BIRMINGHAM, Ala. — Of the more than 5,000 public school students who applied to use Alabama’s new school choice program this year, just under half are enrolled in their school of choice.
More than 1,300 students hoped to attend a different public school using the education savings accounts created in 2024 — but none have been able to do so, according to data from the Alabama Department of Revenue.
Another 3,100 public school students applied to use ESAs at private schools, and fewer than half of them have activated their accounts.
By contrast, of the more than 10,000 private school students who were approved to use ESAs this year, nearly all – 96% – have done so.
Overall, combining all types of students – public, private, homeschool and first-time kindergarteners – 18,483 of 21,953 ESAs have been activated, according to the Alabama Department of Revenue.
Gov. Kay Ivey’s office said the numbers show progress.
“While we cannot speak to each individual family’s situation, the CHOOSE Act continues benefiting thousands of Alabama families across the state,” Ivey spokeswoman Gina Maiola said in a statement. “The governor is very pleased with how the program is going in only year one and looks forward to growing the CHOOSE Act in the years to come.”
At current numbers, CHOOSE Act ESAs could cost about $99.8 million this first year – close to the $100 million lawmakers initially projected when the law passed in 2024.
It does not appear the program will need the additional $80 million lawmakers authorized during the 2025 session.
The CHOOSE Act is Alabama’s first ESA program. It allows eligible families to use state dollars for tuition and other educational costs. One of its distinctive features is that it gives public schools that charge out-of-district tuition the ability to accept ESA students.
A little over a month into the new school year, a more detailed look at who is using the program shows both the scope and the limits of the CHOOSE Act. Nearly all private and homeschool students who met eligibility guidelines are using their education savings accounts – but fewer than half of last year’s eligible public school students are.
As of Sept. 1, only 2,428 of the 5,060 eligible students who were in public school last year – fewer than half – had activated their CHOOSE Act ESA, according to ALDOR. A student can be deemed eligible, but activation only happens when proof of enrollment is uploaded into ALDOR’s system.
The chart below shows the proportion of students in each group – showing where they attended school last year – who have successfully activated their ESAs compared to those who have not. Click here if you’re unable to see the chart.
Why no public-to-public ESAs?
Considering the narrow conditions that allow public schools to take ESA students, the lack of participation or acceptance is expected. The law requires two things: the student must live outside the district and the public district must charge tuition.
About 32,850 public school students attended a school outside of their zoned district last year, including up to 13,000 full-time virtual students, according to data from the Alabama Department of Education. But most don’t charge tuition, according to School Superintendents of Alabama Executive Director Ryan Hollingsworth.
“There was a lot of uncertainty,” he said of the lack of participation by public schools. “I think a lot of our member districts are waiting to see how this unfolds and plays out.”
Two districts, Mobile County and Dothan City, are listed as participating, but on Monday, Mobile County Schools Communications Director Rena Phillips said the district has learned that because it doesn’t charge tuition, it doesn’t meet eligibility requirements.
Dothan City Schools did not respond to questions about whether any out-of-district students had applied.
Two other public schools, University Charter School in Sumter County and the Alabama School of Mathematics and Science in Mobile, are also included on ALDOR’s participating list, but both are prohibited by law from charging tuition, which prevents them from enrolling ESA students.
Frank Miles, spokesperson for the Alabama Department of Revenue, said the lack of public school participation likely contributes to the number of unactivated ESAs.
“We encourage traditional public schools to support their students and communities by participating in CHOOSE Act Alabama,” Miles said. .
Hollingsworth added that some families may not have understood when and how they could use ESAs. Superintendents heard from parents who thought they could use the funds to attend a different school in the same district, which is not allowed under the law.
“There was a misconception among the general public when the legislation was passed last year that they could just take their students and go wherever they want to, and that is absolutely not the case,” Hollingsworth said.
Public students heading to private schools face barriers, too
Even when families turn to private schools, activation rates vary. Nearly all students who were already in private schools have been able to use their ESAs, while just over half of the public school students who tried to transfer into private schools have done the same. Homeschoolers and first-time kindergarteners fall in between.
The chart below shows the number and proportion of students in each school setting in 2024-25 who planned to use their ESA to attend private school, along with how many have actually done so. Click here if you’re unable to see the chart.
Again, the reasons why last year’s public school students aren’t activating their ESAs at a private school likely vary. Hollingsworth noted that in addition to capacity concerns, private schools can turn students away.
“They have selective enrollment,” he said. “They have a process in place to review those applications, and they can choose not to accept them if they want.”
ALDOR officials point out that families still have plenty of time to upload proof of enrollment and access ESA funds.
Arleen Alexander, ALDOR’s manager of government relations, said the department continues to send reminders.
“An eligible student can activate their CHOOSE Act ESA once the required enrollment verification is submitted, and has until June 30, 2026 (the end of the current academic year) to do so,” she said in a written statement.
By the numbers
The overall figures have shifted since the program launched this spring. Back in April, nearly 37,000 students applied for an ESA. By early June, 23,600 were deemed eligible. A few weeks later, that figure slipped slightly to 23,400.
The number of eligible students currently stands at just under 22,000. Families could begin activating their ESAs on July 1, once they provided proof of enrollment.
As of Sept. 1, 18,483 students, or 84% of the 21,953 ESAs that are eligible, had activated them, leaving about 3,470 unused.
The chart below shows which students have activated their ESAs, the school settings they’ve chosen and how many awards remain unused. Click here if you’re unable to see the chart.