What is the Alabama CHOOSE Act Program?

Alabama families approved for the CHOOSE Act: your funds are available starting July 1, 2026. If your student was awarded an Education Savings Account, your ClassWallet account will be funded this week. Here's a full breakdown of how the program works, who qualifies, and how to start using your funds — including at Outschool, now a confirmed approved Education Service Provider.

What is an Education Savings Account (ESA)?

An Education Savings Account (ESA) is a state-funded program that puts a portion of public education dollars directly in a family's hands. Instead of routing state funding to a specific public school, an ESA allows eligible families to use those funds for approved educational expenses — private school tuition, homeschool curriculum, tutoring, online learning programs, and more.

ESA programs are growing across the country. As of 2026, families in more than 20 states can access some form of an ESA. The rules, funding amounts, and approved expense lists vary by state. For Alabama families, the CHOOSE Act is the program to know.

What school choice programs are available in Alabama?

Alabama families have access to three main programs supporting school choice. Each works differently and targets a different set of circumstances.

• CHOOSE Act ESA Program: Alabama's official ESA gives approved families direct access to public education funds via a ClassWallet digital wallet for approved educational expenses.
• Parent-Taxpayer Refundable Tax Credit: A refundable tax credit for families moving students from "failing" public schools to approved private schools.
• Alabama Education Scholarship Program: A donor-supported scholarship that provides private school tuition assistance through registered Scholarship Granting Organizations (SGOs).

How does the Alabama CHOOSE Act work?

The CHOOSE Act — Creating Hope and Opportunity for Our Students' Education — was signed into law in 2024 as Alabama's official ESA initiative. It allows eligible families to access state education funds through a secure ClassWallet digital wallet, which families use to pay approved Education Service Providers directly.

Families apply between January and April each year. If approved, funds are deposited into their ClassWallet account on July 1 of the school year. All purchases must go through the ClassWallet platform — direct reimbursements are not accepted.

Funding amounts

• Private school students: Up to $7,000 per student
• Homeschool families: Up to $2,000 per student, with a family cap of $4,000

Eligibility and priority groups

The CHOOSE Act uses a priority system for awarding accounts:

• Students with special needs (first 500 accounts)
• Siblings of current participants
• Students assigned to D- or F-rated public schools
• Dependents of active-duty service members

Income eligibility extends to families earning up to 300% of the federal poverty level, which covers approximately 75% of Alabama families.

What can CHOOSE Act funds pay for?

Approved uses through ClassWallet include:

• Tuition and fees at approved private schools
• Homeschool curriculum, materials, and instructional supplies
• Tutoring services from approved providers
• Educational software, apps, and online learning programs
• After-school and summer learning programs
• Standardized test fees and college entrance exam prep
• Therapy and support services for students with disabilities
• Contracted services through public school districts

Unused funds at the end of the school year are returned to the state and do not roll over.

Using your CHOOSE Act funds at Outschool

Outschool is a confirmed approved Education Service Provider under Alabama's CHOOSE Act program. Alabama families with a funded ClassWallet account can use their ESA dollars to book Outschool's live classes, one-on-one tutoring, and self-paced courses directly through ClassWallet.

ESA funds can be applied toward:

• Live, small-group classes led by qualified educators in any academic subject
• One-on-one tutoring for reading, math, writing, science, and more
• Self-paced enrichment courses for learners who need flexibility
• Core academic curriculum support for homeschooling families

Log into your ClassWallet account and search for Outschool to get started. Funds are available beginning July 1, 2026.

Parent-Taxpayer Refundable Tax Credit

If your child is zoned for a public school classified as "failing" and you're considering a private school transfer, Alabama's Parent-Taxpayer Refundable Tax Credit can help offset tuition costs. Created under the Alabama Accountability Act of 2013, this credit allows eligible families to claim a refundable credit on their state income tax return to cover some or all of the cost of approved private school tuition and mandatory fees.

Unlike an ESA, this program does not provide upfront funding. You pay tuition first, then claim the credit at tax time. The amount is limited to the lower of your actual costs or the state's annual cap.

Eligibility

• Student must be an Alabama resident in K-12
• Student must be assigned to a public school classified as "failing" by the Alabama Department of Education
• Family must transfer the student to an approved nonpublic or non-failing public school

Students cannot receive both this credit and a CHOOSE Act ESA or an AAA scholarship for the same year.

Alabama Education Scholarship Program

The Alabama Education Scholarship Program, established under the Alabama Accountability Act, is funded by private donors who contribute to registered Scholarship Granting Organizations (SGOs). Those SGOs award private school tuition scholarships directly to eligible K-12 students — meaning families do not pay upfront.

Eligibility

• Initial eligibility: household income at or below 250% of the federal poverty level (approximately $78,000 for a family of four)
• Renewal eligibility: income may rise to up to 350% of the poverty level (approximately $109,200 for a family of four)
• Students in grades 2–12 must have attended an Alabama public school the prior year, with limited exceptions
• Priority: students at D/F-rated schools, students with IEPs or 504 plans, and previous scholarship recipients

Frequently asked questions

What's the difference between the CHOOSE Act and the AAA scholarship programs?

The CHOOSE Act ESA deposits public education funds into your ClassWallet account to use during the school year. AAA programs offer either a refundable tax credit for parents or a private school scholarship funded by donor tax credits through an SGO. Each student can only participate in one program at a time.

Can homeschoolers receive CHOOSE Act funds?

Yes. Homeschooling families can receive up to $2,000 per child, with a family maximum of $4,000. Funds can cover curriculum, learning tools, tutoring, and online educational services through approved ClassWallet providers.

When are CHOOSE Act funds available?

Funds are deposited into your ClassWallet account on July 1 of each school year. Families must first accept the program affidavit through the ClassWallet platform to access them.

Is Outschool an approved provider?

Yes. Outschool is a confirmed approved Education Service Provider under Alabama's CHOOSE Act. Search for Outschool in your ClassWallet account to book classes, tutoring, and self-paced courses using your ESA funds.

What if I miss the application deadline?

Applications are accepted between January and April each year. If you miss the window, you'll need to wait for the next cycle — late applications are not accepted.

Do unused CHOOSE Act funds roll over?

No. Any unused funds at the end of the academic year are returned to the state and do not carry over to the following year.

Can I use the CHOOSE Act and an AAA scholarship at the same time?

No. A student cannot receive both a CHOOSE Act ESA and an AAA scholarship in the same school year. Siblings within the same family may each be enrolled in different programs.

Build an education plan that fits your family

Alabama's school choice programs give families more ways than ever to shape a learning experience that fits their child. Whether you're managing CHOOSE Act funds through ClassWallet, claiming a tax credit at year-end, or accessing a scholarship through an SGO, each option opens a different door.

Outschool is here to support Alabama families as these programs expand. With live classes, one-on-one tutoring, and self-paced options in every subject, there's a format and a teacher to fit your child's goals. Visit our ESA back-to-school planning guide for more ways to make the most of your funds this fall.