Tennessee Homeschool Funding Guide (2026)

If you're searching for Tennessee homeschool funding, here's the direct answer: Tennessee's school choice programs are largely unavailable to independent homeschoolers.

The state passed the Education Freedom Act in 2025, creating a universal scholarship program—but it explicitly excludes homeschool expenses^[2]. The only program that covers homeschool curriculum is the Individualized Education Account (IEA), which requires your child to have a qualifying disability with an active IEP.

This guide explains what's actually available, who qualifies, and what alternatives exist for Tennessee homeschool families.

What Funding Is Available for Tennessee Homeschoolers?

Tennessee has three school choice programs, but their homeschool eligibility varies dramatically:

Education Freedom Scholarship (EFS): $7,295 annually. Universal eligibility, but funds CANNOT be used for homeschool expenses. Requires enrollment in a registered private school (Category I, II, or III)^[2].

ESA Pilot Program: ~$9,800 annually. Limited to specific counties (Nashville, Memphis, Chattanooga) and requires private school enrollment. Not for homeschoolers^[1].

Individualized Education Account (IEA): ~$7,000-$12,800 annually. The ONLY program that covers homeschool expenses—but requires a qualifying disability with an active IEP^[3].

Bottom line: Unless your child has a documented disability with an IEP, Tennessee does not offer state funding for homeschool expenses.

Tennessee Education Programs Compared

Education Freedom Scholarship (EFS) - NOT for Homeschoolers

The Education Freedom Scholarship, created by the Education Freedom Act of 2025, is Tennessee's new universal school choice program^[2]. Here's why it doesn't help most homeschoolers:

Funding: $7,295 per student (2025-26), tied to Tennessee's TISA base funding formula

Eligibility: Universal for Tennessee residents in grades K-12 who are entitled to attend public school

The Catch: Students MUST enroll in a registered Category I, II, or III non-public school. Homeschoolers are explicitly excluded.

What About Umbrella Schools? Category IV umbrella schools (church-related schools that many Tennessee homeschoolers use) are NOT eligible for EFS. Only Category I, II, and III private schools qualify.

If you're currently homeschooling and want EFS funds, you would need to enroll your child in an eligible private school—essentially ending your homeschool status.

Individualized Education Account (IEA) - The Only Homeschool Option

The Individualized Education Account is the only Tennessee program that explicitly allows homeschool expenses^[3]. But eligibility is narrow.

Funding Amount: - Statewide average: ~$7,000 - Average for 2025-26: ~$12,788 (EdChoice data) - Capped at 100% of BEP state/local funding for your zoned district

Eligibility Requirements: - Must have an active IEP with a qualifying disability - Qualifying disabilities include: autism, deaf-blindness, hearing impairment, intellectual disability, orthopedic impairment, traumatic brain injury, developmental delay, visual impairment, or multiple disabilities - Must have attended a Tennessee public school for the full year prior (exceptions for kindergarteners and new Tennessee residents) - 504 plans, IFSPs, and ILPs do NOT qualify

Approved Homeschool Expenses: - Homeschool curriculum and supplementary materials - Tutoring services from accredited tutors - Educational therapies from licensed providers - Computer hardware and technology (requires pre-approval) - Textbooks and online learning programs - Standardized testing fees - Coverdell ESA contributions - Transportation - Umbrella homeschool program participation

Important: When you accept IEA funds, you waive IDEA rights. This is a significant trade-off for families accustomed to public school special education services.

IEA Eligibility Checklist

Key Deadlines for 2026-27

Why Can't Umbrella School Families Get Funding?

Many Tennessee homeschoolers register with Category IV church-related umbrella schools. This does NOT qualify you for EFS or ESA funding.

School Categories in Tennessee: - Category I: State-approved independent schools - Category II: Schools operated by TSSA member churches - Category III: Private schools operated by a church governed by the TN Bible Baptist Fellowship - Category IV: Church-related schools (umbrella schools)

Only Category I, II, and III schools are eligible for EFS funding. Category IV umbrella schools—which allow significant homeschool flexibility—are explicitly excluded.

This is by design. The legislature structured EFS as a private school tuition program, not a homeschool support program. Enrolling in an umbrella school keeps you classified as a homeschooler, which disqualifies you from funds.

Alternative Funding Options

Since most Tennessee homeschoolers don't qualify for state programs, consider these alternatives:

Federal Coverdell ESA: - Contribute up to $2,000 annually per child - Tax-advantaged growth and withdrawals - Covers curriculum, tutoring, computer equipment, and supplies - Income limits apply (phase-out begins at $95,000 single/$190,000 married)

529 Plan (Limited): - Tennessee's TNStars 529 is primarily for college savings - Federal law allows $10,000 annually for K-12 tuition - Tennessee does not offer state tax deductions for 529 contributions

HOPE Scholarship (College): - Tennessee homeschool graduates can qualify for the HOPE Scholarship - Requires 21+ ACT score OR completion of two dual enrollment courses with 3.0+ GPA - Must be registered with local school district and homeschooled for at least one year prior to graduation

Employer Education Benefits: - Some employers offer dependent education assistance - Check your benefits package for tuition reimbursement programs

Local Scholarships: - Check with local homeschool associations for curriculum grants - Some curriculum publishers offer need-based scholarships

Federal Coverdell ESA Eligible Expenses

• Curriculum and textbooks — All subjects and grade levels
• Tutoring services — Academic tutoring from qualified providers
• Computer equipment — Laptops, tablets, printers, software
• Internet access — For educational purposes
• Special needs services — If not covered by other programs
• Room and board — For students enrolled away from home (special cases)
• Uniforms — Required school uniforms
• Extended day programs — Before/after school programs (some cases)

Tennessee Homeschool Funding Decision Tree

Recent Legislative Changes

Tennessee's education funding landscape shifted significantly in 2025:

Education Freedom Act of 2025: Signed by Governor Lee on February 12, 2025 after a special legislative session. Created the universal EFS program but explicitly excluded homeschool expenses. Tennessee became the 13th state with universal school choice—but not for homeschoolers^[2].

First-Year Demand: Applications (42,827) exceeded twice the available slots (20,000), triggering an automatic increase to 25,000 scholarships for 2026-27^[4].

Legal Challenges: The EFS program faces ongoing legal challenges. EdChoice Legal Advocates is defending the program against lawsuits seeking to halt it.

Pending 2026 Legislation: - SB 1132: Would require ESA students to take state assessments - SB 1180: Would mandate background checks for educators - SB 1249: Comprehensive requirements including state assessments, published lesson plans, mandatory teacher licensure

Comptroller Report (January 2026): Found that most ESA students are not leaving low-performing schools, and ESA students are underperforming public school peers in achievement and growth. This could influence future program modifications.

Important Considerations

For Tennessee homeschool families exploring funding options:

If Your Child Has an IEP: - IEA is your only path to state homeschool funding - Weigh the benefits against waiving IDEA rights - The ~$7,000-$12,800 can cover substantial therapy and curriculum costs - Consider whether public school special education services are important to preserve

If You Want Funding But Don't Have an IEP: - You would need to enroll in a Category I, II, or III private school - This effectively ends your homeschool status - Part-time private school + homeschool may be possible in some cases

If You Want to Stay Independent: - Accept that Tennessee does not fund independent homeschooling - Use federal options like Coverdell ESA - Focus on free and low-cost curriculum resources - Connect with local homeschool co-ops for shared costs

The Tennessee legislature designed EFS as a private school program, not a homeschool program. Advocacy for future homeschool inclusion is ongoing, but don't expect changes in the near term.

The Bottom Line

Tennessee's school choice programs expanded significantly in 2025—but not for homeschoolers. The Education Freedom Scholarship, despite being "universal," explicitly excludes homeschool expenses. Only the Individualized Education Account covers homeschool costs, and it requires a qualifying disability with an active IEP.

For most Tennessee homeschool families, state funding isn't an option. Focus on federal alternatives like Coverdell ESAs, connect with local homeschool communities for resource sharing, and take advantage of Tennessee's relatively low homeschool regulatory burden.

If you have a child with a documented disability, explore IEA through the Tennessee Department of Education at tn.gov/education/iea.