Alabama launches new $7,000 school choice tax credits: What to know

Families of about 23,000 Alabama students can start using public funds for private education, beginning this week.

The CHOOSE Act allows families to apply for up to $7,000 in education savings accounts that can be spent on private school tuition or home education. Funds are available starting July 1 for eligible private and homeschool services.

According to the Alabama Department of Revenue, which administers the program, students from every grade level applied for funding this year.

“Our CHOOSE Act education saving accounts are officially ready to support thousands of Alabama families and students with their unique educational needs,” Gov. Kay Ivey said in a news release. “In just the first year, our state’s ESA program is incredibly popular, providing opportunity, flexibility and choice when it comes to our children’s education. I am excited to see the program in action this year.”

Ivey said that “just over 23,000” students got approval to use $124 million for the program, a slight revision downward from previous numbers shared by the Department of Revenue. Families had until June 30 to provide proof of enrollment in order to get the money. A spokesman for the department, however, said there were “various other reasons” for the adjustment.

The majority of approvals went to students currently enrolled in private school who plan to stay in private school, AL.com found. State public schools currently enroll about 720,000 students.

AL.com wants to hear from families participating in the program. What are you using the credits for? What questions would you like us to help answer?

Homeschoolers can also receive up to $2,000 per student for eligible expenses, for a maximum of $4,000 per family.

Ivey says the program puts parents “in the drivers seat” of their children’s education. As the program kicks off, lawmakers say it will be up to families, not the state, to decide what success looks like for their kids.

Approved families should receive an email soon from ClassWallet with instructions on how to access and use their funds.

Applications for the 2026-27 school year will open in January 2026.

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