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The Alabama CHOOSE Act provides eligible families with a refundable tax credit in the form of an education savings account worth $7,000 per student enrolled in a participating school, or $2,000 per student in a home education program (capped at $4,000 per family). The Alabama Department of Revenue (ALDOR) administers the program, and ClassWallet handles fund distribution. Through the 2026-27 school year, eligibility is limited to households with adjusted gross income at or below 300% of the federal poverty level. Starting in 2027-28, every K5-12 Alabama student qualifies regardless of income.
For a family weighing an accredited online private school, those dollars can cover most or all of a year's tuition. Here is how the program works and how to put it to use.
Governor Kay Ivey signed the Creating Hope and Opportunity for Our Students' Education Act, better known as the CHOOSE Act, on March 7, 2024. It launched for the 2025-26 school year with 36,873 applicants from every county in the state, and demand forced lawmakers to raise first-year funding from $100 million to $180 million.
Year two grew even faster. Nearly 49,000 students applied for 2026-27, a program record, and more than 34,000 were approved, representing over $174 million in education savings accounts. Those accounts were fully funded as of early July 2026, with welcome emails from ClassWallet going out to approved families around July 1 with instructions for accessing and spending funds.
Through the 2026-27 academic year, a student must be an Alabama resident in grades K5-12, between ages 5 and 19 (or up to 21 for students who qualify for services under IDEA or Section 504), and part of a household whose adjusted gross income does not exceed 300% of the federal poverty level for the preceding tax year.
The income cap disappears with the 2027-28 school year. From that point forward, any K5-12 Alabama resident can apply, which makes the January 2027 application window the first open door for higher-earning families who have been waiting on the sidelines.
When applications outnumber available funds, state law sets the order. The first 500 accounts go to students with special needs. Prior-year recipients come next, followed by dependents of active-duty service members zoned to priority schools, and then remaining applicants ranked by household income as a percentage of the federal poverty level. Siblings of participating students receive priority within these tiers.
CHOOSE Act funds pay for tuition, fees, and other qualified education expenses at approved education service providers (ESPs), a list that includes participating schools, tutors, and therapy providers. Participating schools must be accredited, which is the state's quality bar for where tuition dollars can go.
Every transaction runs through ClassWallet. Parents never receive cash or reimbursements; they direct payments from the account to the provider. Two rules catch families off guard. First, funds do not roll over: money left in the account at the end of the academic year returns to the CHOOSE Act fund, so it pays to plan a full year of spending. Second, a student cannot hold a CHOOSE Act ESA and a scholarship from a scholarship granting organization such as the Alabama Opportunity Scholarship Fund at the same time. If both come through, the family picks one.
Because the participating-school definition rests on accreditation rather than a physical campus, accredited online private schools can qualify, and that opens options for students in rural counties, student athletes, families who travel, and children who simply learn better outside a conventional classroom.
Quality still varies widely among online programs, and research points to what separates strong ones. A meta-analysis and bibliographic review by Yu (2022), covering studies of online learning outcomes across multiple countries, found that most reported positive results and that teacher-student interaction, individualized instruction, and timely teacher feedback were among the factors that drove learning gains. In practical terms, an online school where certified teachers actually teach, grade, and respond to students is a very different product from a content library, and a $7,000 award deserves the former.
The program runs on an annual cycle. For 2026-27, renewal applications opened December 15, 2025, new family applications opened January 2, 2026, and both closed on March 31, 2026, with award notifications beginning April 15 and funds landing around July 1. Expect a similar rhythm going forward: the next new application window opens in January 2027 for the 2027-28 year, and because that is the first universal-eligibility year, families should apply early and have documents ready.
Score Academy Online is a state-approved participating school under the Alabama CHOOSE Act. It is a Cognia-accredited, NCAA-approved online private school serving grades K-12 with live certified teachers, individualized education plans for every student, and live class sizes capped at six students in middle and high school.
All three learning packages accept CHOOSE Act funds through ClassWallet. With per-course pricing that starts at $415 for self-paced elementary courses, a $7,000 account can fund a complete self-paced year with money left for tutoring, or cover the bulk of a live-instruction schedule. The admissions team works with Alabama families on both sides of the process, handling school enrollment while providing the vendor details needed inside ClassWallet. Families comparing the CHOOSE Act with programs in other states can see how it stacks up on the school choice hub.
Program details change from year to year. Verify current eligibility rules, deadlines, and the participating school list with the Alabama Department of Revenue at chooseact.alabama.gov before making enrollment decisions.
How much is the Alabama CHOOSE Act worth per student? Students enrolled in a participating school receive $7,000 per year. Students in home education programs receive $2,000 each, with a family cap of $4,000. Award amounts are set by statute and do not vary by grade level.
Is there an income limit? Yes, for now. Through the 2026-27 school year, household adjusted gross income must be at or below 300% of the federal poverty level. Beginning with the 2027-28 year, the income cap is removed and all K5-12 Alabama residents are eligible.
Can homeschool families get the full $7,000? No. The $7,000 award applies to students enrolled in a participating school, which can include an accredited online private school. Students in home education programs receive up to $2,000 each, capped at $4,000 per family.
What happens to money we do not spend? Unused funds return to the CHOOSE Act fund at the end of the academic year. There is no rollover, so families should map out tuition and approved expenses for the full year.
Can we combine the CHOOSE Act with another scholarship? A student cannot receive a CHOOSE Act ESA and a scholarship from a scholarship granting organization at the same time. Families awarded both choose whichever is more valuable for their situation.
When can we apply next? The 2026-27 window closed on March 31, 2026. The next new application window opens in January 2027 for the 2027-28 school year, the program's first year of universal eligibility.
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