News Summary
The Alabama Department of Revenue has announced that nearly 23,000 students will benefit from the new CHOOSE Act, providing $125 million for private school tuition and educational expenses. The initiative aims to improve educational options by providing education savings accounts of up to $7,000 per eligible student and $2,000 for homeschooling families. With over 230 participating schools, the increase in funding prompts both support and criticism regarding its impact on public education funding and resources.
Birmingham, Alabama – The Alabama Department of Revenue has announced that nearly 23,000 students will benefit from the new CHOOSE Act, which allocates nearly $125 million in its first year of operation. This initiative, designed to provide funding for private school tuition and approved educational expenses, aims to facilitate educational options for families across the state.
Under the CHOOSE Act, approximately 80% of the allocated funds will be used specifically for private school tuition. The program was passed in 2024 by both the Alabama Legislature and Governor Kay Ivey, establishing education savings accounts (ESAs) that offer up to $7,000 per eligible student for private or out-of-district public school tuition. For homeschooling families, the act provides $2,000 per student, with a cumulative cap of $4,000 per family.
As of the April 30 application deadline, nearly 37,000 students applied for funding, and by May 8, approximately 22,857 award notices had been issued. The review process for applications is ongoing, with some requests for reconsideration still under evaluation. The eligibility criteria for the upcoming 2025-2026 school year encompass families with adjusted gross incomes below 300% of the federal poverty level, impacting about 75% of families in Alabama.
Lawmakers allocated $180 million for the education savings accounts for the upcoming school year. Any unspent funds from this initiative will revert to the Educational Opportunities Reserve Fund. Currently, an additional 222 students will also receive awards ranging from $2,000 to $7,000, with total funding estimates between $400,000 and $1.6 million still being finalized. Families are required to verify student enrollment by June 30 to receive the maximum awarded amount.
The CHOOSE Act includes participation from over 230 schools, which encompasses not only private institutions but also public schools such as those in Mobile County and Dothan City, the University Charter School, and the Alabama School of Math and Science. Additionally, the program accommodates students with disabilities and military students, allowing for priority registration.
Support for the funding initiative has been widespread among families across all 67 counties in Alabama; however, there are concerns from some lawmakers regarding the potential impact of school choice on public school funding and resources. The initial allocation prioritizes the first 500 approvals for students with disabilities.
The demographic profile of applicants reveals that 59% are white students, with a near even split between male and female applicants, while approximately 13% report having disabilities. McLendon from the Alabama Independent Schools Association highlighted the necessity to monitor the outcomes of education savings accounts on school accessibility and enrollment trends.
There are currently 232 schools and 227 vendors, including tutors and educational service providers, actively participating in the CHOOSE Act. Notably, public schools are prohibited from utilizing CHOOSE Act funds for non-tuition expenses, a measure aimed at preventing double-dipping of funds.
Critics of the CHOOSE Act contend that it diverts necessary funds away from public education, whereas supporters advocate that it enhances options for families, particularly those in low-performing schools. As the program continues to develop, its long-term impact on educational quality and equity will be closely observed.
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Additional Resources
- Al Daily News
- WBRC
- Al.com
- WVTM 13
- Al.com
- Wikipedia: School Choice
- Google Search: Alabama education funding
- Google Scholar: education savings accounts Alabama
- Encyclopedia Britannica: school funding programs
- Google News: Alabama CHOOSE Act
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The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
