Last Updated: April 2026
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?
Active programs are available in Arizona, Florida, Texas, North Carolina, Georgia, Indiana, Iowa, Utah, West Virginia, Arkansas, Alabama, South Carolina, New Hampshire, Tennessee, Mississippi, Montana, Louisiana, Wyoming, and others. Award amounts range from ~$4,600 (West Virginia) to $17,000+ (North Carolina's disability program).
Major 2024–2025 changes: Texas TEFA launched in 2025 (~$10,000/year, one of the largest new ESA programs); Florida expanded FES-EO and PEP eligibility to all K–12 students regardless of income; Alabama CHOOSE Act launched in 2024 with universal eligibility.
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 multiple state ESA programs. Families in Arizona, North Carolina, South Carolina, Utah, Texas, New Hampshire, Indiana, and Florida can currently use ESA funds for Outschool classes. 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: Florida ESA guide | Florida Step Up for Students: 2026 guide
Types 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.
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, Louisiana, Montana, Nevada, New Hampshire, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Utah, and Virginia.
ESA Microgrant Programs
These are smaller-scale programs, often funded through a mix of state, federal, or private money. They’re typically used for short-term learning needs or targeted support. Microgrants are currently available in:
Texas, Ohio, Idaho, Indiana, North Carolina, Oklahoma, Florida, New Hampshire, and South Carolina.
529 College Savings Plans
These are long-term savings accounts you can open to help pay for college—and in many states, you can also use them for some K–12 private school costs. Every state has its own version of a 529 plan, and they’re funded by personal contributions.
Coverdell Education Savings Accounts (Coverdell ESAs)
These accounts let you save for both K–12 and college expenses and are offered by various financial institutions. They’re available across the U.S., though not all financial institutions offer them. Like 529 plans, they’re funded by personal savings and can be used for a variety of educational costs.
Common Questions about Education Savings Accounts (ESAs)
As you explore flexible learning options, you’re bound to run into questions—lots of them! Let's walk through some common questions you may have about Educational Savings Accounts (ESAs).
What learning experiences can I fund with my ESA?
It depends on your state’s program, but most ESAs allow families to use funds for:
- Private school tuition
- Online classes
- One-on-one tutoring
- Curriculum and educational supplies
- Special education services and therapies
- Enrichment activities like art, coding, or music
Always check your state’s approved spending list to make sure your selections qualify.
How do other families make the most of their ESA funds?
Families often build a custom mix of learning options to match their child’s needs and interests. Many use ESA funds for essential expenses like private school tuition or homeschool curriculum. Others choose to support structured routines through tutoring or online classes. ESA funds can also be applied to more flexible, interest-led learning like project-based activities, arts programs, or STEM enrichment—helping families round out their child’s education with both core academics and creative growth.
What happens if I don't use all my ESA funds this year?
Most states let you keep unused funds for next year's learning adventures. While specific policies vary, this flexibility helps you plan confidently for long-term educational goals without rushing to spend funds before year-end. Check your state's ESA handbook for local guidelines about rolling over funds.
Will ESA spending affect our family's taxes?
When you use ESA funds for approved learning experiences, these distributions are tax-free. This means you can focus on choosing the right educational opportunities for your child without tax worries!
How can I start using my ESA with Outschool?
Outschool currently accepts ESA and Microgrant funds from a select number of states. If you're in one of the following—Arizona, 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.
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