Explained, Alabama's CHOOSE Act: How Parents Can Use Funds for Private School and Homeschooling - Times of India

From January 2, 2025, eligible families in Alabama can apply for a new state program providing funds for private school tuition, homeschooling costs, and other educational expenses for the next school year, reports the Associated Press. This initiative falls under The CHOOSE Act.

What is the CHOOSE Act?

The Creating Hope and Opportunity for Our Students’ Act, 2024 (CHOOSE Act) is administered by the Alabama Department of Revenue (ALDOR). According to the official website, The CHOOSE Act makes refundable income tax credits, known as Education Savings Accounts (ESAs), available to support the success of eligible K-12 students in Alabama.
Education Savings Accounts can be used to pay for tuition and other qualified educational expenses at approved Education Service Providers (ESPs). Under this program, eligible families will receive:

  • $7,000 per participating student enrolled in a participating school
  • $2,000 per participating student enrolled in a home education program (up to a maximum of $4,000 per family).

What is the application process

The application window for the 2025-2026 school year opens tomorrow, January 2, 2025. To complete the application, parents will need the following documents:

  • Student Birth Certificate
  • Proof of Alabama Residency: Documentation matching the physical address listed on the application.
  • Proof of Income: This includes the most recent federal or state tax return, Form W-2 or 1099, Social Security Statement, or a statement of benefits from programs like Temporary Assistance for Needy Families (TANF) or Supplemental Nutrition Assistance Program (SNAP).

What is the Eligibility Criteria?

According to the official website, the following criteria must be met for families to qualify for The CHOOSE Act:

  • Alabama Residency: The student must be a resident of Alabama.
  • Household Income: Household income must not exceed 300% of the federal poverty level, as outlined in the following table:
Persons in Family/Household 300% of 2024 Federal Poverty Guidance
1 $45,180
2 $61,320
3 $77,460
4 $93,600
5 $109,740
6 $125,880
7 $142,020
8 $158,160

According to the Associate Press, the program is initially open only to families with an adjusted gross income at or below the federal poverty level, but this income limit will go away in 2027. Further, students with disabilities, military families and lower income families will get priority for the funds.
Eligible families will get the funds directly into the student’s ESA beginning July 1, 2025.
For more information, candidates are advised to visit the official website of The CHOOSE Act, i.e., https://classwallet.com/alchoose/.

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