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Policy & Legislation

ESA News & Updates

The latest on Education Savings Account legislation, new state programs, funding changes, and policy developments affecting families nationwide.

21
States with active ESA programs
13
States with pending legislation
2026
Record year for ESA expansion
Featured

Texas ESA Enrollment Portal Expected to Launch in 2026

Texas, one of the most anticipated ESA programs in the country, is finalizing its enrollment infrastructure. Signed into law by Governor Abbott in October 2024, the Texas Education Savings Account will provide $10,500 annually per student — and up to $30,000 for students with special needs. With 75,000+ families projected to enroll in year one, Texas is set to become one of the largest ESA programs in the nation.

The Texas Education Agency is partnering with Odyssey for fund management. Families can monitor updates at educationfreedom.texas.gov. For a full walkthrough of the application process, see our Texas ESA Application Guide.

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Recent Updates

Alabama CHOOSE Act Launches for 2025-26 School Year

Alabama's Creating Hope and Opportunity for Our Students' Education (CHOOSE) Act became active in 2025, offering up to $7,000 for private school tuition and $2,000 for homeschool expenses. The universal program is open to all students ages 5-19 (up to 21 for students with disabilities) and is administered by the Alabama State Department of Education.

Tennessee Education Freedom Scholarship Opens Enrollment

Tennessee launched its Education Freedom Scholarship program in early 2025, providing $7,500 per student with a phased rollout. The program reserves 50% of initial slots for low-income families and students with special needs, and uses ClassWallet for fund management. The state expects 25,000+ initial enrollees.

Arizona ESA Enrollment Surpasses 92,000 Students

Arizona's Empowerment Scholarship Account, the nation's first universal ESA program (expanded in 2022), continues to see strong enrollment growth. With over 92,000 students now participating and 2,100+ approved providers, Arizona remains the model for other states designing their own ESA programs. Annual funding stands at $9,572 per student.

Kentucky Education Opportunity Accounts Face Legal Challenge

Kentucky's H.B. 1 established a tax-credit Education Opportunity Account program, but the law faces ongoing litigation. Courts are reviewing whether the program meets Kentucky's constitutional requirements for public education funding. The outcome will be closely watched by other states considering similar structures.

West Virginia Hope Scholarship Expanding to Universal in 2026-27

West Virginia's Hope Scholarship program is on track to become fully universal by the 2026-27 school year, removing remaining enrollment restrictions. Currently serving 9,500+ students at $5,267 per year, the program is managed by the Hope Scholarship Board and covers tuition, tutoring, curriculum, therapies, and online courses.

Pending State Legislation

These 13 states are actively considering ESA-related legislation. Some bills have advanced through committee, while others are in early introduction stages. Track their progress below.

CO

Colorado

In Committee

HB 26-1292 relates to private school participation in a federal tax credit program. The state is actively debating school choice legislation.

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ID

Idaho

Enacted (Tax Credit)

Idaho enacted H.B. 731 in 2025 related to a federal tax credit program for education, with universal private school choice legislation advancing.

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IL

Illinois

Introduced

HB 2822 would establish an ESA for families earning up to 2.5x the free-and-reduced lunch threshold, with awards up to 100% of per-pupil state aid.

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KS

Kansas

Multiple Bills

Kansas enacted S.B. 361 (tax credit). SB 75 proposes a universal refundable tax credit of up to $8,000 per child for accredited private school tuition.

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KY

Kentucky

Legal Challenge

H.B. 1 established a tax-credit Education Opportunity Account program. Earlier legislation faces ongoing litigation.

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MD

Maryland

Introduced

H.B. 1204 would create an income-based ESA at 75% funding for families at or below 500% of the federal poverty level.

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MN

Minnesota

Dual Bills

H.F. 19 and S.F. 244 would let families direct state education dollars toward tutoring, therapy, private school tuition, and more.

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NE

Nebraska

In Debate

Proposals to expand education savings flexibility. As a state with a Republican trifecta, ESA legislation continues to be debated.

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NJ

New Jersey

Pilot Program

S. 1027/A. 1578 proposes a low-income pilot tax credit scholarship targeting 8 chronically failing school districts.

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RI

Rhode Island

Introduced

S.B. 2540 would create an ESA with an income cap at 250% of the federal poverty level.

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SD

South Dakota

Enacted (Expansion)

S.B. 84 expanded the existing tax credit scholarship by raising the income cap from 150% to 200% of the free-and-reduced lunch threshold.

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VA

Virginia

Oversight Framework

H.B. 359 would create a comprehensive oversight framework for all private schools receiving public tuition assistance.

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WA

Washington

Foster Care Only

H.B. 2719 would create an ESA program specifically for foster care students.

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Current State Funding Amounts

Annual ESA funding varies significantly by state. Here are all 21 active programs ranked by funding amount.

State Program Name Annual Amount Eligibility
Texas Texas Education Savings Account $10,500 Universal (up to $30K special needs)
Arizona Empowerment Scholarship Account $9,572 Universal (all K-12)
Florida Family Empowerment Scholarship (FES) $8,000 Universal / Income-based
Oklahoma Parental Choice Tax Credit $7,500 Universal (income tiers)
Tennessee Education Freedom Scholarship $7,500 Universal (phased)
South Carolina Education Scholarship Trust Fund $7,200 Income-based + special needs
Ohio EdChoice Expansion Scholarship $6,165 Universal + income-prioritized
Utah Utah Fits All Scholarship $6,823 Universal (income-prioritized)
Indiana INESA $6,735 Special needs & income-based
Arkansas Children's Educational Freedom Account $6,694 Universal (phased)
Montana Special Needs Equal Opportunity ESA $6,602 Special needs only
Georgia Georgia Promise Scholarship $6,500 Income-based
Iowa Students First ESA $7,598 Universal (phased in)
Louisiana LA-GATOR $6,800 Universal (all students)
New Hampshire Education Freedom Accounts $5,655 Income-based (350% FPL)
North Carolina NC ESA for Children with Disabilities $9,000 Special needs only
Mississippi ESA for Students with Special Needs $6,637 Special needs only
Missouri Missouri Empowerment Scholarship $6,375 Income & district-based
Alabama CHOOSE Act $5,400 Universal (ages 5-19)
West Virginia Hope Scholarship $5,267 Universal (expanding 2026-27)
Wyoming Wyoming Education Savings Account $5,800 Special needs + income-based

Check your state's ESA program

See detailed guides for all 21 ESA states — funding amounts, eligibility, approved expenses, and application details.

View State Guides Getting Started Guide