Maine and Vermont Town Tuitioning Programs: How Public Tuition for Private and Out-of-District Schools Works

Quick answer: Maine and Vermont have the oldest school choice programs in the country, known as town tuitioning. When a town or school district doesn’t run its own school for certain grades, it pays tuition for resident students to attend another public school or an approved private (independent) school. In Maine, a school administrative unit that neither operates a secondary school nor contracts with one must pay tuition at the public or approved private school of the parent’s choice, up to a set maximum (20-A M.R.S. section 5204(4)). The U.S. Supreme Court ruled in Carson v. Makin (2022) that Maine can’t exclude religious schools from that program. Vermont’s Act 73 of 2025 narrowed which Vermont independent schools can receive public tuition, with grandfathering for students already enrolled. Neither state was on the IRS list of states opting into the federal scholarship tax credit as of October 22, 2026.

Town tuitioning predates vouchers and education savings accounts by more than a century. It grew out of a practical problem: small, rural towns that could not support their own high school (or sometimes any school) still needed to educate their children. Instead of building schools, those towns paid tuition to schools elsewhere. The programs are not open to every family in either state. Eligibility depends entirely on where you live.

For a comparison of the main types of state education funding, see our guide to state education funding programs.

Sources: Maine Revised Statutes Title 20-A, sections 2951 and 5204, as quoted in Carson v. Makin, 596 U.S. 767 (2022) (Supreme Court opinion, June 21, 2022); Vermont Act 73 of 2025 (as enacted), Sec. 21 amending 16 V.S.A. section 828; Vermont Agency of Education, “Act 73: Independent School Frequently Asked Questions” (issued August 13, 2025); IRS list of states participating in the federal scholarship tax credit (as of October 22, 2026). Rules change. Confirm details with your school district, the Maine Department of Education or the Vermont Agency of Education. Last verified October 2026.

What Is Town Tuitioning?

Town tuitioning is a public education arrangement, not a private scholarship. The money comes from the local school district’s budget. In both states, the basic idea is the same:

1. a town or district does not operate a school for some or all grades;
2. resident students attend another school instead; and
3. the district pays tuition to that school on the student’s behalf.

Depending on state law and local decisions, the receiving school might be a public school in another town, an approved private (independent) school, or in some cases a school outside the state.

Families sometimes compare town tuitioning with vouchers. The two overlap: in both, public funds follow the student to a school the family chooses. The key difference is that town tuitioning exists because the district does not run its own school, not because a family qualifies by income or disability. Our article on ESA vs. voucher vs. tax-credit scholarship explains the other models.

Maine's Town Tuitioning Program

Who is eligible

Maine is a largely rural state. In Carson v. Makin, the Supreme Court noted that of Maine’s 260 school administrative units (SAUs), fewer than half operate their own public secondary school. Where a unit doesn’t run one, Maine law gives it options.

Under 20-A M.R.S. section 5204(4), as quoted by the Court, if an SAU neither operates its own secondary school nor contracts with a particular school for its students, the SAU “shall pay the tuition . . . at the public school or the approved private school of the parent’s choice at which the student is accepted.” Payment is limited to a specified maximum rate set in state law.

Some SAUs instead contract with a particular school, public or private, to educate their students. In those towns, families generally attend the contracted school rather than choosing freely. Whether your family gets a choice depends on how your SAU is organized.

Which schools can receive tuition

To be approved for tuition payments, a private school must meet requirements under Maine’s compulsory education law, as the Court described:

• it must either be accredited by the New England Association of Schools and Colleges (NEASC) or approved for attendance purposes by the Maine Department of Education;
• Department-approved schools must meet certain curricular requirements, such as instruction in English, a course in Maine history and a student-teacher ratio of no more than 30 to 1; and
• the program imposes no geographic limit, so parents may direct tuition to schools inside or outside Maine, or even in other countries.

The Court also noted that private schools receiving tuition are not required to accept all students and may charge more than the maximum tuition rate the state will pay. If a school’s tuition is higher than the public payment, families should expect to cover the difference.

Carson v. Makin: religious schools

From 1981 until 2022, Maine limited tuition payments to “nonsectarian” schools. Two families, the Carsons of Glenburn and the Nelsons of Palermo, sued after they were unable to use tuition payments at Bangor Christian Schools and Temple Academy, both NEASC-accredited religious schools.

On June 21, 2022, the U.S. Supreme Court ruled 6 to 3 in Carson v. Makin that Maine’s nonsectarian requirement violated the Free Exercise Clause of the First Amendment. Chief Justice Roberts wrote for the Court, quoting its earlier Espinoza v. Montana decision: “A State need not subsidize private education. But once a State decides to do so, it cannot disqualify some private schools solely because they are religious.” Justices Breyer, Kagan and Sotomayor dissented.

The ruling did not require every religious school to participate. Maine has applied its Human Rights Act to private schools that receive public tuition, and schools must decide whether they will accept the conditions that come with public funding. Ask any school you are considering whether it currently accepts town tuition payments.

Practical steps for Maine families

• Check whether your SAU operates a secondary school, contracts with a specific school or pays tuition at the school of the parent’s choice.
• Apply to and get accepted at the school you want first, since the statute ties payment to a school “at which the student is accepted.”
• Ask the SAU office how and when to designate your chosen school, and what maximum tuition rate applies.
• Ask the receiving school whether it charges more than the public rate, and how the difference is billed.
• If you move, check how tuitioning works in your new SAU, because eligibility is set by residence.

Vermont's Town Tuitioning Program

How it works

Vermont’s tuitioning system also allows districts that do not operate schools for some or all grades to pay tuition for resident students. Tuition can go to Vermont public schools, approved independent schools that meet state criteria, and certain schools in other states, as set out in 16 V.S.A. section 828.

What Act 73 changed

Vermont’s Act 73 of 2025, a broad education reform law, rewrote section 828 to narrow which Vermont independent schools can receive public tuition. Under Act 73, as enacted, a district may pay tuition to an approved Vermont independent school only if the school:

• is located in Vermont;
• was approved by the State Board on or before July 1, 2025;
• is located within a supervisory district, or a supervisory union with one or more member districts, that did not operate a public school for some or all grades as of July 1, 2024;
• had at least 25 percent of its enrollment made up of students attending on district-funded tuition during the 2023–2024 school year; and
• complies with minimum class size requirements, with a possible waiver from the State Board for geographic isolation or an implementation plan.

Act 73 keeps other destinations eligible, including:

• Vermont public schools;
• public schools located in another state;
• independent schools meeting education quality standards;
• independent schools in another state or country approved under that jurisdiction’s laws, subject to reporting requirements; and
• therapeutic approved independent schools, regardless of location.

Grandfathering for current students

The Vermont Agency of Education’s Act 73 FAQ, issued August 13, 2025, explains that a student remains eligible for publicly funded tuition until graduating from the same school, even if that school no longer qualifies under the new criteria, if the student:

1. received publicly funded tuition at an approved independent school in 2024–2025, continues at the same school and remains a resident of a district that paid tuition in 2024–2025; or
2. was accepted, before July 1, 2025, for enrollment in 2025–2026 at an independent school approved for public tuition in 2024–2025, and remains a resident of a district that paid tuition in 2024–2025.

The Agency says a letter of acceptance or enrollment can serve as documentation of acceptance before July 1, 2025. These protections also apply to students attending out-of-state independent schools, as long as the conditions are met. The FAQ adds that the 25 percent threshold applies to all independent schools, including those with seasonal programming.

Practical steps for Vermont families

• Ask your district which grades it operates and which it tuitions.
• Before applying to an independent school, ask the school and the district whether that school is eligible for public tuition under Act 73.
• If your child was grandfathered, keep your acceptance letter, enrollment records and proof of residency.
• Remember that grandfathering ends if your child changes schools or you move out of a tuitioning district.

Vermont families should also expect further changes, because Act 73 set up a broader multiyear restructuring of school governance and funding. Check with the Vermont Agency of Education for current rules each year.

Maine and Vermont Side by Side

Feature	Maine	Vermont
Who qualifies	Residents of SAUs that don’t operate or contract for a school at that grade level	Residents of districts that tuition some or all grades
Who pays	The local school administrative unit	The local school district
Private school eligibility	Approved private schools (NEASC-accredited or Department-approved), in or out of state	Vermont independent schools meeting Act 73 criteria, plus schools meeting education quality standards, approved out-of-state independent schools and therapeutic schools
Religious schools	Can’t be excluded solely because they are religious (Carson v. Makin, 2022)	Subject to the same federal Free Exercise principles
Payment cap	Up to a maximum rate set in state law	Set under Vermont tuition rules
Federal scholarship tax credit opt-in	Not on the IRS list as of October 22, 2026	Not on the IRS list as of October 22, 2026

Town Tuitioning and Homeschooling

Town tuitioning pays a school, not a family. Homeschooling families in Maine and Vermont generally can’t use tuition payments for their own home instruction. Both states regulate home education separately, and you can learn how to find your state’s requirements in our article on homeschool laws by state. Some families pair a homeschool curriculum, such as Miacademy, with local resources, but those costs are paid privately rather than through tuitioning.

The Federal Scholarship Tax Credit and These States

The federal scholarship tax credit under Section 25F of the Internal Revenue Code begins January 1, 2027, allowing a credit of up to $1,700 for donations to qualifying scholarship granting organizations in participating states. States must opt in. As of the IRS list dated October 22, 2026, neither Maine nor Vermont appeared among the 30 participating states. If either state opts in later, families could see new scholarship options beyond town tuitioning. Our guide to private school vs. homeschool scholarship funds explains how scholarship programs differ in what they cover.

Common Questions Families Ask

Can I choose any school I want?

Only if your district pays tuition at the school of the parent’s choice and the school is eligible. Districts that contract with specific schools, or Vermont schools that don’t meet Act 73’s criteria, limit choice.

Does tuitioning cover the full cost?

Not always. Payments are capped. Private schools that charge more may bill families for the difference.

What happens if I move?

Eligibility is based on residence. Moving to a town that runs its own school usually ends tuitioning. If you are relocating, review our article on moving states with an education savings account for general planning tips that also apply to school choice programs.

Who do I contact?

Start with your local school district or SAU office. The Maine Department of Education and the Vermont Agency of Education publish state guidance.

Frequently Asked Questions

What is town tuitioning in Maine and Vermont?

It’s a long-standing public program in which towns or districts that don’t operate their own schools for certain grades pay tuition for resident students to attend other public or approved private schools.

Can Maine tuition payments be used at religious schools?

Under Carson v. Makin (2022), Maine cannot exclude schools solely because they are religious. Whether a particular religious school participates depends on the school and the conditions attached to public funding.

What did Vermont's Act 73 change about tuitioning?

It limited which Vermont independent schools can receive public tuition, requiring among other things that a school had at least 25 percent of its 2023–2024 enrollment on district-funded tuition. Students already enrolled or accepted before July 1, 2025 are grandfathered at their school.

Can homeschoolers use town tuitioning money?

Generally no. Tuitioning pays approved schools, not families.

Are Maine and Vermont part of the 2027 federal scholarship tax credit?

Neither state was on the IRS list of participating states as of October 22, 2026.

The Bottom Line

Town tuitioning gives some Maine and Vermont families publicly funded choices that families elsewhere only get through newer voucher or ESA programs. Whether you qualify depends on where you live and how your district handles the grades your child needs. Maine families benefit from broad choice, including religious schools after Carson v. Makin, while Vermont families should check carefully whether a school still qualifies under Act 73. Call your district office early, confirm eligibility in writing and keep your paperwork.