Alaska Education Funding Programs: Correspondence School Allotments and the 2027 Federal Credit Explained

Quick answer: Alaska’s main education funding option for families is the public correspondence study program. School districts that run correspondence programs may give parents an annual student allotment to pay instructional expenses in the child’s individual learning plan (ILP). Parents can buy nonsectarian services and materials from public, private or religious organizations if they are required by the ILP, approved by the district, appropriate for the student and aligned to state standards. Allotments cannot pay family members for services. In March 2025 the Alaska Supreme Court reversed a ruling that had struck down the allotment law. Alaska is also on the IRS list of states participating in the federal scholarship tax credit beginning in 2027.

Alaska does not have a voucher, an education savings account or a state tax-credit scholarship for families. What it has instead is decades of public correspondence schooling, born from the realities of remote communities, plus a statute that lets districts give each enrolled student a yearly allotment. For many families, that allotment works much like an ESA, but with a public school teacher and a learning plan attached.

This guide explains how correspondence programs and allotments work, what the courts have said and what independent homeschoolers should know. For a national comparison, see our guide to state education funding programs.

Sources: Alaska Statutes 14.03.300 (individual learning plans) and 14.03.310 (student allotments); Alaska Supreme Court, State of Alaska, Department of Education & Early Development v. Alexander, Opinion No. 7759 (March 28, 2025); Alaska Statutes 14.30.010 (compulsory attendance exemptions); IRS, Federal Scholarship Tax Credit participating states list (updated October 22, 2026). Allotment amounts and approved vendors are set by each district. This is general information, not legal advice. Last verified October 2026.

Alaska's Approach at a Glance

Feature	Correspondence study with student allotments
Type	Public school program (homeschool-style) with an optional per-student allotment
Run by	School districts that offer correspondence study
Legal basis	AS 14.03.300 (ILP) and AS 14.03.310 (allotments)
Who plans the learning	The student, parents and a certificated teacher, through an ILP
What allotments buy	Nonsectarian services and materials required by the ILP and approved by the district
Who sets the amount	Each district program
Key limit	No payments for services provided by family members
Status	Alaska Supreme Court reversed the ruling that struck down the statutes (March 28, 2025)

If you are sorting out program types, our ESA vs. voucher vs. tax-credit scholarship explainer helps place Alaska’s model alongside the others.

How Correspondence Study Works

Correspondence study is part of Alaska’s public school system. Students learn mostly at home, but they are enrolled in a district program and work with a certificated teacher. The Alaska Supreme Court’s 2025 opinion notes that correspondence study has been part of Alaska public schooling “for decades,” and that the Department of Education and Early Development has long had authority to supervise district programs.

The individual learning plan

Under AS 14.03.300, every correspondence student must have an ILP developed in collaboration with the student, the student’s parents and a certificated teacher. The plan must provide a course of study consistent with district standards, include monitoring and required statewide assessments and allow changes if the student is less than proficient in a core subject. The statute also says the department may not impose extra requirements on a student who scores proficient or advanced on statewide assessments.

Who runs the programs

Districts, not the state, operate correspondence programs and approve ILPs and purchases. The Supreme Court’s opinion observes that the department did not operate its own correspondence program at the time of the case. Because programs are local, families often compare several statewide-enrollment district programs before choosing one.

What Allotments Can Pay For

AS 14.03.310 lets the department or a district that provides a correspondence program give a parent an annual allotment “for the purpose of meeting instructional expenses.” A parent may buy nonsectarian services and materials from a public, private, or religious organization if:

1. the services and materials are required for the course of study in the student’s ILP;
2. textbooks, services, curriculum materials and the course of study are approved by the district, appropriate for the student and aligned to state standards, and comply with two other statutes on curriculum materials; and
3. the purchase otherwise supports a public purpose.

The Supreme Court described examples the parties generally agreed were acceptable: books, computers and art supplies from private businesses; martial arts classes at a private gym; pottery lessons at an artist’s studio; and classes at the University of Alaska. The court also noted that the constitutional convention delegates appeared to accept that public funds could buy a homeschool curriculum from a private organization.

What allotments cannot pay for

• Family members. Allotments may not pay for services provided by a student’s spouse, guardian, parent, stepparent, sibling, stepsibling, grandparent, stepgrandparent, child, uncle or aunt.
• Sectarian materials. Purchases must be nonsectarian.
• Anything outside the ILP or not approved by the district.

Where the money goes when a student leaves

Districts must track each student’s unspent balance while the student remains enrolled and to return unspent balances for students who leave the program. Districts must keep records of allotments and spending and monitor expenditures. If you switch programs mid-year, ask how your remaining balance is handled.

The Court Case Parents Should Know About

In 2023, four parents of public school students sued the state, arguing that the ILP and allotment statutes violated article VII, section 1 of the Alaska Constitution, which says no public funds may be paid “for the direct benefit of any religious or other private educational institution.” A superior court agreed and struck down both statutes in full.

On March 28, 2025, the Alaska Supreme Court explained its earlier summary order reversing that judgment. The court held that the statutes were not facially unconstitutional because they have “a plainly legitimate sweep,” meaning a substantial number of constitutional uses. The court pointed out that many purchases, such as supplies, lessons and university classes, do not directly benefit a private educational institution.

Importantly, the justices did not decide whether using allotments to pay full-time private school tuition is constitutional. It said the parties had not briefed whether the statutes even allow that use and that the school districts that approved such spending were not parties to the case. It sent the case back to the superior court for further proceedings.

What this means for families: allotments for ordinary instructional purchases continue, but using allotments for private school tuition remains an open legal question. Follow your district program’s current policy and ask before spending on any private school classes.

A Short History of Allotments

The Supreme Court’s opinion lays out how today’s system developed:

• Before 2014, correspondence programs ran under department regulations. Those rules already allowed an allotment for educational expenses, required at least monthly teacher contact and quarterly reviews, and barred spending on items such as family travel, recreational memberships and religious curriculum.
• In 2014, language from an earlier bill was added to an omnibus education law, creating AS 14.03.300 and 14.03.310. That gave the ILP requirement and the allotment program a footing in statute and allowed purchases from public, private or religious organizations.
• In 2015, the department revised its regulations. Expenses had to reasonably relate to the student’s instructional needs and be approved by a certificated teacher or program director, and monthly teacher contact became required only for students scoring below proficient.
• In 2024, after the superior court’s ruling, the Legislature passed temporary legislation authorizing allotments only to carry out a student’s ILP. That law expired July 1, 2025.
• In 2025, the Supreme Court reversed the superior court, restoring the statutes while leaving the private school tuition question for further proceedings.

Knowing this history helps explain why district policies can shift. When rules or court rulings change, programs update their approved-vendor lists and spending guidance, so check your program’s handbook each year.

How to Get Started

1. Compare district correspondence programs. Look at allotment amounts, approved vendors, teacher contact and the subjects offered.
2. Enroll and meet your assigned teacher. Together you will build the ILP.
3. Plan purchases from the ILP. Each purchase should connect to a course in the plan.
4. Use approved vendors and follow the reimbursement or purchase-order process. Programs handle payments differently.
5. Complete required assessments. Statewide assessment participation is part of the ILP framework.
6. Keep records. Save receipts and course records in case of review.

Our article on what education savings account funds can pay for offers a useful comparison of allowed purchases in other states.

Questions to Ask a Correspondence Program

• What is the annual allotment for my child’s grade, and when is it available?
• Which vendors and curricula are already approved?
• How often will we meet with the certificated teacher?
• How are purchases made: reimbursement, purchase order or program store?
• Can allotments pay for lessons, tutoring or university classes?
• What happens to unspent funds at year end or if we leave?
• What is your current policy on classes at private schools, given the pending case?

Independent Homeschooling in Alaska

Families may also homeschool without enrolling in a correspondence program. Alaska’s compulsory attendance law, AS 14.30.010, exempts a child who is educated at home by a parent or legal guardian, and it separately exempts a child enrolled in a state-approved full-time correspondence program. Independent homeschoolers receive no allotment, but they also have no ILP, teacher oversight or state assessment requirement under the correspondence framework.

The choice comes down to trade-offs: correspondence programs offer public funding and support in exchange for district approval and accountability, while independent homeschooling offers full control without public money. For a broader look at the question, see can homeschoolers use state education funds.

The 2027 Federal Scholarship Tax Credit in Alaska

The IRS explains that beginning January 1, 2027, individuals may claim a Federal Scholarship Tax Credit of up to $1,700 for certain cash contributions to Scholarship Granting Organizations in participating states. Alaska is on the IRS list of participating states for 2027 (updated October 22, 2026).

Because Alaska has no state tax-credit scholarship program, any scholarships funded through the federal credit would be a new source of help for families. Watch for scholarship organizations in Alaska to announce programs once the federal credit takes effect.

Mistakes to Avoid

• Buying first, planning later. Purchases must be tied to the ILP and approved by the district.
• Paying relatives. Grandparents, aunts, uncles and siblings cannot be paid from an allotment, even if qualified.
• Buying religious curriculum with allotment money. Allotment purchases must be nonsectarian.
• Assuming private school tuition is allowed. The Supreme Court left that question open.
• Losing track of the balance when switching programs. Unspent funds go back to the program when a student leaves.
• Skipping assessments. Statewide assessments are part of the ILP framework, and proficiency affects how much extra oversight applies.

For more pitfalls families run into with flexible education funds, see our list of common mistakes with state education funding.

Frequently Asked Questions

Does Alaska have school vouchers or an ESA?

No. Alaska’s main funding option is the public correspondence program with a district-set student allotment.

How much is an Alaska correspondence allotment?

It depends on the district program. AS 14.03.310 authorizes allotments but does not set a statewide amount.

Can Alaska allotments pay for private school?

The Alaska Supreme Court did not decide that question in its March 2025 ruling. Ask your district program about its current policy.

Can I homeschool in Alaska without a correspondence program?

Yes. AS 14.30.010 exempts children educated at home by a parent or legal guardian, though independent homeschoolers do not receive allotments.

Is Alaska participating in the federal scholarship tax credit?

Yes. Alaska appears on the IRS list of participating states for 2027.

The Bottom Line

Alaska funds home-based education through public correspondence programs that pair a certificated teacher and an individual learning plan with a yearly allotment. The 2025 Supreme Court ruling kept allotments in place for ordinary instructional purchases while leaving private school tuition unresolved. Compare district programs, plan purchases through your ILP, avoid paying family members and watch for federal-credit scholarships in 2027.