Alabama Launches Fully Funded CHOOSE Act ESAs for 2025–26 School Year
23,000 students approved earlier this year can now begin to spend funds on qualifying activities
Governor Kay Ivey announced on July 1 that Alabama’s CHOOSE Act education savings accounts (ESAs) are officially funded and ready for the 2025–2026 school year. Now, around 23,000 students approved earlier this spring can log in to ClassWallet and spend their funds on school tuition, tutoring, therapy sessions, and other qualifying activities.
The account gives families a flexible budget:
- $7,000 per student in a participating private or public school
- $2,000 per homeschooled student (up to $4,000 per family)
Since the program went live in January, 36,873 students applied statewide. From those, over 23,000 families were approved, unlocking more than $124 million in ESAs.
“Our CHOOSE Act education saving accounts are officially ready to support thousands of Alabama families and students with their unique educational needs,” Governor Ivey said. “In just the first year, our state’s ESA program is incredibly popular, providing opportunity, flexibility and choice when it comes to our children’s education. I am excited to see the program in action this year.”
The Alabama Department of Revenue is managing the program. Families should have gotten a welcome email from ClassWallet on or about July 1. It walks them through how to use their funds and points them to helpful webinars.
Supporters believe the CHOOSE Act gives families real control and opens new chances, especially for students with special needs or military families. Critics worry that moving funds away from public schools could make existing gaps even wider. They are also concerned that most of the kids in the program are in non-public schools.
To learn more, families can visit the official site at chooseact.alabama.gov. It includes a Parent Guide, FAQ, and a list of approved education service providers. Applications for the 2026–2027 school year will open in January 2026.
