An Education Savings Account (ESA) is a state-funded account that eligible families can use to pay for qualified education-related expenses, such as tuition for private school, school supplies, and tutoring.
In Alabama, eligible families who have a student enrolled in a participating school can receive $7,000 per student.
At this time, eligibility for the education savings account is income based with the exception of students qualifying with special needs. Basic minimum qualifications are as follows:
Student must be between 5-19 years old (or up to age 21 if they qualify for services under the Individuals with Disabilities Education Act (IDEA) of 1975 or Section 504 of the Rehabilitation Act of 1973).
Student cannot currently receive a scholarship through the Alabama Accountability Act.
Annual Gross Income (AGI) must be at or below 300% of the Federal Poverty Line for year ending 2024 to qualify.
While the income thresholds for the 2025-2026 school year have not yet been released, you can reference the 2024-2025 income thresholds to get an idea of what 300% of the federal poverty line looks like.
Beginning in the 2025-2026 school year, all students, except for students with special needs, are subject to the income threshold until the 2027-2028 school year.
Family Size | 300% of Federal Poverty Guideline |
1 | $45,180 |
2 | $61,320 |
3 | $77,460 |
4 | $93,600 |
5 | $109,740 |
6 | $125,880 |
7 | $142,020 |
8 | $158,160 |
The ESA can be used toward any qualifying education-related expense, as long as it has been approved by the state. Such expenses can include tuition for private school, special needs services, and school supplies.
Families will have the option to split their funds however they wish. For example, families may choose to spend the entire ESA toward tuition or families may choose to use a portion of the ESA on tuition and the remaining portion toward supplies or special needs services.
The funds do not rollover. At the end of the school year, any remaining funds return to the state. If families are awarded the ESA and have remaining funds, please encourage them to use it toward supplies or other school-related expenses.
At this time, we are awaiting guidance from the state for a concise answer on required documentation. However, we anticipate that families will need to be able to provide the following:
Proof of Identification (Driver's license or State ID)
A document to serve as proof of residency (only residents of Alabama are eligible for the program)
A document to serve as proof of citizenship (only U.S. citizens are eligible for this program)