Alabama Homeschool Funding & ESA Guide (2026)

Alabama launched its first education savings account program in 2024-25 under the CHOOSE Act, bringing school choice funding to the state. Homeschoolers can participate—but with a significant caveat worth understanding upfront.

While private school families receive up to $7,000 annually, homeschool students receive $2,000 per child with a family maximum of $4,000^[1]. The program also has income limits. This guide covers who qualifies, how the reduced homeschool amount works, and whether the program makes sense for your family.

What Funding Is Available for Alabama Homeschoolers?

Alabama offers the CHOOSE Act ESA (Creating Hope and Opportunity for Our Students' Education). The program launched for the 2024-25 school year with $100 million in initial funding, which was quickly increased to $180 million due to overwhelming demand^[2].

Here's the critical distinction: funding amounts differ by school type. Private school families receive $7,000 per student, while homeschool families receive $2,000 per student—with a per-family cap of $4,000 regardless of how many children you homeschool.

This tiered approach reflects how the state views different educational settings, but it does mean Alabama homeschoolers receive less than a third of what private school families get.

CHOOSE Act Funding by Education Type

Eligibility Requirements

Understanding the Homeschool Funding Limitation

The $2,000 per student / $4,000 per family cap for homeschoolers is one of the lowest among states with homeschool-eligible ESA programs. For context:

- Arizona gives homeschoolers the same amount as private school families (~$7,000-$8,000) - Arkansas gives equal amounts to all students ($6,864) - Alabama gives homeschoolers $2,000 vs. $7,000 for private school

The family cap is particularly impactful. If you homeschool three children, you still receive only $4,000 total—roughly $1,333 per child. Compare this to a three-child private school family receiving $21,000.

Should you still apply? $2,000-$4,000 can meaningfully offset curriculum costs, especially if you're already below the income threshold. But go in with realistic expectations about what the funding will cover.

What Can You Spend CHOOSE Act Funds On?

• Curriculum & textbooks — Print, digital, online courses
• Tutoring services — From approved providers
• Educational therapy — Speech, occupational, behavioral therapy
• Testing fees — Standardized tests, college entrance exams
• Educational technology — With educational software/curriculum
• Private school tuition — If you use part-time private school classes

What CHOOSE Act Funds Cannot Cover

Standard restrictions apply to Alabama's ESA program:

- Athletics and sports fees — Equipment, league dues, uniforms - Transportation — No gas money or travel expenses - Parent compensation — You cannot pay yourself to teach - General supplies — Items without clear educational purpose - Vacations — Even to educational destinations

Given the modest funding amount for homeschoolers, you'll want to be strategic about prioritizing high-value educational purchases rather than spreading funds too thin.

How to Apply for the CHOOSE Act

Key Program Information

Special Needs Priority

Alabama's CHOOSE Act gives priority enrollment to the first 500 special needs students who apply each year^[1]. If your child has documented special needs, this priority can help ensure you receive funding even during periods of high demand.

However, note that the funding amount doesn't change for homeschool special needs students—you still receive $2,000 per child with the $4,000 family cap. The "priority" means earlier access to the program, not enhanced funding.

If your child has significant special needs requiring expensive therapies or services, the $2,000 amount may not cover much. In these cases, you might consider whether private school enrollment would provide access to the higher $7,000 amount, or explore other funding sources specifically for special needs services.

Strategic Considerations

Given the modest homeschool allocation, here's how to think about the CHOOSE Act strategically:

When it makes sense: - You're already below 300% FPL - $2,000-$4,000 would meaningfully impact your curriculum budget - You have one or two children (the family cap hurts larger families less) - You were already planning to buy from ClassWallet-approved vendors

When to think twice: - You're just under the income limit (next year you might not qualify) - You have many children (the $4,000 cap limits per-child benefit) - Most of your homeschool expenses wouldn't qualify - The documentation requirements seem burdensome for the amount

The program isn't bad—any state funding is helpful. But the combination of income limits, reduced amounts, and family caps makes Alabama's homeschool support less impactful than programs in states like Arizona or Florida.

Important Considerations

Before enrolling in Alabama's CHOOSE Act, understand these factors:

The Homeschool Discount: Alabama explicitly provides less funding to homeschoolers than private school families. While this may reflect the state's assessment of relative costs, it's worth noting that most other ESA states provide equal amounts. This disparity could potentially change with future legislation.

Program Newness: The CHOOSE Act launched in 2024-25. Rules, processes, and even funding amounts could evolve as the state gains experience administering the program. Stay informed about any changes.

Income Volatility: If your income fluctuates near the 300% FPL threshold, you might qualify one year and not the next. This makes long-term planning more difficult.

ClassWallet Constraints: You must purchase through ClassWallet-approved vendors or submit purchases for approval. Your favorite curriculum might not be available through the marketplace.

For families that qualify and can work within these constraints, the CHOOSE Act provides real—if modest—support for homeschool expenses.

The Bottom Line

Alabama's CHOOSE Act brings ESA funding to the state, but homeschoolers receive a fraction of what private school families get—$2,000 per student with a $4,000 family cap, compared to $7,000 for private school students. Income limits (300% FPL) further restrict eligibility.

If you qualify and can work within the constraints, the funding provides meaningful support for curriculum and educational expenses. But go in with realistic expectations: this isn't the generous universal funding you'll find in states like Arizona or Florida.

Check your income eligibility, then visit the Alabama Department of Revenue website to apply if the program makes sense for your family.