Missouri Education Funding Programs: MOScholars Scholarship Accounts Explained for 2026-27
Missouri education funding for parents in 2026-27: how MOScholars scholarship accounts work, who qualifies (IEP or income up to 300% of the free and reduced lunch standard), award limits tied to the state adequacy target, priority order, allowed expenses, the new Odyssey platform, Family Paced Education schools for homeschoolers and the court case over state funding. Last verified October 2026.
Quick answer: Missouri’s main program is MOScholars, the Missouri Empowerment Scholarship Accounts Program, run by the State Treasurer’s Office. Nonprofit Educational Assistance Organizations award scholarship accounts that families can use for Missouri private school tuition, educational therapies and services, textbooks, tests, technology and other approved costs. Students qualify if they have an IEP under federal special education law, or if their household income is at or below 300% of the free and reduced-price lunch standard and they meet one more condition, such as recently attending public school or starting kindergarten or first grade. The program is funded by tax-credit donations plus a state appropriation, so awards depend on available money. The 2026-27 application window ran from October 1, 2025 to April 3, 2026, and Odyssey now runs the program’s platform.
Missouri’s school choice program started small and has grown in steps. Lawmakers created it in 2021 as a donation-funded tax-credit program, opened it to more families in 2024, and began adding direct state money in the 2026 budget year. A teachers’ union challenged that state money in court, and the state won at trial.
This guide covers who qualifies for MOScholars, how awards are calculated and prioritized, how to apply, what the money can buy, how Family Paced Education schools work for families teaching at home, and what the court case means. For a comparison with other states, see our guide to state education funding programs for parents.
Last verified October 2026 against the Missouri State Treasurer’s MOScholars pages, Missouri Revised Statutes sections 135.712 to 135.719, 166.700 to 166.720 and 167.013, the Treasurer’s program rule (15 CSR 50-5), the Cole County Circuit Court judgment in case 25AC-CC05358, and the Treasurer’s June 2026 announcement of its Odyssey partnership. Award amounts change each year, so confirm details with your Educational Assistance Organization and the Treasurer’s office. This article is general information, not legal or financial advice.
MOScholars at a Glance
| Feature | Details |
|---|---|
| Official name | Missouri Empowerment Scholarship Accounts Program (MOScholars) |
| Created by | House Bill 349 and Senate Bill 86 (2021), expanded by Senate Bill 727 (2024) |
| Administered by | Missouri State Treasurer’s Office, with certified Educational Assistance Organizations (EAOs) |
| Platform | Odyssey, starting with the 2026-27 school year |
| Funding | Donations that earn state tax credits, plus direct state appropriations |
| Who qualifies | Students with an IDEA IEP, or students at or below 300% of the free and reduced lunch income standard who meet one more condition |
| 2026-27 application window | October 1, 2025 to April 3, 2026 |
| Expected size | Projected to serve more than 10,000 students in fiscal year 2027 |
MOScholars combines features of a tax-credit scholarship and an education savings account. Our article on ESAs vs vouchers vs tax-credit scholarships explains how those models differ.
How MOScholars Works
Donations, tax credits and EAOs
According to the State Treasurer’s MOScholars page, Missouri taxpayers who contribute to approved nonprofit Educational Assistance Organizations receive state tax credits. EAOs use those contributions to award scholarship accounts to qualified students. Each participating school must partner with a certified EAO, so families usually start by connecting with an EAO that works with the schools or services they want.
What donors get on their Missouri income tax return
The tax credit side is what keeps the program running, and it helps to know how it works if relatives or local businesses ask how to support it. Under [section 135.713](https://revisor.mo.gov/main/OneSection.aspx?section=135.713), a donor can claim a credit equal to 100% of a qualifying contribution, but the credit cannot exceed 50% of the donor’s state tax liability for that year. Unused credit can be carried forward for up to four later tax years, and the credits cannot be sold, transferred or refunded. Donors claim the credit on their Missouri income tax return using a receipt in a format set by the State Treasurer.
Two limits matter for families. A donor cannot pick which student receives the scholarship, and no one can claim the credit for a contribution made on behalf of their own dependent, so parents cannot fund their own child’s account this way. Qualifying contributions are cash gifts, which the statute says include checks, money orders, payroll deductions and electronic funds transfers, but not stocks or property. Total credits are capped each calendar year, starting from $75 million and adjusted annually by the Missouri State Treasurer in line with changes in state school aid.
State appropriations
The program has also received direct state funding. For fiscal year 2026, House Bill 12 appropriated $50 million in general revenue to the program’s fund and about $51 million from that fund for scholarships. The Treasurer’s June 2026 announcement describes MOScholars as funded through a combination of tax-credit contributions and direct appropriations.
The Odyssey platform
In June 2026, the Treasurer’s Office announced a partnership with Odyssey to run the program’s application, payment and marketplace systems ahead of 2026-27. Odyssey already runs programs in several other states, including the Iowa program described in our Iowa education funding guide.
Who Qualifies
Section 166.700 of Missouri law defines a qualified student as a Missouri resident, not unlawfully present in the United States, who meets one of two tests.
Test 1: an IEP
A student qualifies with an individualized education program developed under the federal Individuals with Disabilities Education Act, or an individual service plan developed with a local education agency under IDEA’s rules for children parentally placed in private schools. The IEP or ISP must be dated within 36 months of the application. Plans not developed under IDEA do not count. The statute itself uses the wording “individualized education plan,” so you will see both terms in program documents.
Test 2: income plus one more condition
A student also qualifies if the household’s total annual income is at or below 300% of the income standard used for free and reduced-price school lunches, and the student:
- Attended a public school full time for at least one semester during the previous 12 months, or
- Is eligible to begin kindergarten or first grade, or
- Is a sibling of a qualified student who received a scholarship the previous year and will receive one in the current year.
Income standards for free and reduced lunch are updated each year by the federal government, so check the current table with your EAO. Because the limit is three times those income standards, it reaches well into middle-income households.
The family agreement
Under section 166.705, a parent opens the account by signing a written agreement with an EAO. The student must enroll in a qualified school and receive instruction in at least English language arts, math, social studies and science. Except for students in state custody, the student cannot be enrolled in a public school or charter school in the district of residence, and the district is released from its obligation to educate the student while the student is in the program. A signed agreement satisfies Missouri’s compulsory attendance law.
Award Amounts
Scholarship amounts are tied to the State Adequacy Target (SAT), the per-student amount the Department of Elementary and Secondary Education uses in the school funding formula. Under section 135.714, the maximum award depends on the student’s needs:
| Student category | Maximum award as a share of the SAT |
|---|---|
| Student with an IEP | Up to 175% |
| Student with limited English proficiency | Up to 160% |
| Student eligible for free or reduced-price lunch | Up to 125% |
| Other qualified students | Up to 100% |
The SAT rose from $6,760 to $7,145 for fiscal year 2025, with the increase phased in over two years. Actual awards also depend on how much money EAOs have to distribute, and Odyssey’s program materials describe awards of up to $6,375 or more. Ask your EAO for the exact award your child would receive before committing to tuition.
How money is paid
EAOs deposit scholarship funds into the student’s account either four times a year or as a single lump sum at the start of the year, as the parent requests. Money left at the end of a school year stays in the account, and accounts can be renewed each year. When a student graduates, leaves for a non-qualified school or is disqualified, remaining funds go back to the EAO for other students. Account money is not Missouri taxable income to the parent.
Priority Order
Because demand can exceed available funds, section 135.714 tells EAOs who comes first:
- Students who received a scholarship the previous year.
- Siblings of students who will receive a scholarship in the current year.
- Students with an IDEA IEP or a dyslexia diagnosis.
- Students eligible for free lunch who live in an unaccredited or provisionally accredited district, then students eligible for reduced-price lunch in those districts.
- Other students eligible for free lunch, then other students eligible for reduced-price lunch.
- Active-duty military dependents who have moved to Missouri and are enrolling in a Missouri school for the first time.
In practice, applying early in the window and keeping documents ready matters, especially for families without a returning scholarship.
How to Apply
Timeline
The 2026-27 application window opened October 1, 2025 and closed April 3, 2026. The Treasurer has not published 2027-28 dates as of this update. Families planning ahead can sign up for program updates on the Treasurer’s MOScholars page.
Steps
- Confirm your child qualifies under the IEP test or the income test.
- Choose the school or services you plan to use and confirm they partner with an EAO.
- Gather proof of Missouri residency, household income for the income test, and the IEP or ISP for the disability test.
- Complete the application through the MOScholars portal during the window.
- Once approved, review the scholarship terms and keep records for every purchase.
Our step-by-step guide on how to apply for an education savings account covers the documents most states ask for.
What MOScholars Funds Can Pay For
The Treasurer’s page lists these allowed uses:
- Textbooks required by a qualified school.
- Educational therapies or services from a licensed or accredited practitioner or provider, including licensed or accredited paraprofessionals and educational aides.
- Tuition or fees for a private or virtual school located in Missouri.
- Fees for nationally standardized norm-referenced achievement tests, AP and IB exams, and college admission exams.
- Services from a public school, such as individual classes and extracurricular programs.
- Computer hardware or other devices that meet the student’s educational needs and are approved by an EAO.
- Fees for summer education programs and specialized after-school education programs.
- Transportation costs, including mileage to and from a qualified school.
What funds cannot pay for
- Consumable supplies such as pens, pencils, paper and markers.
- Tuition at a private school outside Missouri.
- Payments or reimbursements to anyone related to the student within the third degree of blood or marriage.
The ban on payments to relatives matters for families who might otherwise hire a grandparent, aunt or older cousin as a tutor.
Spending Rules in the MOScholars Parent Handbook
For detailed guidance on eligibility, allowable expenses and applying, the Treasurer’s office points families to the MOScholars Parent Handbook, posted under the Resources and Documents tab on its MOScholars page. Its 2026-27 edition fills in details the statute leaves open.
Allowable uses in the handbook
Allowable uses listed in the handbook include tuition or fees at a qualified school, required textbooks, educational therapies or services, tutoring services, curriculum, private virtual school fees, testing fees, account management fees, computer hardware or other technology, summer and specialized after-school programs, services provided by a public school, and transportation costs. Under the statute, educational therapies must come from licensed or accredited service providers, so confirm a provider’s status with your EAO before booking.
What the handbook rules out
Beyond consumable supplies and out-of-state tuition, the handbook names several items as ineligible, including late or returned payment fees, household items, field trips, tickets to events, memberships to organizations, sports equipment, furnishings such as a desk or chair, and musical instruments. It notes that its list is not complete, so ask your EAO about anything unusual before spending.
Timing limits
Prepaying for services is allowed only within the awarded school year, which runs July 1 to June 30. The handbook also says a parent may not knowingly hire another MOScholars family’s parent and pay them directly with scholarship funds. Returning families must renew through their EAO each year, complete the annual parent survey and submit norm-referenced test results to keep using rollover funds.
MOScholars for Families Teaching at Home
Missouri does not let ordinary homeschool families use MOScholars just by declaring a homeschool. Instead, the law lists a Family Paced Education (FPE) school among the qualified schools that can accept scholarships.
What an FPE school is
Under section 167.013, effective August 28, 2025, an FPE school is a school whose main purpose is private or religious-based instruction of children aged 7 to the compulsory attendance age. It enrolls no more than four children who are not related to each other, charges no tuition, and keeps records such as a plan book or daily log, a portfolio of work samples, and academic evaluations. It must provide 1,000 hours of instruction, at least 600 of them in reading, language arts, math, social studies and science, with at least 400 of those core hours at the school’s regular location.
Extra steps for FPE families
The Treasurer’s page says FPE families should first contact an EAO to learn whether it partners with FPE schools and what it requires, then complete a prescreening and application. The family must agree not to pay, share, refund or rebate scholarship funds to the parent, the student or any relative within three degrees, and must produce required records on request.
Missouri’s program rule still describes this step as a “home school certification,” including a criminal background check of every adult living in the home school, while the statute now uses the FPE label. Ask your EAO which forms apply this year. Our overview of whether homeschoolers can use state education funds compares Missouri’s approach with states that fund home education more directly, and our guide to homeschool laws by state explains where to find Missouri’s general homeschool requirements.
Testing and Accountability
EAOs must make sure scholarship students take either the state achievement tests or nationally norm-referenced tests in math and English language arts in the grades the statewide system tests, and testing costs can be paid from the scholarship. Parents receive the results each year. EAOs and the Treasurer can review accounts, and the Treasurer can disqualify a parent, student or vendor for intentional misrepresentation after written notice and a chance to respond. Remaining funds in a disqualified student’s account return to the EAO for other students. A disqualified party can reapply after 12 months.
The Court Case Over State Funding
In June 2025, the Missouri National Education Association and two individual plaintiffs sued in Cole County, case 25AC-CC05358, challenging the $50 million general revenue appropriation and the $51 million spending authority in House Bill 12. Several MOScholars parents intervened to defend the program. After a bench trial in November 2025, the court entered judgment in favor of the State in 2026, so the appropriation stood. Any appeal or new challenge could change the picture, so families relying on state-funded awards should watch for updates.
Other Options in Missouri
Missouri families also have public school choices, including charter schools in eligible areas and virtual courses through the state’s MOCAP program, plus independent homeschooling under section 167.031.
Frequently Asked Questions
What is MOScholars?
MOScholars is the Missouri Empowerment Scholarship Accounts Program. Nonprofit Educational Assistance Organizations award scholarship accounts, funded by tax-credit donations and state appropriations, that families use for approved education expenses.
Who qualifies for MOScholars?
Missouri residents with an IDEA IEP or qualifying ISP dated within 36 months, or students from households at or below 300% of the free and reduced lunch income standard who recently attended public school for a semester, are starting kindergarten or first grade, or are siblings of current recipients.
How much is a MOScholars scholarship?
Maximum awards are tied to the state adequacy target, up to 175% for students with IEPs and up to 125% for students eligible for free or reduced-price lunch. Actual amounts depend on available funds, so ask your EAO.
Can homeschoolers use MOScholars?
Only through a Family Paced Education school that meets section 167.013 and partners with an EAO. FPE families must keep records, meet instruction-hour rules and follow extra certification steps.
When is the MOScholars application window?
The 2026-27 window ran October 1, 2025 to April 3, 2026. Dates for 2027-28 had not been published as of this update.
Can I pay a relative to tutor my child with MOScholars funds?
No. Payments to anyone related to the student within the third degree of blood or marriage are not allowed.
Do donors to MOScholars get a tax credit?
Yes. Donors can claim a Missouri tax credit equal to their qualifying contribution, limited to 50% of their state tax liability for the year, with a four-year carryforward. Donors cannot choose the student or give on behalf of their own dependent.
Sources
- Missouri State Treasurer, MOScholars program pages (Parents and Students, Schools, FAQs and Program Rules).
- Missouri Revised Statutes 135.712 to 135.719, 166.700 to 166.720 and 167.013.
- 15 CSR 50-5, MOScholars program rule.
- Missouri State Treasurer’s Office and Odyssey, “Missouri Partners with Odyssey to Modernize MOScholars Program” (June 2026).
- Cole County Circuit Court, Missouri National Education Association v. State of Missouri, case 25AC-CC05358, order and judgment (2026).
- Missouri Department of Elementary and Secondary Education, State Adequacy Target.
- Missouri Revised Statutes 135.713 (tax credit) and 135.715 (qualifying contributions), checked October 2026.
- MOScholars Parent Handbook, 2026-2027 school year (allowable and ineligible expenses, renewal).
- Missouri State Treasurer, news release opening the 2026-27 MOScholars application (application steps, Parent Handbook).
