After strong first year, new CHOOSE Act applications open Jan. 2

BIRMINGHAM, Ala. – Applications for Alabama’s CHOOSE Act education savings account program will open Jan. 2 for new families who want to participate in the 2026–27 school year, state officials announced. Families already using CHOOSE Act funds this year may renew their applications now, with all applications and renewals closing March 31.

The CHOOSE Act, short for Creating Hope and Opportunity for Our Students’ Education Act, was enacted in 2024, creating Alabama’s first statewide education savings account program. It allows eligible families to use public funds for approved education expenses outside the traditional public school system.

The current school year is the program’s first, and state leaders say early participation has been strong.

To qualify for the upcoming school year, a student must be an Alabama resident, a dependent of an active-duty military member or zoned to attend a “priority” public school – one of 124 schools that earned a D or F on the most recent state report card.

To be eligible, household adjusted gross income can not exceed 300% of the federal poverty level, or about $96,500 for a family of four.

Under the law, eligible families may receive up to $7,000 per child to attend a participating school or $2,000 per child for homeschooled students, capped at $4,000 per family.

Funds can be used for a range of education-related expenses, including tuition, textbooks, curriculum materials, school fees and certain educational services such as occupational or speech therapy.

Although state law classifies CHOOSE Act funding as a refundable income tax credit, the program operates as a state-funded education savings account, providing a fixed dollar amount per eligible child regardless of a family’s income tax liability.

Gov. Kay Ivey has repeatedly highlighted families participating in the program during its inaugural year, including families whose children attend private schools in Montgomery, Dothan and Birmingham.

Most recently, Ivey spotlighted the Moseley family of Wilcox County. Laura Moseley’s two children – Cayden, a 10th-grader, and Kynslie, a seventh-grader – attend Wilcox Academy.

Ivey said the family reflects the type of household the program was designed to serve.

“Families like the Moseleys, rooted in their communities and committed to giving their children the best chance to succeed, deserve options,” Ivey said in a statement. “I am proud to see the CHOOSE Act opening doors for families across Alabama, and particularly in my hometown of Camden.”

Laura Moseley said the program has expanded her family’s education options and encouraged other eligible families to apply.

The Alabama Department of Revenue, which administers the program, reported that nearly 37,000 students applied for education savings accounts during the program’s first year, with more than 23,000 approved.

As of Dec. 22, about 19,700 ESAs had been activated, according to ALDOR, totaling approximately $100 million in awards for eligible education expenses.

Families will receive award notifications on April 15.