Alabama Expands CHOOSE Act: Vouchers for All K-12 Students

MONTGOMERY, Ala. (Day.News) — The Alabama House of Representatives approved a measure Thursday to supercharge the state's CHOOSE Act, the Creating Hope and Opportunity for Our Students’ Education Act signed by Gov. Kay Ivey on March 7, 2024. The expansion increases funding for education savings accounts (ESAs) — refundable income tax credits worth up to $7,000 per student at participating schools or $2,000 per homeschooled student (capped at $4,000 per family) — and broadens eligibility to prioritize low-income families in cities like Birmingham and Mobile.

For the 2026-2027 academic year, new families can apply as of January 2, 2026, if their household income stays below 300% of the federal poverty level based on 2025 tax returns; K-5 through 12th graders residing in Alabama qualify. Priority goes to the first 500 students with special needs, dependents of active-duty military at priority schools under Section 16-6D-4, and siblings of current participants, with remaining spots allocated by income. By 2027-2028, income restrictions vanish entirely, making ESAs available to all Alabama K-12 students for tuition, fees, tutoring and other expenses at approved providers.

The original CHOOSE Act mandated at least $100 million in annual legislative appropriations with no cap, drawing opposition from groups like the Alabama Association of School Boards, which packed Senate hearings in February 2024 to decry potential diversions from public schools. Administered by the Alabama Department of Revenue via chooseact.alabama.gov and platforms like ClassWallet, the program arrives amid federal boosts: the Educational Choice for Children Act, effective January 1, 2027, adds scholarships up to 300% of area median income through donor tax credits stacking with state funds.

In rural counties like those in the Black Belt and urban districts in Jefferson County, families now eye private, faith-based or homeschool options amid debates over public school funding. Applications for 2025-2026 closed earlier this year, but the portal reopens soon, promising broader access across the Heart of Dixie.