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Governor Kay Ivey announced Thursday that applications for Alabama’s new Education Savings Account (ESA) program, created under the CHOOSE Act, are officially open for the 2025-26 school year. Families can now apply online through the program’s website, with the application window open until April 7, 2025. Award notifications are expected to be sent to families in May 2025.
The Creating Hope and Opportunity for Our Students’ Education (CHOOSE) Act, signed into law by Ivey in March 2024, aims to expand school choice options for Alabama families by offering ESAs to K-12 students. The program, managed by the Alabama Department of Revenue (ADOR), provides funding for eligible families to pay for private school tuition, homeschooling expenses, tutoring, and educational therapies at approved education providers across the state.
“Alabama families can start the new year with a great opportunity for school choice in their communities,” Ivey said in a statement. “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.”
Under the CHOOSE Act, families can receive $7,000 per eligible student attending a participating private school, while those enrolled in home education programs are eligible for $2,000 per student, with a cap of $4,000 per family. In its first year, the program will prioritize the first 500 ESAs for students with special needs, followed by children of active-duty service members attending priority schools. Any remaining ESAs will be awarded based on family income, with eligibility capped at 300% of the federal poverty level — approximately $93,600 annually for a family of four.
Students approved for ESAs will be able to use the funds starting in July 2025. The CHOOSE Act website provides detailed guides for parents and education service providers, as well as eligibility requirements and FAQs to help families navigate the process.
Interest in the program was immediate. ADOR reported that nearly 3,000 families submitted applications on Thursday, the first day the ESA application portal opened.
The law, which takes effect with the 2025-26 academic year, was a top priority for Ivey and passed through the Republican-controlled Legislature with strong support. While eligibility will initially be limited to certain groups of students, all K-12 students in Alabama will be eligible for ESAs starting with the 2027-28 school year.
Also on Thursday, the Alabama Department of Revenue appeared before the Legislature’s contract review committee to request an additional $385,000 for its contract with ClassWallet, a Florida-based company managing the ESA platform. The contract, which runs through September 2025, now totals $1.7 million. The additional funding will be used to implement and promote the program.
As the state moves forward with its largest school choice initiative to date, supporters say the CHOOSE Act will open new opportunities for families, while critics argue that the program diverts public funds to private education and could widen educational disparities. For now, the rollout has generated significant interest, and officials are preparing for thousands more applications before the April deadline.
For more information, visit chooseact.alabama.gov.
