MONTGOMERY, Ala. – Education savings accounts created through Alabama’s CHOOSE Act are now fully funded for next school year, Gov. Kay Ivey announced on Wednesday.
Families whose applications were approved earlier this year can now access their funding through ClassWallet. The website sent out welcome emails about using the funds on or around July 1.
Around 49,000 students, a record high, submitted applications for the 2026-2027 school year, according to the release. ALDOR approved more than 34,000 of those applications.
“The CHOOSE Act has changed the lives of thousands of Alabama families by enabling them to select schools that best align with their priorities and their child’s specific needs,” Ivey said in a release. “The increase in applications for the upcoming school year shows that the people of Alabama want school choice, and I am proud that we are able to give it to them.”
Alabama Daily News previously reported that fewer students sought CHOOSE Act ESAs for the first time this year, even though the total number of applications grew.
The Alabama Department of Revenue received 29,986 new applications for the 2026-27 school year, down from 36,873 last year, when every applicant was new to the program, according to information from the department.
For the 2026-27 school year, lawmakers increased CHOOSE Act funding to $250 million, but by funding 34,000 students, ALDOR only used $174 million of this earmark.
ADN estimated that funding every applicant could have cost between $208 million and $275 million, depending on whether students use ESAs for private school, public school or homeschool expenses.
Approved students enrolled in a participating school will receive $7,000. Students participating in homeschool or other home education programs will receive $2,000, with a maximum of $4,000 per family.
The Legislature enacted the CHOOSE Act, short for Creating Hope and Opportunity for Our Students’ Education Act, in 2024, creating Alabama’s first statewide education savings account program. It allows eligible families to use public funds for approved education expenses, including tuition, textbooks, curriculum materials, school fees and certain educational services such as occupational or speech therapy.
While the law describes the ESA as a “refundable tax credit,” the program operates differently from a traditional tax credit. The ESAs are funded through the state’s Education Trust Fund, managed through ClassWallet and paid directly to schools or other approved providers. Families never handle the money themselves.
To be eligible for an education savings account, a family’s income cannot exceed 300% of the federal poverty level, about $80,000 for a family of three.
The release announcing this year’s award notifications confirmed that the income requirement will be removed next year.
“The application process for the 2027-2028 academic year will begin in January 2027 and will be available to all Alabama families, regardless of household income,” the release said.
For more information, visit www.chooseact.alabama.gov.