Every time I talk about government funding, people assume I mean R&D credits or defense contracts for deep tech companies. But one of the biggest, and least talked-about pots of public money in the country doesn’t go to corporations at all – It goes straight to families to use on educational needs!
It’s called an Education Savings Account, or ESA. 18 states now run active ESA programs, and the scale of this is bigger than most people realize. National ESA participation is estimated at roughly 500,000 students across states with operating programs, according to EdChoice, the most-cited tracker in this space. Typical ESA awards run $7,000–$11,000 per student depending on the state, which puts total ESA-only spending nationally in the neighborhood of $3.5–5.5 billion a year (my estimate, based on participation × typical award size. No single published figure isolates ESA spending from the broader school-choice category, which also includes vouchers and tax-credit scholarships).
The ESA program is an amazing opportunity for both families and education providers. I work with EdTech companies that are ESA-approved, or in the process of getting approved, helping them navigate vendor applications and marketplace positioning. I’m also a parent with school-aged kids so I see both sides of this up close.
If you’re a parent, this is money that may already be sitting on the table for tutoring, online courses, curriculum, and enrichment. If you’re a provider or business owner in education, this is a marketplace of families with public dollars to spend, and most small providers have no idea they’re eligible to register.
This guide covers both sides.
What Is an ESA, Actually?
An ESA is a state-authorized account, funded with public education dollars, that a parent controls directly. Instead of that money automatically going to a public school district, the state deposits it (or a portion of it) into an account you can spend across a range of approved educational categories: tuition, tutoring, curriculum, online courses, therapies, education-related products, and testing fees. Most states use a third-party platform (ClassWallet, Odyssey, or a scholarship-fund administrator) to manage applications and disbursements.
Two things to know before you dive into your state below:
- “ESA” doesn’t always mean the same thing everywhere. Some states’ programs are close to universal and genuinely flexible – money for tutoring, curriculum, and online providers, not just private school tuition. Others are narrowly restricted to students with disabilities, or structured more like a private-school voucher where tuition is the primary approved use. I’ve noted which is which below.
- These programs move fast. Funding amounts, eligibility rules, and application windows change year to year. Treat every number below as a starting point, and confirm the current details on the official site before you apply or register.
For Parents: Does Your State Have an ESA?
Here’s where things stand as of writing, listed alphabetically by state so you can jump straight to yours.
Alabama — CHOOSE Act Income-capped at 300% of the federal poverty level. $7,000/year for participating schools, or $2,000/student (max $4,000/family) for home education. Covers tutoring and educational therapies too. Apply: chooseact.alabama.gov
Arizona — Empowerment Scholarship Account (ESA) Universal eligibility, no income cap. Most students receive $7,000–$8,000/year (special needs awards run higher). Covers tuition, tutoring, curriculum, online learning, and more. Apply: azed.gov/esa
Arkansas — LEARNS Act Education Freedom Account (EFA) Universal, no income limits. About $6,864–$7,208/year. Broad use across tuition, homeschool curriculum, and tutoring. Apply: arkansasefa.com
Florida — Step Up For Students (PEP, FES-UA) The largest ESA ecosystem in the country, serving 220,000+ students across multiple programs. PEP (for homeschool/non-enrolled families) runs around $8,000/year; other programs vary. Broad approved-expense list, including live tutoring and online courses. Apply: stepupforstudents.org
Georgia — Promise Scholarship Narrower eligibility: income-capped at 400% FPL and limited to students zoned for the lowest-performing 25% of public schools. Up to $6,500/year for private school tuition and tutoring. Apply: mygeorgiapromise.org
Indiana — Education Scholarship Account (ESA) Special-needs-only program (students with an IEP and their siblings), income-capped at 400% FRL. Up to $20,000/year for the student with the disability, $8,000 for siblings. Apply: in.gov/doe/eoq/esa
Iowa — Students First ESA Universal as of 2025-26, no income limits. $8,148/year for the 2026-27 school year, but funds are primarily for tuition and fees at an accredited private school, not a general tutoring/curriculum wallet. Apply: educate.iowa.gov
Louisiana — LA GATOR Scholarship Launched in 2025, phasing toward universal eligibility. Currently prioritizes low-income families and students with disabilities; awards range roughly $5,190–$15,253/year depending on need. Covers tuition, tutoring, and curriculum. Apply: doe.louisiana.gov (LA GATOR program page)
Mississippi — Education Scholarship Account (ESA) Special-needs-only, small program with limited annual funding. About $8,007/year, reimbursement-based. Apply: mdek12.org/OSE/ESA
Montana — Special Needs Equal Opportunity ESA Special-needs-only, no income cap. $5,000–$8,000/year depending on grade level and district funding formula. Covers tutoring, therapies, and online programs. Apply: opi.mt.gov (ESA program page)
New Hampshire — Education Freedom Account (EFA) Became universal in June 2025 (income caps removed). Base funding around $4,265–$5,200+/year, with add-ons for special needs. Broad use: tuition, tutoring, curriculum, technology. Apply: nh.scholarshipfund.org
North Carolina — Opportunity Scholarship / ESA+ Two separate programs. The Opportunity Scholarship (universal since 2024) is income-tiered, $3,574–$7,942/year, and largely restricted to private-school tuition. ESA+ is for students with disabilities, $9,000–$17,000/year, with broader approved uses. Apply: k12.ncseaa.edu
South Carolina — Education Scholarship Trust Fund (ESTF) Income-capped (300% of the federal poverty level for 2025-26, expanding to 500% in 2026-27) and enrollment-capped (10,000+ students). About $7,500–$7,634/year, usable for tuition, tutoring, and therapies. Apply: ed.sc.gov (ESTF program) via ClassWallet
Tennessee — Education Freedom Scholarship (EFS) Universal starting 2025-26, but funds prioritize tuition and fees at a registered private school; half of first-year slots reserved for lower-income or disability-priority families. About $7,300/year. Apply: tn.gov/education/efs
Texas — Texas Education Freedom Account (TEFA) Brand-new, launched with $1 billion in funding – the largest first-year ESA launch nationally. About $10,474/year for private school, up to $30,000 for students with an IEP, or $2,000/year for homeschool families. Not first-come, first-served. It’s awarded via lottery within priority tiers. Apply: educationfreedom.texas.gov
Utah — Utah Fits All (UFA) Open to every K-12 resident, but capped funding means awards go by lottery (roughly 10,000–16,000 seats). $8,000/year for private school/tutoring paths, $4,000–$6,000 for homeschool. Apply: utaheducationfitsall.org
West Virginia — Hope Scholarship Universal starting with the 2026-27 school year (previously required prior public-school enrollment). About $5,267–$5,436/year. Broad use, including tutoring and curriculum. Apply: hopescholarshipwv.gov
Wyoming — Steamboat Legacy Scholarship ESA Universal for K-12 (income-limited for pre-K). $7,000/year, capped by a $30 million statewide appropriation. Note: the program was briefly blocked by a court injunction in 2025 before being reinstated. It’s worth double-checking current status before you apply. Apply: edu.wyoming.gov/parents/education-savings-accounts
Bottom line for parents: if your state has any ESA, even a narrow one, it’s worth five minutes to check your eligibility. A lot of families assume these programs are only for private-school tuition and never realize tutoring, online courses, and enrichment often qualify too.
For Providers: How to Get on the Other Side of This
If you run a tutoring service, an online course platform, a curriculum company, or any kind of supplemental education business, ESA programs are effectively a state-sponsored customer base. There are families who already have money earmarked for exactly what you sell.
The general path looks similar across states, even though every program has its own portal and paperwork:
- Confirm your service category is eligible. “Tutoring” and “online courses” are approved expenses in most, but not all, ESA programs — check the specific state’s allowable-expense list before assuming.
- Register as an approved provider or vendor through that state’s platform. Florida uses Step Up For Students and its MyScholarShop marketplace; many other states use ClassWallet or Odyssey as the payment rail.
- Get through onboarding. This usually means business registration details, background-check documentation, and sometimes credentialing requirements for instructors.
- List your services and learn the invoicing rules. Every platform has specific requirements for what an invoice must include (student name, account holder, service dates, itemized description). Missing a field is the single most common reason payments get rejected.
- Repeat per state. There’s no single national ESA marketplace. A business serving families in Florida, Texas, and Arizona has to register separately in each.
I’ve been in the weeds of this process firsthand – writing vendor and marketplace applications for EdTech companies, learning what reviewers actually flag versus what founders assume will trip them up, and working through the gap between what a product does and how a specific state’s approved-expense categories describe it. That gap is where most applications get stuck, and it’s rarely about the product itself.
Bottom line for providers: the funding already exists. The only question is whether you’re positioned to receive it. Many education businesses don’t know this exists or haven’t taken the time to apply and that means there’s real, low-competition upside for the ones that do.
If you’re an EdTech founder or education provider weighing whether to apply, or already stuck in the process, reach out to me at amisha@proposalarc.com. I’m happy to talk through the application process and where founders tend to get tripped up.
This is general information current as of August 2026. ESA programs, funding amounts, and application windows change frequently — always verify current details on the official state site before applying or registering as a provider.
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