Alabama's School Choice Program
Creating Hope and Opportunity for Our Students’ Education Act of 2024: The CHOOSE Act
PARTICIPATING SCHOOLS
$7,000 per participating K5-12 student/year
HOME EDUCATION
$2,000 per student/year (Capped at $4,000 per family)
The CHOOSE Act, signed into law by Gov. Kay Ivey on March 7, 2024, provides families of eligible K5-12 students in Alabama with Education Savings Accounts (ESAs) to cover tuition and qualified educational expenses. For the 2026-2027 academic year, the application window for renewing families runs from mid-December through March 31, and for new families from January 2 through March 31. This page outlines the specific requirements, timelines, and approved expenses for both participating families and Education Service Providers (ESPs).
Family Income Eligibility Phase-In:
- Year 1 (2025-2026): Adjusted Gross Income (AGI) must not exceed 300% of the federal poverty level.
- Year 2 (2026-2027): AGI must not exceed 300% of the federal poverty level.
- Year 3 (2027-2028) & Beyond: Universal eligibility for all Alabama K5-12 students (income requirement is eliminated).
While participation in the CHOOSE Act is not a requirement for AISA members, we do encourage school leaders and their familes to explore their options and make decisions based on their respective goals and needs.
Information for Parents & Guardians
Eligibility & Program Phasing
- Student Requirements: Must be an Alabama resident in grades K5 through 12.
- Income Threshold (Years 1 & 2): Family adjusted gross income must not exceed 300% of the federal poverty level.
- Universal Eligibility (Year 3 & Beyond): Income threshold is eliminated, opening eligibility to all Alabama K5-12 residents.
For the 2026-2027 school year, family applications closed on March 31. Award notifications went out to all families beginning on April 15, 2026. Applications for the 2027-2028 school year have not yet opened.
Priority Recipients:
- The first 500 ESAs awarded for participating students* with special-needs
- Participating students* previously awarded in the prior academic year
- Participating students* who are dependents of active-duty service members enrolled in or assigned to a priority school
Required Application Documentation
To apply via the ClassWallet / FACTS portal, families must submit:
- Proof of Alabama Residency: Recent utility bill, driver’s license, voter registration card, or lease/mortgage statement.
- Proof of Income: Federal/state tax return, W-2, 1099, SNAP/TANF statement, or Social Security statement.
- Student Identification: Official student birth certificate.
- Priority Status Verification: Documentation verifying special-needs status or active-duty military deployment (if applicable).
Parents can only direct payments from their student’s ESA account to an ESP through the platform. Payment for services can be made before or after the service has been rendered. However, invoices will be approved only for services provided within an academic year for which a tax credit has been awarded.
Note: There is no reimbursement or refund of any ESA funds directly to a parent of student. Any funds left in the ESA at the end of an academic year will be returned to the CHOOSE Act fund. Leftover funs will not rollover year to year.
Information for Member Schools & ESPs
As of early October 2024, ESPs can now begin applying to participate in the CHOOSE Act.
- Year-Round Application: Schools can apply to participate in the program at any time directly through ClassWallet.
- 14-Day Approval Window: ALDOR notifies applicants of approval status within 14 days of submission.
- Standardized Assessment Rule: ESPs must administer an annual standardized test to participating students and submit school-level test results to ALDOR. Special-needs students for whom standardized testing is not appropriate are exempt from the testing requirement.
- Equal Pricing Terms: ESPs must agree not to discriminate against participating students when setting tuition or fees.
ESPs must submit all required documentation to the Department of Revenue in order to participate in the program, as listed in the guidelines. These include, but are not limited to, the ESP’s verification of accreditation, maximum number of students who can enroll, tuition and fees, and financial statements that demonstrate the school’s ability to provide for students’ continued education in the event the school suffers a financial failure.
Among other requirements, ESPs must agree to submit annual reports to the department regarding the number of students participating, services provided, and the amount received for all qualifying expenses. ESPs must also agree not to discriminate against participating students in setting tuition or fees.
Qualifying Education Expenses
Once a student’s ClassWallet account is funded and the affidavit accepted, participants can shop through the integrated ClassWallet Marketplace and issue payments to ESPs (schools, tutors, etc.)
Eligible expenses include, but are not limited to:
- Tuition, and the following fees:
- Enrollment and registration fees
- Student fees
- Activity fees
- School fee
- Security fee
- Programming fee
- Administration fee
- Technology fee
- Supply fees
- Textbooks
- Fees for after-school or summer education programs provided by the participating ESP
- Private tutoring, as outlined in the guidelines.
- Curricula or instructional materials, as outlined in the guidelines.
- Computers
- Laptop, desktop or tablet computers that have a cost not exceeding $1,200. Computers can be purchased every two years, as defined in the guidelines.
- Certain technological aids are limited to $500 per academic year for participating students
Expenses that are NOT eligible include, but are not limited to:
- Athletic fees
- Missed session/cancellation fees
- Late fees
- Capital or building fees
- Commitment fees
- Transportation fees
- Food
- Field trip fees
- Child-care fees
- Uniforms
CHOOSE Act FAQ
Below, we have compiled some of the frequently asked questions that we’ve had in our office and from speaking with our other non-public school partners around the state. For more information, please visit the CHOOSE Act Alabama website.
The CHOOSE Act, now law, went into effect in the 2025-2026 school year, granting parents the opportunity to enroll their children in a participating school of choice with the aid of a $7,000 educational spending account. There is also an option for parents of students enrolled in homeschool, or non-participating schools, with a lower funding amount. For the purposes of this FAQ, we will focus on traditional students and our member schools. Initial funding for these ESAs will be not less than $100 million. However, due to high demand, state lawmakers approved an increase in funding to at least $180 million.
Initially, eligibility for the first two years will be based on income criteria, with families of four earning approximately $95,000 or less, students with special needs and active-duty service members enrolled in or assigned to a priority schools. Preference will be given to the first 500 spots for students with special needs. After the initial phase of two years, the income threshold will be removed, but priority will be given to economically disadvantaged families.
Family applications are open for a limited time several months prior to the start of the academic school year being applied for. Due to high demand, families are encouraged to apply as soon as possible.
To sign up for updates, please visit the ClassWallet website for Alabama.
The Department of Revenue (DOR) has officially selected ClassWallet as the platform vendor for the program. ClassWallet is a well-established vendor used by ESA programs in other states. Additionally, they have partnered with FACTS for the application process, which many of our member schools are already familiar with.
These ESAs will be used by parents to make qualifying purchases from a participating ESP. To read more about this process, and qualified expenses, click here.
The Department of Revenue (DOR) has also chosen Markstein, a marketing firm out of Birmingham, to manage the program’s promotional materials. You can also sign up for email updates through the Department of Revenue’s website.
This indicates their commitment to effectively promoting the program and providing timely, accurate information to families and schools. Additionally, AISA will provide the latest updates on the CHOOSE Act on this page, as well as across our digital platforms.
The decision to participate lies with each individual school. Of the AISA’s 108 members, 101 are listed as approved ESPs. ClassWallet maintains a current list of approved ESPs on its website.
This legislation doesn’t alter admissions policies, school mission or educational freedoms; it merely empowers parents to choose the best-fit educational setting for their children. Participating schools will not be recipients of state or federal funds through participation in this program. We are confident that the CHOOSE Act will allow our member schools to reach more families in the communities we serve and have generational impact.
The funding for these opportunities is held separately and doesn’t affect public school funding calculations. The CHOOSE Act aims to empower parents by providing educational options beyond their residential district. The hope is that increased choice will foster healthy competition, benefiting both students and schools alike.
The CHOOSE Act Impact: One Year In
Following the first year of the CHOOSE Act, Auburn University's Plains Research Consortium surveyed school leaders from AISA. The findings highlight the significant early impact of the legislation.
School Actions Since CHOOSE Act Passage
Note: Percentages do not sum to 100% because participants could select more than one option.
School Outcomes Since CHOOSE Act Passage
Note: Percentages do not sum to 100% because participants could select more than one option.