Education Scholarship Accounts: Empowering Families Through Educational Choice

Education scholarship accounts (ESAs) are transforming the landscape of primary and secondary education by providing families with greater control over their children's learning paths. These accounts, funded by state governments, offer a flexible way to pay for a variety of educational services and resources, allowing parents to customize their child's education to meet their unique needs and interests.

Understanding Education Savings Accounts (ESAs)

An ESA is essentially a state-supervised savings account containing a child’s education funds, which can be used to pay for a variety of approved educational expenses. Instead of being limited to traditional public schools, families can use these funds to choose schools, courses, services, and providers that they believe will best support their children's learning.

How ESAs Work

Once a family is approved for an ESA, the state deposits funds into a dedicated account. The exact amount varies depending on the state and the child's eligibility, often reaching several thousand dollars per year. Parents can typically use these funds in one of three ways:

Purchasing through an approved online marketplace.
Authorizing direct payments to pre-approved education providers.
Paying out of pocket and requesting reimbursement.

It’s important to check your state’s ESA program for specific rules and approved vendors, as the exact process varies by state.

Allowable Expenses

ESA funds can be used for a wide range of educational expenses, including:

Private or micro-school tuition
Personalized tutoring
Online classes
Educational tools, supplies, and curriculum
Enrichment experiences

Some families use ESA funds to combine interest-led subjects like astronomy or creative writing with focused academic support such as math tutoring. This blended approach can boost confidence and help learners stay engaged and motivated. ESAs also make it easier for families exploring non-traditional educational methods like unschooling, deschooling, or hybrid homeschooling to craft learning experiences that reflect their values and their child’s natural curiosity.

The Rise of Universal Choice

Universal eligibility is the defining trend in recent private school choice reforms. For decades, private-school choice programs (like vouchers) provided funds only to certain families-e.g., families with low household income or a child with a disability. Many of today’s programs take the form of education savings accounts (ESAs).

ESA Availability Across the United States

As of 2025, ESA programs are active in 18 states, with more considering similar legislation each year. These states include:

Alabama
Arizona
Arkansas
Florida
Georgia
Indiana
Iowa
Louisiana
Mississippi
Montana
New Hampshire
North Carolina
South Carolina
Tennessee
Texas (to launch in the 2026-2027 school year)
Utah
West Virginia
Wyoming

Programs like Arizona’s Empowerment Scholarship Account (open to nearly all K-12 students) and North Carolina’s ESA+ (which offers up to $17,000 annually for learners with disabilities) show the range and potential of these initiatives.

Eligibility and Application Process

Eligibility for ESAs varies by state, with each program having its own requirements. Some states offer universal access to all K-12 students, while others limit eligibility to specific groups, such as:

Students with special needs
Families below a certain income threshold
Children attending public schools rated as underperforming
Students previously enrolled in public school for a minimum period
Military or foster care families (in some states)

The age range and qualifying criteria may differ depending on your state’s legislation. As you explore ESA options for your family, let's break down the key areas to help you make this important choice.

Steps to Apply

Learning Style & Goals: Think about how your child learns best. Do they thrive in hands-on environments, independent study, or interactive group settings? This can help you choose learning experiences that not only support their growth but also qualify under ESA guidelines-for example, small-group classes, tutoring, or curriculum resources. Outline specific learning goals. Are you looking to reinforce foundational skills, explore new subjects, or follow a learner-led path based on curiosity? Defining your goals makes it easier to identify which programs or tools to spend your ESA funds on and ensures your choices stay aligned with your child's needs.
Financial Planning: Look into how much ESA funding is available in your state and how it fits into your broader education budget. List the types of educational expenses you'd like to cover-such as tutoring, curriculum materials, online courses, or extracurricular programs-and confirm what’s eligible through your state’s ESA guidelines.
Practical Considerations: Think about how hands-on you want to be in your child’s day-to-day learning. If you’re looking for a structured routine with regular check-ins, you might gravitate toward scheduled classes or tutoring. If you need more flexibility or want your child to lead the way, you might prioritize self-paced programs, interest-led projects, or tools that support independent learning.
Community Engagement: Join a local or online ESA community to exchange tips with other families, ask questions, and stay current on your state’s program updates. These spaces can be great for learning what’s worked well for others and discovering resources you might not have come across yet.
Review Eligibility and Deadlines: Visit your state’s ESA program page to review eligibility, deadlines, and approved expenses. Make a shortlist of learning resources or providers that align with your goals. Try a few resources or programs to see what fits-then adapt as needed. Starting small can help you build confidence as you create a plan that works for your family.
Gather Necessary Documents: Before starting the application process, it’s important to gather the necessary documents and materials. These documents typically include proof of residency, proof of income, and proof of identity.
Complete the Application Form: This form will typically require personal information about the parent or guardian and the student. For example, you may be asked to provide proof of exams, proof of enrollment in a failing school, and other necessary details.

Iowa's Students First ESA Program

In Iowa, the Students First Act makes state funding available to support the success of every K-12 student. Parents who choose to enroll their eligible children in one of Iowa’s accredited nonpublic schools will receive an amount equal to the per pupil funding allocated to public school districts for the same budget school year. For the 2025-26 school year, the amount will be $7,988. Funds are held in an education savings account (ESA) to be used for tuition, fees, and other eligible qualified education expenses.

Key Aspects of Iowa's ESA Program:

Eligibility: Eligible students are those who have an approved application, attend an Iowa accredited nonpublic school, and pay fall tuition and fees by September 30 deadline.
Funding Amount: The ESA amount for the 2025-26 school year will be $7,988.
ESA Balance: Funds remaining in an ESA from a prior year are eligible to be used in another year the student is an ESA participant.
School of Choice: The ability to select the school the ESA participant plans to attend in the 2025-26 school year will be available in the ESA portal immediately after an application is approved.
Using ESA Funds: Funds are made available through the ESA portal. Nonpublic schools charge tuition and fee amounts through the ESA portal. Half of the ESA funds are made available beginning July 15 to use for fall tuition and fees.

Iowa ESA Application Process

The Students First ESA Application will be available in English and Spanish. on June 30, 2025. Only one application per family is needed. Parents/guardians can add multiple students from their household onto their application.

Application information will only be viewed by parties necessary to complete the application verification and approval process, which includes the Iowa Department of Education, the Iowa Department of Revenue, and Odyssey.

Applications that are able to be verified through the automatic review processes (i.e., verify through information available in a 2024 Iowa State Tax Return) should receive a response within 30 minutes of completion. Applications that require additional documentation to verify through a manual review will take additional processing time.

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If the parent/guardian did not complete a 2024 Iowa State Tax Return, additional documentation will be required.

Iowa Residency Verification Documents:

Option 1: Current Iowa Driver's License
Option 2: Proof of Residence (current mortgage, lease, utility bill) and one of the following:
- Iowa Voter Registration Card
- Claim of Homestead Credit or Military Tax Exemption on a home in Iowa
- Active checking or savings account with an Iowa address
- Other documents and correspondence initiated during tax periods with an Iowa address
Option 3: Other written and signed narrative from parent/guardian explaining the situation including a stated claim of Iowa residency, and other related documentation reflecting residency.

ESAs and Homeschooling

For students homeschooling nationwide, ESAs have emerged as game changers for homeschooling families, offering flexibility and resources. One significant way ESAs impact homeschooling is by providing financial support. Homeschooling often requires investment in many resources, such as curriculum materials, educational tools, and extracurricular activities. Parents can also use ESA funds to access specialized courses, online learning platforms, tutoring services, and even educational experiences outside the home.

States Allowing Homeschoolers to Participate in ESA Programs:

Arizona, Arkansas, Utah, Wyoming, Missouri, New Hampshire, West Virginia, and Florida allow families to participate in ESAs while continuing homeschooling.

Potential Drawbacks and Considerations

Critics contend that ESA programs lack protections for students and taxpayers. They also contend that ESAs have little track record of success and siphon off funds that would be better spent on public schools. Researchers, state officials, and advocacy groups have raised concerns about the program’s expansion. Some have pointed to wasteful spending from the lightly regulated program, while others have emphasized exploding costs and their potential impacts on public schools.

The Future of ESAs

In the future, ESAs are likely to become increasingly popular as more parents seek greater control over their children’s education and look for more options. Together, ESAs and microschooling represent a shift toward a personalized approach to education.

State-Specific ESA Programs

Alabama: Starting in the 2025-2026 school year, the CHOOSE (Creating Hope & Opportunity for Our Students’ Education) Act will provide eligible families (students from families with incomes up to 300% of the federal poverty level) with a tax-credit ESA worth $7,000 per student.
Arizona: Arizona’s Empowerment Scholarship Accounts program has been expanded to include all students in the state. The program provides scholarships averaging around $7,000 to families enrolled in the program.
Arkansas: The Arkansas Children’s Educational Freedom Accounts program has been launched to help families afford nonpublic learning options. Participants can receive 90% of their children’s state education funding deposited into an online account for approved expenses, such as private school tuition.
Florida: In 2023, Florida expanded its state-run programs to support families opting for private education. The existing Family Empowerment Scholarship Educational Opportunity Voucher program and Florida Tax Credit program have transitioned into ESA programs. These programs are available to all children in the state seeking nonpublic school options. Students with IEPs, struggling readers, and victims of bullying can also apply for Florida’s Family Empowerment Scholarship for Unique Abilities.
Indiana: Indiana’s Education Scholarship Account program provides ESAs to eligible families to cover the cost of private school tuition for their children. The program permits parents to use state funds to pay tuition at participating private schools.
Iowa: Iowa has an ESA program that provides funds to families for tuition and other expenses at accredited private schools. In the 2023-2024 school year, more than 18,000 students participated in the program.
Louisiana: Starting in 2025, the Louisiana Giving All True Opportunity to Rise Scholarship (LA GATOR) Program will provide eligible families (students from families with incomes up to 250% of the federal poverty level) with an ESA to be used for eligible educational expenses.
Mississippi: The Mississippi ESA program, also known as the Equal Opportunity for Students with Special Needs program, offers students with IEPs a chance to obtain a portion of their public education funding in a savings account.
Missouri: In 2024, the MOScholars ESA program in Missouri expanded statewide. This program offers flexible scholarship funds that families can use to attend eligible public, charter, virtual, private, or homeschooling. Additionally, families can use the funds for educational therapy or school transportation.
Montana: Montana’s Students with Special Needs Opportunity Act allows families of children with disabilities to apply for education savings accounts. Participating families will receive about $6,800 in an online account for their child.
New Hampshire: New Hampshire has implemented the Education Freedom Account (EFA) in New Hampshire-their common purpose remains unchanged.

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