Gov. Ivey Announces $174 Million in Choose Act Funding
By Isabella Gomez
Blue RAM Media/Gulf Coast News
July 4, 2026
MONTGOMERY, Ala. A substantial increase to the Alabama education savings accounts created through Alabama’s CHOOSE Act are now fully funded for next school year, Gov. Kay Ivey announced on Wednesday.
Families whose applications were approved earlier this year can now access their funding through ClassWallet. The website sent out welcome emails about using the funds on or around July 1.
According to the Governor’s office, around 49,000 students, a record high, submitted applications for the 2026-2027 school year, according to their release. ALDOR approved more than 34,000 of those applications.
Gov. Ivey has championed the CHOOSE Act which allows parents to choose where their children are educated.
“The CHOOSE Act has changed the lives of thousands of Alabama families by enabling them to select schools that best align with their priorities and their child’s specific needs,” Ivey said in a release. “The increase in applications for the upcoming school year shows that the people of Alabama want school choice, and I am proud that we are able to give it to them.”
The Alabama Department of Revenue received 29,986 new applications for the 2026-27 school year, down from 36,873 last year, when every applicant was new to the program, according to information from the department.
However, the program is still very strong and a popular choice with many parents.
For the 2026-27 school year, lawmakers increased CHOOSE Act funding to $250 million, but by funding 34,000 students, ALDOR only used $174 million of this earmark.
Approved students enrolled in a participating school will receive $7,000. Students participating in homeschool or other home education programs will receive $2,000, with a maximum of $4,000 per family.
Other states have created similar programs and have dedicated the funding to ensure that parents can make independent decisions as to where their child goes to school.
The Legislature enacted the CHOOSE Act, short for Creating Hope and Opportunity for Our Students’ Education Act, in 2024, creating Alabama’s first statewide education savings account program. It allows eligible families to use public funds for approved education expenses, including tuition, textbooks, curriculum materials, school fees and certain educational services such as occupational or speech therapy.
While the law describes the ESA as a “refundable tax credit,” the program operates differently from a traditional tax credit. The ESAs are funded through the state’s Education Trust Fund, managed through ClassWallet and paid directly to schools or other approved providers. Families never handle the money themselves.
In Alabama, to be eligible for an education savings account, a family’s income cannot exceed 300% of the federal poverty level, about $80,000 for a family of three.
The release announcing this year’s award notification confirmed that the income requirement will be removed next year.
“The application process for the 2027-2028 academic year will begin in January 2027 and will be available to all Alabama families, regardless of household income,” the release said.
For more information, visit www.chooseact.alabama.gov.
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