Alabamians May Be Eligible For Stipends for Private Schools

The new website – chooseact.alabama.gov – provides Alabama families and private schools with the latest information about The CHOOSE Act Program, including eligibility information, an online application, program facts, important deadlines, as well as parent and ESP guides.

Alabama announced that The CHOOSE Act or Creating Hope and Opportunity for Our Students’ Education Act of 2024 is now has a website where education service providers such as private schools, and eventually, Alabama families can prepare for the state’s new education savings account (ESA) program.

Interested ESPs can begin applying online now through the website, launched by the Alabama Department of Revenue. However, the family application process for the 2025-2026 school year will open on January 2, 2025, and close on April 7, 2025, with award notifications scheduled to be sent out on May 1, 2025.

“Every Alabama student should have the opportunity to receive a high-quality education that meets their individual needs,” said Gov. Kay Ivey. “The CHOOSE Act is School Choice for a Strong Alabama – a wonderful opportunity for eligible families to receive assistance that will have a positive impact on their students’ academic future and the future of our great state.”

The CHOOSE Act makes refundable income tax credits, called ESAs, available to support the success of eligible K-12 students across Alabama. An ESA can be used to pay for school tuition, tutoring, educational therapies and other qualified education expenses at approved ESPs across the state.

Funding for eligible students includes:

$7,000 per participating student enrolled in a participating school
$2,000 per participating student who is participating in a home education program (this includes an individual or group program, homeschool, co-ops, etc., and is capped at $4,000 per family)

For the 2025-2026 school year, the program is open to families with an adjusted gross income not exceeding 300 percent of the federal poverty level for the preceding tax year.

This means a family of two can earn up to $61,320 and still be eligible for the program, and a family of four can earn up to $93,600 and still be eligible for the program.

The current Federal Poverty Level for U.S. Families is as follows:

Household Size of 1: $15,060
Household Size of 2: $20,440
Household Size of 3: $25,820
Household Size of 4: $31,200
Household Size of 5: $36,580
Household Size of 6: $41,960
Household Size of 7: $47,340
Household Size of 8: $52,720

Families can make no more than three times these numbers to qualify.

The program will prioritize students with special needs, with a secondary focus on students who are dependents of an active-duty service members enrolled in or assigned to a priority school.

Remaining ESAs will be available to students based on the family’s AGI as a percentage of the federal poverty level.