Ever wish there were more flexible ways to support your child's learning? In many states, Education Savings Accounts (ESAs) make that possible — providing funds that families can use for private school tuition, tutoring, online classes, and other learning choices that fit their child's actual needs. The landscape has expanded significantly in 2024–2025, with several major new programs launching and others expanding eligibility.
How an ESA works
An ESA is a state-funded account that redirects a portion of public education dollars to a family-managed account. Once approved, you can use those funds for approved educational expenses including private or microschool tuition, personalized tutoring, online classes (including Outschool), educational tools, curriculum and supplies, therapy and specialized services, and enrichment activities.
Important: Two very different things called "ESA"
State ESA programs: government-funded accounts redirecting public education dollars to families for K–12 use. Free money from the state.
Coverdell ESA: a privately funded savings account you contribute to yourself (up to $2,000/year), defined by federal tax law. These are completely different things that share only the acronym.
Which states have ESA programs in 2026?
More than 30 states now have some form of ESA or private school choice program, with 18 offering eligibility to virtually all K–12 students. Active programs include those in Alabama, Arizona, Arkansas, Florida, Georgia, Indiana, Iowa, Louisiana, New Hampshire, North Carolina, South Carolina, Tennessee (select counties), Texas, Utah, West Virginia, Wyoming, and others. Award amounts vary widely by state and student need: Texas TEFA provides $2,000 for most students, while students with qualifying special needs may receive up to $30,000. North Carolina's disability program awards $17,000+, and West Virginia's Hope Scholarship is around $4,600.
Major 2025–2026 changes: Texas TEFA launched in 2026 and has enrolled nearly 100,000 students for the 2026–27 school year — one of the largest school choice programs in U.S. history; Florida expanded FES-EO and PEP eligibility to all K–12 students regardless of income; Alabama CHOOSE Act launched in 2024 with universal eligibility; Tennessee's Education Freedom Scholarship (EFS) launched in select counties with over 56,000 applications in its current cycle.
New in 2026: Federal school choice tax credit
A new federal school choice tax credit program launched in early 2026, giving families in participating states an additional way to offset private education costs. States must opt in — Virginia was the first, followed by Indiana, Kentucky, and others, with more than 28 states participating. Unlike state ESA programs, this is a tax credit mechanism rather than a direct funding account. Families in opt-in states should check with their state education agency for specifics on how to access this benefit alongside any existing state ESA program.
Who is eligible and how to apply
Eligibility varies by state. Some offer universal access; others limit eligibility to students with special needs, families below income thresholds, or students in underperforming districts. To apply: visit your state's official ESA program website, submit required documentation (proof of residency, income documentation if applicable, academic records), complete the application, and set up your approved digital wallet.
How to use ESA funds for Outschool
Outschool is an approved provider in most state ESA programs. Visit Outschool's ESA information page for state-by-state instructions.
ESA vs. 529 vs. Coverdell: Key differences
State ESAs are for K–12 flexibility now — funded by the state, not your contributions. 529 plans are for long-term college savings — privately funded, tax-advantaged. Coverdell ESAs are privately funded with broad K–12 and college use but a $2,000/year contribution cap. Many families use a combination. See our full comparison of ESAs vs. 529 plans.
Related reading: Common ESA myths debunked
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Browse classesTypes of education savings options in the U.S.
If you're researching ways to fund your child's education, you've likely come across several savings programs — especially if your state doesn't currently offer an ESA. It can be a lot to sort through, but the good news?
There are several ways to support your child's learning with flexible funding options. Here's a quick breakdown of the most common programs so you can see what might be available to you and what best fits your family's learning goals.
State-Funded ESAs
These programs use state education dollars — basically a portion of what would have gone to your local public school — to fund your child's personalized learning. They're run by state education agencies and are currently available in: Alabama, Arizona, Arkansas, Florida, Georgia, Indiana, Iowa, Louisiana, Mississippi, Montana, New Hampshire, North Carolina, South Carolina, Tennessee*, Utah, West Virginia, and Wyoming.
*Tennessee's Education Freedom Scholarship (EFS) is currently limited to families in select counties. Check the Tennessee Department of Education to confirm eligibility in your county before applying.
Tax-Credit ESAs
In this model, private donors contribute to education funds, and in return, they get state tax credits. The money goes to scholarship organizations that help families cover learning costs. These programs are currently offered in: Florida and Missouri.
Education Tax Scholarships
These are also funded by private donations (with tax benefits for donors), but they're managed by nonprofit organizations that provide scholarships to families. You'll find these programs in a wide range of states, including: Alabama, Arizona, Arkansas, Georgia, Indiana, Iowa, Kansas, and others.
If your state is Florida, North Carolina, South Carolina, Utah, Texas, New Hampshire, or Indiana — you can use your ESA or Microgrant funds to enroll in Outschool classes.
Families in these states can pay for classes on Outschool just like they would with personal funds, using approved payment systems such as ClassWallet or direct reimbursement where applicable. Be sure to follow your state's guidelines to ensure your purchase qualifies.
To learn more and see if your state is supported, visit Outschool's ESA information page.
Building your child's educational future
You can use an ESA to build a complete learning plan from the ground up — or simply add enrichment opportunities that make learning more engaging. ESAs give families the flexibility to choose what works best for their child's goals, pace, and interests. Used thoughtfully, they can help you create a learning journey that truly fits your child.
If you plan to utilize your ESA funds for online tutoring or classes, Outschool supports families in select states where these programs are approved for use. If your state participates, you can use your ESA funds to enroll in Outschool's flexible learning experiences across core academics, enrichment classes, and more.
Explore ESA-eligible classes to see how Outschool can support your child's learning journey. Get started at outschool.com/esa.
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