CHOOSE Act at a glance
| 2026-27 | 2027-28 |
|---|
| Private school ESA | $7,000 | $7,000 (amount per current law) |
| Homeschool ESA | $2,000, max $4,000 per family | Same |
| Income limit | 300% of poverty ($96,450 for four) | None |
| Application window | Closed March 31, 2026 | Opens January 2027 |
| Applicants / funded | About 48,900 / 34,000+ | - |
| Wallet | ClassWallet | ClassWallet |
| Rollover | No; unused funds return June 30 | No |
The Creating Hope and Opportunity for Our Students' Education (CHOOSE) Act, signed March 7, 2024, created education savings accounts that are technically refundable income tax credits. You don't wait for a tax refund, though: ClassWallet deposits the money into a digital wallet starting July 1, and you pay approved providers from it.
CHOOSE Act eligibility
For 2026-27, a student had to be in grades K5-12, live in Alabama and come from a household at or below 300% of the 2025 federal poverty guideline. Kindergartners must turn 5 by September 1.
CHOOSE Act Alabama income limits for 2026-27:
| Household size | Income limit |
|---|
| 1 | $46,950 |
| 2 | $63,450 |
| 3 | $79,950 |
| 4 | $96,450 |
| 5 | $112,950 |
| 6 | $129,450 |
| 7 | $145,950 |
| 8 | $162,450 |
For 2027-28, the income requirement goes away. Any Alabama K5-12 resident can apply. That is the biggest change families should plan for.
Priority order
When applications exceed funding, ALDOR awards ESAs in this order:
- The first 500 ESAs go to students with special needs
- Students who had an ESA the prior year, and their siblings
- Dependents of active-duty service members enrolled in or assigned to a priority school (a public school graded D or F)
- Everyone else, ranked by household income as a percentage of poverty
About 48,927 students applied for 2026-27, including 18,941 renewals and 5,115 students with special needs. The governor's office reported more than 34,000 approved, with over $174 million in ESAs.
How much is the CHOOSE Act ESA?
- $7,000 per student enrolled in a participating school
- $2,000 per student in a home education program, including homeschool, co-ops and group programs, capped at $4,000 per family
For a family with three or more homeschoolers, all eligible students appear in ClassWallet, but only two wallets show funds. You can spend the $4,000 on any of your eligible students. Families pay any costs above the ESA themselves.
Key dates
- December 15, 2025 - March 31, 2026: 2026-27 renewals
- January 2 - March 31, 2026: 2026-27 new family applications
- From April 15, 2026: award notices
- June 30, 2026: proof of enrollment due for July 1 funding (homeschool families need no action)
- July 1, 2026 - June 30, 2027: spending year; unused funds return to the CHOOSE Act Fund
- Early 2027: renewal information for 2027-28
- January 2027: 2027-28 applications open to all income levels
CHOOSE Act application walkthrough
- Gather documents now. New families need the student's birth certificate, proof of Alabama residency matching the application address, and proof of income, usually the latest tax return. Non-filers can use a W-2, 1099, Social Security statement or TANF/SNAP statement.
- Apply when the window opens in January 2027 through the FACTS family portal linked from the CHOOSE Act site. Add special needs or military documents if they apply.
- Renewing? Watch for ClassWallet's renewal email in December. Have your FACTS login and next year's school name. Missing the deadline ends eligibility for that year.
- After an award, submit proof of enrollment at a participating school by June 30 for July funding. Later submissions are funded the following month.
- Accept the affidavit in ClassWallet's Balance tile. Until you accept, your balance shows $0.
How ClassWallet purchases work
All CHOOSE Act spending runs through ClassWallet. There is no reimbursement to families. You pay approved Education Service Providers (ESPs) from the wallet, choose an expense category for each purchase, and ALDOR reviews every expense. ALDOR can reject invoices it considers unreasonable or suspects are fraudulent.
Becoming an approved vendor: schools, tutors, therapists and companies apply year-round through ALDOR's online ESP form. ALDOR decides within 14 days, then the ESP finishes ClassWallet onboarding. Tutors need accreditation, a bachelor's degree or state certification, plus a background check. Therapists need a valid license. A parent can't be paid as an ESP for their own child.
What you can buy with the CHOOSE Act
The 2026-27 approved expense list includes:
- Tuition and fees at a participating school (not athletics, child care, field trips, uniforms or transportation)
- Textbooks and curriculum in art, English language arts, foreign languages, math, music, religion, science and social studies
- Instructional materials for one student, such as workbooks, manipulatives, science kits, microscopes and telescopes (up to $250 each)
- Private tutoring, in person or online, in approved subjects
- Nonpublic online learning programs and educational subscriptions in approved subjects
- Educational software and apps
- Educational therapies for students with disabilities, such as ABA, dyslexia, speech, occupational and vision therapy
- Tests and prep, including AP, SAT, ACT and related courses
- Computers up to $1,200, once every two academic years, and tech aids up to $500 a year (no gaming devices, 3D printers or TVs)
A homeschool family's $2,000 can cover a full curriculum such as Abeka, BJU Press or The Good and the Beautiful, plus Math-U-See or All About Reading. Online programs like Time4Learning, practice apps like IXL and live classes on Outschool may also fit if the provider is an approved ESP. Browse homeschool curriculum and tutoring, save your list to your wishlist, and check that each vendor is in ClassWallet. See what ESA funds can be used for for more ideas.
Homeschoolers and the CHOOSE Act
Homeschoolers qualify for $2,000 per student, up to $4,000 per family, deposited from July 1 with no enrollment paperwork. Some families call this the Alabama homeschool grant. The computer and tech limits still apply. Because funds don't roll over, plan the full year's purchases early. See homeschooling in Alabama for the church school and private tutor options.
Common CHOOSE Act problems
- Missing the March deadline. There was no late window for 2026-27.
- Income documents that don't match. Use your latest return and an address that matches the application.
- Not accepting the affidavit. Funds stay at $0 until you do.
- Buying outside ClassWallet. There is no reimbursement.
- Leaving money unspent. Balances return to the state after June 30.
- Bulk orders. Multiple units beyond what one student could use are not allowed.
Federal tax credit: has Alabama opted in?
Yes. Governor Kay Ivey opted Alabama in through Executive Order 742 in January 2026, and Alabama is on the IRS list of participating states dated September 14, 2026. From January 1, 2027, donors can claim up to $1,700 for gifts to listed SGOs serving Alabama students, under Treasury's proposed rules. Alabama also has its own tax-credit scholarships under the Accountability Act; see the Alabama scholarships hub and the federal scholarship tax credit guide.