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🎓 Alabama School Choice, ESAs & Scholarships

Which Alabama education savings accounts, scholarships and tax credits a homeschool family can use, what they pay for, and where Alabama stands on school choice — from our Alabama guide.

Overseen by	Alabama Department of Revenue (ALDOR), under the CHOOSE Act (Act 2024-21, Ala. Code 16-6J-1 and following) and ALDOR Rule chapter 810-28-1
Administered by	ClassWallet, under contract with ALDOR. Families apply, accept an affidavit and spend through a ClassWallet digital wallet (Pay Vendor for providers, the ClassWallet Marketplace for goods). Money goes only to approved providers, never to parents, and there is no reimbursement.
Amount per student, 2026–27	,000 per student in a home education program, capped at $4,000 per family, or the actual cost of qualifying expenses if less. Students at a participating school get $7,000. Funds were deposited starting July 1, 2026, and anything unspent on June 30, 2027 returns to the CHOOSE Act Fund.
Who is eligible	Alabama residents in grades K5–12 (ages 5 to 19, or up to 21 with an IEP or 504 plan) who are lawfully present. For 2026–27, household income had to be at or below 300% of the federal poverty level; from 2027–28 there is no income limit. Students using an Alabama Accountability Act scholarship or tax credit, and children enrolled in a private school that isn't a CHOOSE participating school, are not eligible.
Application window / next dates	The 2026–27 portals closed March 31, 2026. The governor's office says the 2027–28 process begins in January 2027, open to all Alabama families regardless of income; exact dates had not been posted as of October 27, 2026. Last cycle, renewals opened December 15, new families January 2, both closed March 31, and award notices began April 15.
Homeschool status	Yes. The ,000 award is for students in a home education program, which ALDOR says includes an individual or group program, homeschool or co-op. Its rules say a homeschool student qualifies even if enrolled in a church school, homeschool co-op or similar entity. Neither the law nor ALDOR's rules require a home-education student to take a test or report to the state.

How the CHOOSE Act works for homeschool families

The CHOOSE Act has two award levels. A student enrolled in a participating school (an accredited private school, including church, parochial and religious schools, or an accredited public school that charges tuition) gets $7,000 for 2026–27. A student who isn't enrolled in a participating school gets

What the money can pay for

The law lists the qualifying expense categories (Ala. Code 16-6J-2(10)), and ALDOR's 2026–27 Approved Expenses List spells out what is allowed. Everything must be bought from an ALDOR-approved Education Service Provider and only covers the school year the award is for. These are the categories that matter to a home-education student:

Textbooks, including audiobooks, for K5–12 in art, English language arts (phonics, grammar, reading and writing), foreign languages, math, music, religion, science (including computer science and engineering) and social studies (including history, civics and character education)

Curriculum and supplemental reading materials for individual student use: workbooks, flashcards, reference books, and dual enrollment classes in approved subjects at participating in-state colleges and universities

Instructional materials (school supplies) such as paper, notebooks, calculators, math manipulatives, science and lab kits, art supplies, and microscopes and telescopes (up to 50 each), with no bulk orders

Private tutoring, in person or online, in the approved subjects, including voice and instrument lessons; tutor supply fees count, transportation does not

Tuition and fees for an approved nonpublic K5–12 online learning program, and educational software and apps, including educational subscriptions within the school year and assistive software

Educational therapies for students with disabilities from a licensed or accredited practitioner: ABA, dyslexia and dysgraphia therapy, occupational, physical, speech and vision therapy, plus initial evaluation fees

Fees for standardized and nationally recognized tests, including college admission tests and AP exams, and test prep courses (AP, SAT, ACT and similar)

Computers (one laptop, desktop or tablet under

,200 per student every two academic years, no gaming computers) and technological aids such as printers, monitors, keyboards and headsets (up to $500 a year per student, with per-item limits; no 3D printers, TVs or SMARTboards)

Contracted services from a public school district, including specific classroom instruction

Before you buy

Spend only through ClassWallet. Pay providers with Pay Vendor (an invoice is required) or buy goods in the ClassWallet Marketplace. There is no reimbursement for anything you buy yourself.

Use it by June 30. Money left in the account at the end of the school year (June 30, 2027 for 2026–27) goes back to the CHOOSE Act Fund. It also goes back if your child leaves the program. Only invoices for services provided during the school year are approved.

Check the invoice. It must show the provider's name and address, the student's and parent's names, the invoice date, the dates and type of service, and the total due. Handwritten invoices are rejected, and an invoice with any ineligible item is rejected in full. Rejected money returns to the account right away.

Not covered: co-op or school fees outside the approved list, athletic and extracurricular fees, field trips, uniforms, transportation, child care, food, toys, LEGOs and puzzles, and gaming equipment.

Parents can't pay themselves. A parent can't be paid as a provider for their own child, and providers can't refund, rebate or share program money with families (16-6J-5(a)(2); Rule 810-28-1-.05). Any cost above the account balance is yours.

Accept the affidavit. The balance shows $0 until you accept the CHOOSE Act affidavit in ClassWallet for each student. If you click Reject by mistake, call ClassWallet to reset it.

Amounts, dates and rules change. Confirm anything important at chooseact.alabama.gov or with ClassWallet (877-313-2125, help@classwallet.com).

Other Alabama programs: scholarships, tax credits, dual enrollment and college aid

Alabama Accountability Act (2013): scholarship granting organizations give scholarships, funded by donors who get a state tax credit, for tuition and mandatory fees at a qualifying school (a nonpublic school, or a public school outside the student's district that isn't a priority school), up to

0,000 per student per year (Ala. Code 16-6D-4). A separate refundable parent credit helps families who move a child from a priority public school to a private school. Neither pays homeschool costs, and a student receiving either one can't have a CHOOSE ESA in the same year (16-6J-2(5)).

Federal Scholarship Tax Credit: Governor Ivey opted Alabama in through Executive Order 742 on January 16, 2026, and Alabama appears on the IRS list of participating states for 2027 (as of October 22, 2026). ALDOR will certify Alabama scholarship granting organizations; no certified list had been posted as of October 27, 2026. ALDOR says scholarships will be for households earning up to 300% of area median income, and will fund K–12 expenses "incurred at or provided by public, private, or religious schools." Treasury and the IRS issued proposed regulations on October 1, 2026, and ALDOR says more guidance on eligible expenses is expected. Whether these scholarships can pay homeschool costs is not settled.

Read the full section in our Alabama guide

Articles for Alabama families

Alabama's CHOOSE Act in Plain English: What the ESA Is, Who Runs It and What It Pays Homeschoolers
The CHOOSE Act is Alabama's education savings account. For 2026–27 it pays