Governor Ivey announces applications open for Alabama’s education savings account program created by CHOOSE Act

Alabama parents can now apply to have their child or children entered into the state’s first-ever education savings account program. The goal of the ESA, established by the CHOOSE Act, is to provide parents with increased options for how and where their children are taught.

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If found eligible to be admitted into the program, families can receive a $7,000 ESA to enter their student into a private or public school at the beginning of the next academic year. Those homeschooled will be up for a $2,000 ESA with a limit of $4,000 for each family. An ESA can be used to pay for school tuition, tutoring, educational therapies, and other qualified education expenses at approved education service providers across the state.

“Alabama families can start the new year with a great opportunity for school choice in their communities,” said Governor Kay Ivey, who championed and signed into law the Creating Hope and Opportunity for Our Students’ Education (CHOOSE) Act in March 2024. “The CHOOSE Act will help our Alabama students receive the highest-quality education possible by giving greater flexibility to families to pursue educational options that meet their individual needs. It is a wonderful opportunity to make the future of Alabama stronger than ever.”

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Educators expect the program to boost student numbers in private academic institutions.

“I believe the CHOOSE Act has tremendous potential to serve many families across Alabama by providing them with options that may not have been accessible to them before,” Alabama Independent School Association Executive Director Michael McLendon told Alabama Daily News. “I think we’ll see enrollment in non-public schools grow across the state, and I expect the development of more innovative programs (micro-schools, special services programs, etc.) as a result.”

“However, I don’t anticipate drastic enrollment surges in non-public schools during the first year or two of the program.”

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In this first year of the program, the first 500 ESAs will be awarded to participating students with special needs, with a second priority awarded to participating students who are dependents of active-duty service members enrolled in or assigned to a priority school. Remaining ESAs will be awarded for participating students based on each family’s adjusted gross income, not exceeding 300% of the federal poverty level for the preceding tax year (e.g., a family of four making less than $93,600).

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Once approved, students can begin using their ESA funds for approved expenses in July 2025.

Alabama families can apply today for an ESA on the program’s website, which also has information and resources about the initiative, including eligibility information, FAQs, and detailed guides for parents and ESPs.

For the 2025-2026 school year, the program is open to families with an adjusted gross income (AGI) not exceeding 300 percent of the federal poverty level for the preceding tax year. The program will prioritize students with special needs, with a secondary focus on students who are dependents of active-duty service members enrolled in or assigned to a priority school.

The remaining ESAs will be available to students based on the family’s AGI as a percentage of the federal poverty level.

Austen Shipley is a staff writer for Yellowhammer News. You can follow him on X @ShipleyAusten