Nearly 24,000 Alabama students have been approved to receive state-funded education savings accounts (ESAs) through the CHOOSE Act, according to data from the Alabama Department of Revenue.
The program, enacted in 2024 and launched this year, enables eligible families to utilize public funds to cover private school tuition, homeschool expenses, or out-of-district public school fees. For the 2025–26 school year, families can receive up to $7,000 per child for private school enrollment or $2,000 per child (up to $4,000 per family) for homeschooling.
According to a May report by Alabama Daily News, approximately 14,284 private school students have been awarded funds, totaling an estimated $100 million. An additional 6,913 homeschool students are expected to receive approximately $13.8 million, and 1,438 students enrolled in public school out-of-district programs will receive roughly $10.1 million. Combined, these groups account for over 80% of the total approved funding, with private school students receiving the largest share.
The Department of Revenue reported receiving 36,873 student applications. As of mid-June, 23,576 awards had been issued. Families have until June 30 to submit enrollment verification with an approved education provider to begin receiving funds starting July 1.
Eligibility for the CHOOSE Act is currently limited to households earning less than 300% of the federal poverty level, which includes about 75% of Alabama families. The law prioritizes awards first to students with disabilities, followed by children of active-duty military families attending priority schools, then by income level.
Enrollment data reveals that the majority of students approved for the program were already outside the public school system prior to applying. About 45% were enrolled in private schools, and 29% were homeschooled. Roughly 22% came from public schools, and some of those students plan to continue in public education through eligible out-of-district options. A small number of approved recipients have not yet finalized their plans for using the funds.
Any portion of the CHOOSE Act’s $180 million annual appropriation not distributed to families will be returned to the state’s Educational Opportunities Reserve Fund.
Sherri Blevins is a staff writer for Yellowhammer News. You may contact her at [email protected].
