MONTGOMERY, Ala. — The Alabama Senate Wednesday gave final approval to an education savings account bill that the governor says is her top legislative priority.
The legislation provides up to $7,000 in tax credits for families to use on private school education or other education options. Home school families can received up to $2,000 in credits per child, capped at $4,000 per family.
The Creating Hope and Opportunity for Our Students’ Education, or CHOOSE Act has been a GOP priority and promise to choice advocates.
“CHOOSE empowers parents with the freedom to select the best school for their child,” said Sen. Arthur Orr, R-Decatur, who sponsored the bill in the Senate. “By granting parents the power to choose, we provide every child with the opportunity for a quality education, regardless of their income or ZIP code.”
Rep. Danny Garrett sponsored the bill in the House and it was passed there last month. Crafted by Gov. Kay Ivey’s office, she’s expected to sign the bill soon.
A new state fund will be created from which the tax credits will be distributed. Lawmakers will put at least $100 million per year into the fund. In the House, the bill was amended, at the request of education groups, to cap that fund at a maxi
The bill underwent a number of changes in the House of Representatives, including adding financial guardrails; giving priority to children of active-duty service members in priority schools, or schools with “D” or “F” grades on the state’s school report card; and expanding the number of accrediting agencies.
In the first two years, the program will be limited to families making less than 300% of the federal poverty line, or around $75,000 for a family of three. The first 500 spots for special education students are not subject to income-level. Orr said after the 500 spots, children of active-duty service members would get preference. Additional students would be brought in based on economic status.
Starting Sept. 30 2026, the Legislature must appropriate at least $100 million for the program each year.
Opposed lawmakers expressed concern about using public dollars for private schools.
“This is a situation where we are looking to provide money for people to take their kids anywhere they want to take them — as if we’ve taken care of all our other problems,” said Sen. Rodger Smitherman, a Democrat from Birmingham.
Gov. Kay Ivey’s office has a bill signing ceremony planned for Thursday in the State Capitol.