Time running out for Alabama CHOOSE Act applications: More than 27,000 students signed up

Alabama families have one more week to apply for education savings accounts through the state’s new school choice program.

The CHOOSE Act allows eligible students to receive up to $7,000 in tax credits that can be used for private school tuition.

Homeschoolers can receive $2,000, or up to $4,000 per family, for other educational expenses.

Eligibility will be determined by household income and certain student needs.

Applications close April 7 and will begin to be disbursed for use from July 1 to June 30 of the upcoming school year.

“Taxpaying Alabama families want school choice, and our ESA program, the CHOOSE Act, is providing that unique opportunity,” Gov. Kay Ivey said in a news release.

“This program gives Alabama students greater flexibility to pursue educational options that meet their individual needs. I urge eligible students to take advantage of this opportunity and apply before the April 7 deadline.”

In its first year, the program is open to all students whose household income meets 300% of the federal poverty level.

For a family of four, that’s about $93,600 – which officials said covers about 75% of families in the state.

The first 500 ESAs will be given to students with disabilities. Additional priority will be given to:

  • Children of active-duty military service members who attend priority schools
  • Siblings of participating students
  • Low-income students

The Alabama Department of Revenue is overseeing the CHOOSE Act.

So far, ALDOR has approved at least 220 private schools and several dozen tutors, vendors and other service providers to accept ESAs this year.

(Can’t see the table? View it here.)

More than 27,000 students have applied to the program since January, according to the governor’s office.

The majority of current applicants already attend private schools or are homeschooled, AL.com found.

Officials have allocated $100 million to the program in its first year, which would cover up to 14,000 accounts.

All students, regardless of income or needs, can apply for the program starting in the 2028-29 school year.

How do I apply for a CHOOSE tax credit?

To apply, participants need to provide a birth certificate, proof of residency and proof of income. Additional documentation may be required if a student has a disability.

Payments do not go into the parent’s pocketbook or into their own wallets. They must coordinate through ClassWallet’s portal for those transactions.

If there are any funds left after that year, they are rolled back into the state’s CHOOSE Act fund. However, once a child is in the program, they’re given preference for the next year.

Under the current law, public school students may use ESAs if the school they plan to enroll in charges tuition. Some students who are not currently enrolled in public schools may be able to use funds for some services or classes that public schools provide.

Officials encourage families to direct any questions to ALDOR or to ClassWallet, the company helping to administer the program. Contact information and other parent resources are available at chooseact.alabama.gov.