South Carolina Homeschool Funding Guide (2026)

South Carolina launched its Education Scholarship Trust Fund (ESTF) with significant fanfare—and significant limitations. The program provides $7,500 or more annually for qualifying students, but there's a critical restriction: homeschoolers are not eligible^[1].

The ESTF requires students to attend a "non-zoned school," which means a private school outside your assigned public school district. Homeschool, regardless of how it's structured, doesn't qualify. This guide explains what the ESTF covers, why homeschool is excluded, and what alternatives South Carolina families actually have.

What Funding Exists in South Carolina?

South Carolina's Education Scholarship Trust Fund (ESTF) was created to provide education funding for families choosing alternatives to their zoned public school. After facing a court challenge, the program was reinstated in 2025 and continues to expand.

Funding amounts: - Standard: $7,500 (2025-26), increasing to $7,634 (2026-27) - Special needs: Up to $12,000

The critical restriction: Funds can only be used for "non-zoned school" attendance—meaning a private school outside your assigned public school district. Homeschool explicitly does not qualify, regardless of which of South Carolina's three homeschool options you use.

ESTF Eligibility by Education Type

Understanding the "Non-Zoned School" Requirement

The ESTF's "non-zoned school" requirement is the key barrier for homeschoolers. Here's what it means:

Zoned School: Your assigned public school based on residence.

Non-Zoned School: A school that isn't your assigned public school—typically a private school.

Why Homeschool Doesn't Qualify: South Carolina law treats homeschool as a separate category from "school" attendance. Even though homeschool is legal and regulated, it doesn't meet the program's definition of attending a non-zoned school.

This isn't an oversight—it's how the program was designed. The ESTF was created primarily to support private school tuition, not home-based education.

ESTF Program Details (For Reference)

Alternative Funding for SC Homeschoolers

Without state support, South Carolina homeschoolers should focus on federal programs:

Federal Funding Options

• Coverdell ESA — Up to $2,000 per year per child in tax-advantaged savings. Covers curriculum, tutoring, computers, and educational expenses. Tax-free growth and withdrawals.
• 529 Plan — South Carolina offers Future Scholar 529 with state tax deductions. Federal law allows $10,000 annually for K-12, though rules vary.
• Employer Benefits — Some employers offer dependent education assistance. Check your benefits package.

South Carolina Homeschool Options

South Carolina offers three homeschool pathways, none of which qualify for ESTF:

Option 1 — School District Approval: Submit curriculum and records to your local school district for approval. Most restrictive option with testing and review requirements.

Option 2 — SCAIHS (SC Association of Independent Home Schools): Join SCAIHS, the oldest homeschool association. Requires membership, annual testing, and maintaining a portfolio.

Option 3 — Homeschool Association: Join any approved homeschool association (dozens exist). Generally less restrictive than Options 1 or 2.

Each option has different requirements and oversight levels. None provide access to state funding, but Option 3 typically offers the most flexibility.

The ESTF Court Challenge

South Carolina's ESTF faced a significant legal challenge in 2024, with courts initially ruling against the program. The program was reinstated in 2025 through new legislation (Bill 62).

What Changed: - Program structure was modified to address court concerns - Income limits were adjusted - Scholarship caps were implemented

What Didn't Change: - Homeschool remains ineligible - "Non-zoned school" requirement remains in place - Program still requires private school enrollment

The legal history means the ESTF's long-term stability may face continued challenges. But regardless of the program's future, homeschool exclusion appears to be a stable design choice, not something at risk of changing.

Looking Forward

Could South Carolina ever offer homeschool funding?

Current Reality: No legislation to include homeschool in the ESTF or create a separate homeschool program has advanced.

Political Landscape: South Carolina has a mixed school choice environment. The ESTF faced legal challenges, suggesting expansion might be difficult.

ESA Trend: Other southeastern states (Florida, Tennessee, North Carolina) have created ESA programs that include homeschool. This creates templates South Carolina could follow.

Advocacy Needed: If homeschool funding matters to you, engage with state legislators and school choice organizations.

For now, South Carolina homeschoolers should plan based on current reality: no state funding, three regulated homeschool options, and federal alternatives as the primary financial support.

The Bottom Line

South Carolina's Education Scholarship Trust Fund provides meaningful funding for private school families but explicitly excludes homeschoolers. The "non-zoned school" requirement means no homeschool option—regardless of which pathway you choose—qualifies for state funding.

For now, South Carolina homeschoolers should maximize federal options like Coverdell ESAs and explore 529 plan state tax deductions. These provide genuine, if modest, support while you maintain compliance with whichever SC homeschool option you've chosen.