding, amounting to about $100 million. Additionally, approximately 6,913 homeschool students are expected to get around $13.8 million, while 1,438 students in other educational programs are projected to receive about $10.1 million. Together, these groups represent over 80% of the approved funds, with those attending private schools getting the largest portions.
The Department of Revenue reported receiving 36,873 applications for the program. As of mid-June, 23,576 awards had been granted. Families need to submit their registration verification with the designated educational providers before June 30th to start receiving funds from July 1st.
Currently, eligibility for the program is restricted to households earning less than 300% of federal poverty levels, which includes about 75% of families in Alabama. Priority for awards is given to students with disabilities, followed by children from active military families attending designated schools.
Data shows that many of the approved students were already outside the public school system before applying. Approximately 45% were in private schools, while 29% were homeschooled. Around 22% came from public schools, with some planning to continue their education through eligible out-of-district options. A few recipients are still finalizing their plans on how to use the funds.
Any portion of the $180 million budget for the Choice Act that isn’t allocated to families will be returned to the state Education Opportunity Reserve Fund.