Alabama Education Funding Programs: CHOOSE Act ESA (2027-28 Dates), Homeschool Options and Accountability Act Scholarships
Alabama's education funding options for parents: the CHOOSE Act education savings account ($7,000 for participating schools, $2,000 per homeschool student capped at $4,000 per family), 2026-27 income limits, priority order, approved expenses through ClassWallet, universal eligibility from 2027-28, and Alabama Accountability Act scholarships. Last verified October 2026.
Quick answer: Alabama’s main program is the CHOOSE Act, which funds education savings accounts (ESAs) as refundable income tax credits. Each award is $7,000 for a student at a participating school or $2,000 for a student in a home education program, capped at $4,000 per homeschool family. For 2026-27, new families needed household income at or below 300% of the federal poverty level (for example $96,450 for a family of four), and applications closed March 31, 2026. Starting with 2027-28, the program opens to all Alabama K5-12 families regardless of income, and the 2027-28 application runs January 4 to March 31, 2027. The Alabama Department of Revenue runs the program with ClassWallet.
Alabama is one of the few states where an education savings account is paid for homeschool students as well as private school students, though at a much lower amount. The program is new, starting in the 2025-26 school year, and it is in the middle of a planned move from income-limited to universal eligibility.
This guide explains the CHOOSE Act amounts, who qualified for 2026-27, how awards are prioritized, what the money can buy, and what to expect for 2027-28. It also covers the older Alabama Accountability Act tax-credit scholarships. For the national picture, see our parent guide to state education funding programs.
Last updated November 1, 2026, against the Alabama Department of Revenue’s CHOOSE Act page, the ALDOR 2027-2028 Family Application Timeline, the CHOOSE Act Alabama Program FAQ, chooseact.alabama.gov, the CHOOSE Act Alabama Parent Guide for 2026-27, and the Alabama State Department of Education’s homeschool page. Program rules and amounts can change by law, so confirm details with the department. This article is general information, not legal, tax or financial advice.
What the CHOOSE Act Is
The Creating Hope and Opportunity for Our Students’ Education Act of 2024, known as the CHOOSE Act, was signed by Governor Kay Ivey on March 7, 2024. According to the Alabama Department of Revenue (ALDOR), it makes refundable income tax credits called education savings accounts available to support eligible K5-12 students. The money is used for tuition, fees and other qualified education expenses through approved education service providers.
Who runs it
ALDOR administers the program and has contracted with ClassWallet to support families and distribute funds. Families with general questions can contact ClassWallet at help@classwallet.com or 877-313-2125, Monday to Friday 7 a.m. to 7 p.m. Central and Saturday 9 a.m. to 3 p.m. Central, according to ALDOR. The program website is chooseact.alabama.gov.
How it differs from a voucher
Because the award is structured as an account rather than a single payment to a school, parents can spend it across several approved providers, within the rules. Our explainer on ESAs, vouchers and tax-credit scholarships covers the differences between the models.
Award Amounts for 2026-27
The CHOOSE Act sets two amounts, and the 2026-27 Parent Guide confirms them for this year:
| Student type | ESA amount | Deposit timing |
|---|---|---|
| Enrolled in a participating school | $7,000 per student | Beginning July 1, 2026 |
| In a home education program (individual or group program, homeschool, co-op) | $2,000 per student, capped at $4,000 per family | Beginning July 1, 2026 |
How the homeschool family cap works
The Parent Guide explains that a family with several homeschool students approved for the program will see all eligible students in ClassWallet, but only two student accounts will show funds of $2,000 each. Those funds can be used for any of the family’s eligible students, while the total stays capped at $4,000. Each student’s account is still an individual ESA, and computer and technology purchase limits apply per student.
Key money rules
The guide lists three rules that families often miss:
- All payments and purchases must be made through ClassWallet. There is no reimbursement to families.
- If a student leaves or is removed from the program, any remaining funds return to the CHOOSE Act Fund.
- Expenses can only be paid with funds awarded for the academic year the expense belongs to.
Families are also responsible for any costs above the ESA balance, such as tuition that exceeds $7,000.
Who Was Eligible for 2026-27
The Parent Guide lists the 2026-27 requirements. The student must be in grades K5 through 12, be an Alabama resident, and have household income no higher than 300% of the federal poverty guideline for the 2025 tax year.
| Household size | 300% of 2025 federal poverty guideline |
|---|---|
| 1 | $46,950 |
| 2 | $63,450 |
| 3 | $79,950 |
| 4 | $96,450 |
| 5 | $112,950 |
| 6 | $129,450 |
| 7 | $145,950 |
| 8 | $162,450 |
For larger households, the guide says to add $16,500 for each additional person.
Other eligibility details
- Kindergarten students must turn 5 by September 1, 2026.
- Students enrolled in a participating public school must provide proof of out-of-district tuition.
How Awards Are Prioritized
The number of ESAs is limited by funding, so ALDOR awards them in a set order. For 2026-27, among families at or below 300% of the poverty level, ALDOR’s page lists:
- The first 500 ESAs go to participating students with special needs.
- Next priority goes to students awarded an ESA the previous year.
- Next come students who are dependents of active-duty service members and who are enrolled in or assigned to a priority school.
- Remaining ESAs go to students based on the family’s income as a percentage of the federal poverty level, lowest first.
Siblings of participating students also receive priority. The Parent Guide defines a priority school as a public K5-12 school that received a D or F on its most recent Alabama State Department of Education report card.
The 2026-27 timeline
Governor Ivey’s office announced that the renewing family portal opened December 15, 2025, the new family portal opened January 2, 2026, both closed March 31, 2026, and award notifications were scheduled for April 15, 2026. Funds were deposited beginning July 1, 2026.
What Changes in 2027-28
For 2027-28 and later, the governor’s announcement says the program is open to all families regardless of income. ALDOR’s page shows the same priority structure continuing: the first 500 ESAs for students with special needs, then returning participants, then dependents of active-duty service members at priority schools, then the remaining awards based on family income as a percentage of the poverty level.
What that means in practice
Universal eligibility means any Alabama K5-12 family can apply. It does not mean every applicant will be funded, because awards are still limited by the money available and ranked by priority and income. Higher-income families applying for the first time will be ranked after lower-income applicants.
Renewals
ALDOR has now posted the 2027-28 dates. New and renewing families both apply in the same window, and the application plus every eligibility document must be uploaded by March 31; ALDOR says no application or document will be accepted after that date. Our step-by-step ESA application checklist can help you prepare documents ahead of time.
The 2027-28 timeline
| Date (2027) | What happens |
|---|---|
| January 4 to March 31 | Application open for new and renewing families; all eligibility documents due by March 31 (special needs or military documents too, if they apply) |
| Starting May 3 | Award or denial notices sent |
| Before June 30 | Proof of school type: proof of enrollment at a participating school for the $7,000 award, or proof of unenrollment from the public school district for the $2,000 home education award |
| Beginning July 1 | ESA funds deposited in ClassWallet; a parent signs the affidavit for each student |
| July 1, 2027 to June 30, 2028 | Funds must be used within the academic year; unused funds return to the CHOOSE Act Fund |
Documents you need
The ALDOR FAQ lists three required documents: your most recent Alabama income tax return (2025 or 2026 for the 2027-28 application), a state-issued ID or other proof of residency, and a birth certificate for each student. Income still matters after the income limit ends, because ALDOR uses adjusted gross income as a percentage of the federal poverty level to rank awards. You choose the $7,000 participating school ESA or the $2,000 home education ESA on the application, and the FAQ says you cannot switch award types after the March 31 deadline.
What CHOOSE Act Funds Can Pay For
The 2026-27 Parent Guide lists approved expense categories in detail. A summary:
Tuition and fees at a participating school
Tuition and many school fees are approved, including academic, application, book, curriculum, enrollment, lab, technology and testing fees. The guide lists disallowed school fees too, such as athletic fees, before- and after-school child care, building campaigns, extracurricular fees, field trips, food, fundraising, insurance, late fees, transportation and uniforms.
Textbooks, curriculum and supplies
Textbooks (including audiobooks) in approved subjects are covered: art, English language arts, foreign languages, mathematics, music, religion, science (including computer science and engineering) and social studies. Curriculum, workbooks, reference books, supplemental reading and approved dual enrollment classes at in-state colleges also qualify. Instructional materials for individual student use, such as calculators, art supplies, science kits, globes and math manipulatives, are allowed; toy-like items such as LEGOs and puzzles are not.
Computers and technology
The guide limits computers to one laptop, desktop or tablet under $1,200 per participating student every two academic years. Technological aids such as monitors, printers and keyboards have their own caps, and technology device purchases are limited to $500 total per student per year. Items identified as gaming are not approved.
Tutoring, therapies and online programs
Private tutoring in approved subjects, in person or online, is covered, as are educational therapies for students with disabilities from licensed or accredited practitioners, including ABA, dyslexia and dysgraphia therapies, occupational, physical, speech and vision therapy, and initial evaluations. Tuition and fees for approved nonpublic online learning programs also qualify.
Who can be paid
Providers must be approved by ALDOR as education service providers and registered with ClassWallet. The guide says private tutors must be accredited or hold a bachelor’s degree or state certification, therapists must be licensed, and both need a background check. A parent cannot be paid as a provider for their own child. For a broader comparison of allowed expenses across states, see our guide to what education savings account funds can pay for.
The affidavit step
Before funds can be used, a parent must accept the CHOOSE Act Alabama affidavit for each participating student in ClassWallet. The guide notes that the affidavit appears only after the account is funded. Choosing “Reject” withdraws the student, so contact ClassWallet if it is selected by mistake.
Alabama Accountability Act Scholarships
Before the CHOOSE Act, Alabama created tax-credit scholarships under the Alabama Accountability Act. Individuals and businesses donate to approved scholarship granting organizations (SGOs) and receive an Alabama tax credit, and the SGOs award scholarships for private school tuition.
Who qualifies
ALDOR’s Alabama Accountability Act page and the state administrative code set the rules. Student eligibility is generally limited to lower-income households; the administrative code uses a limit of 185% of the federal poverty level, with income verified periodically. Each SGO runs its own application and works with participating schools, so ask the private school which SGO it uses.
Using both programs
Rules on combining an Accountability Act scholarship with a CHOOSE Act ESA can change, so ask both the SGO and ClassWallet before counting on both for the same year.
Comparing Alabama's Options
| Program | Type | 2026-27 eligibility | Homeschool use | Administrator |
|---|---|---|---|---|
| CHOOSE Act ESA | Refundable tax credit held as an ESA | Alabama K5-12 residents up to 300% of poverty; universal from 2027-28 | Yes, $2,000 per student, $4,000 per family | Alabama Department of Revenue with ClassWallet |
| Alabama Accountability Act scholarship | Tax-credit scholarship | Lower-income households, set by law and each SGO | No | Scholarship granting organizations |
The homeschool award is smaller than in some states. Our guide to whether homeschoolers can use state education funds compares how other states treat home education.
Homeschooling in Alabama
The CHOOSE Act homeschool award does not change Alabama’s homeschool rules. Alabama has no separate homeschool statute; instead, the Alabama State Department of Education lists three legal options, each set out in the Code of Alabama.
| Option | What it means | Paperwork |
|---|---|---|
| Church school (often called a cover school) | A K-12 school run as a nonprofit ministry of a local church, group of churches, denomination or association of churches that receives no state or federal funding (Ala. Code 16-28-1) | Enrollment and attendance are filed with the local public school superintendent on the superintendent’s form (Ala. Code 16-28-7); the church school usually handles attendance records |
| Private school | Parents can also qualify a home school as a private school under Ala. Code 16-28-1 and related sections | Follow the private school rules ALSDE cites, including 16-28-7 and 16-28-8 |
| Private tutor | Instruction by a person who holds a certificate from the State Superintendent of Education, at least 3 hours a day for 140 days a year between 8 a.m. and 4 p.m., in English, covering the subjects taught in public schools (Ala. Code 16-28-5) | Before teaching, the tutor files a statement with the county or city superintendent listing the children, subjects and period of instruction, and keeps a daily register of hours and attendance |
How homeschoolers use the CHOOSE Act
- The $2,000 home education ESA covers students in individual or group programs, homeschools, co-ops, microschools that are not approved participating schools and online individual or group programs, according to the ALDOR FAQ.
- A student enrolled full time in a public virtual school, district or statewide, cannot receive the $2,000 award.
- For 2027-28, the timeline says home education families must submit proof of unenrollment from the public school district before June 30, 2027. When switching from a participating school to homeschooling for 2026-27, the FAQ says families upload a notice of intent to homeschool from a cover school or from the local public school district.
- The cap is $4,000 per family; ClassWallet shows funds in two student accounts of $2,000 that can be spent for any of the family’s eligible students.
For a broader view of how to find and follow your state’s requirements, see our guide to homeschool laws by state and our step-by-step guide to starting homeschooling.
Alabama Opportunity Scholarship Participating Schools: How to Check Eligibility
To use an Alabama Accountability Act scholarship (such as those issued by the Alabama Opportunity Scholarship Fund or other state-approved Scholarship Granting Organizations), the school must be registered as a qualifying nonpublic or public school with the Alabama Department of Revenue (ALDOR). Before submitting your tuition paperwork:
- Verify the School’s Active SGO & CHOOSE Act Status: Check the official SGO participating school directory or the CHOOSE Act Alabama Education Service Provider (ESP) portal to confirm your private school accepts the scholarship for the current academic year.
- Confirm Grade-Level Seat Availability: Scholarship awards do not guarantee admission; families must complete the participating private school’s standard admissions and enrollment steps first.
- Do Not Stack CHOOSE Act ESA + SGO Funds for the Same Tuition Dollar: Review program rules carefully so you know whether your family is applying through an SGO or the CHOOSE Act ESA pathway.
Alabama Private School Tax Credit & Accountability Act Rules Explained
When parents search for an Alabama private school tax credit, there are two distinct mechanisms created under the Alabama Accountability Act of 2013 (as amended) and the CHOOSE Act of 2024:
- Parent Transfer Tax Credit (Public-to-Qualifying School Transfer): Eligible Alabama parents who transfer a student from a designated priority public school to a qualifying nonpublic or public school may claim a refundable Alabama income tax credit to help offset tuition and mandatory fees, subject to ALDOR verification.
- Donor Tax Credit for Scholarship Granting Organizations (SGOs): Individual and corporate Alabama taxpayers receive a dollar-for-dollar state tax credit (up to statutory caps) when donating to approved SGOs that fund need-based K–12 private school scholarships.
- CHOOSE Act Education Savings Accounts (ESAs): Administered by ALDOR, the CHOOSE Act provides refundable tax-credit-backed Education Savings Accounts (up to $7,000 per participating private school student or $2,000 per homeschooled student, capped at $4,000 per homeschool household) for qualifying expenses.
Frequently Asked Questions
How much is the Alabama CHOOSE Act ESA?
$7,000 per student enrolled in a participating school, or $2,000 per student in a home education program, capped at $4,000 per family, according to ALDOR and the 2026-27 Parent Guide.
Is the CHOOSE Act open to everyone?
For 2026-27, new families needed household income at or below 300% of the federal poverty level. Starting in 2027-28, the program is open to all Alabama K5-12 families regardless of income, though awards are still limited by funding and ranked by priority.
Can I still apply for 2026-27?
No. The 2026-27 application portals closed at midnight on March 31, 2026. The next window is for 2027-28: it opens January 4, 2027, and closes at midnight on March 31, 2027, with award notices starting May 3, 2027.
How do I legally homeschool in Alabama?
ALSDE lists three options: enroll in a church (cover) school, operate as a private school, or teach through a certified private tutor. Church school enrollment and attendance are filed with the local superintendent, and a private tutor must file a statement before starting and teach at least 3 hours a day for 140 days.
Can I get reimbursed for things I bought myself?
No. The Parent Guide says all purchases must be made through ClassWallet and there is no reimbursement to families.
What happens to leftover funds?
Expenses must be paid with funds for the year they belong to, and if a student leaves or is removed from the program, remaining funds return to the CHOOSE Act Fund.
Who should I contact with questions?
ClassWallet handles general program and platform questions at help@classwallet.com or 877-313-2125. Suspected fraud or misuse can be reported to ALDOR at chooseactmisuse@revenue.alabama.gov.
Sources
- Alabama Department of Revenue, CHOOSE Act page, 2027-2028 Family Application Timeline and CHOOSE Act Alabama Program FAQ (checked November 1, 2026).
- Alabama State Department of Education, Homeschool; Code of Alabama 16-28-5.
- CHOOSE Act Alabama Parent Guide, 2026-2027 School Year (updated July 27, 2026), via ClassWallet.
- Office of the Governor of Alabama, “Governor Ivey Announces CHOOSE Act Family Applications for 2026-2027 School Year” (December 3, 2025).
- Alabama Department of Revenue, Alabama Accountability Act page; Alabama Administrative Code chapter 810-3-61.
