State of Choice: February 2025
As we move into March, school choice momentum is as strong as ever. In February, two new states enacted choice programs offering universal eligibility into law, and one more could do so with the stroke of a governor’s pen. Several others are making rapid progress.
With 2025 shaping up to be another successful year for advancing choice, the parent-led education freedom movement remains strong.
In February, Tennessee became the first state of 2025 to enact a choice program. The Volunteer State’s new ESA will offer universal eligibility and require funds to first be used on tuition and fees. The remaining funds can then be used on a wider use of educational expenses. It is expected to launch for the 2025–2026 school year. Initially, 20,000 scholarships will be awarded statewide, with half being reserved for students from low- and middle-income families, students who already qualify for the state’s existing choice programs, and students with disabilities.
If 75% of scholarships are awarded, the number of available scholarships will increase to 25,000 in the program’s second year. Scholarships will be valued at approximately $7,000.
Just before the month’s end, Idaho Gov. Brad Little signed H. 93 into law, establishing a refundable tax credit offering universal eligibility and wide use of funds. It will be the state’s first private school choice program. An award amount of $5,000 may be claimed per eligible student, and $7,500 may be claimed for students with disabilities, with $50 million appropriated for the program.
Meanwhile, H.B. 0199, the Wyoming Freedom Scholarship Act, passed the legislature at the end of the month. If signed by Gov. Mark Gordon, it will expand the state’s existing ESA to include all students. The legislature is appropriating $30 million for the program, with accounts funded at $7,000 per student.
One of the most watched states for education choice this year, Texas, has two similar proposals out to establish an ESA with universal eligibility. S.B. 2 would create an ESA program funded through the ESA Program Fund with $1 billion in funding, comprised of state appropriations and private contributions. Priority would be given to students who were previously enrolled in public school, are members of a low-income household, and/or have a disability. ESA amounts would be about $10,000 per student and $11,500 for students with disabilities. If more applications are received than available funding, awards would be determined by lottery. Families may use funds on a wide use of educational expenses.
H.B. 3, a similar ESA proposal that also offers universal eligibility, is more stringent in how families may use ESA funds, setting clear distinctions between funds allocated for accredited private schools and homeschooling. However, it includes more funding for special needs students, at about $30,000 per student.
In New Hampshire, H.B. 115 and S.B. 295 are moving through the House and Senate seeking to remove the Education Freedom Account (EFA) program’s income limit. This move would make New Hampshire the fifth state to offer true universal education choice, available to all students, with a consistent funding source, with a wide use of educational expenses. And in her February budget proposal address, Gov. Kelly Ayotte announced her support for universal EFAs for public school students. S.B. 295 received a public hearing in mid -February, and H.B. 115 is likely to receive a committee recommendation in early March.
South Carolina lawmakers are also making strides to expand choice for families. S.B. 0062, a bill aimed at expanding and reforming the Palmetto State’s existing ESA, was introduced in the Senate with a proposed income cap of 600% of the Federal Poverty Level (FPL), However, after amendments, the bill passed the chamber in late January with a reduced income cap of 400% FPL.
Late in February, the House passed another amended version of the bill with universal eligibility, lifting the income cap completely. It now returns to the Senate. Scholarships will be worth $9,000 per student in the first year, increasing to 90% of the average per-pupil funding thereafter. The bill also proposes requiring the state’s Department of Education to adopt an open enrollment policy for district schools. After the South Carolina Supreme Court ruled in September to remove tuition as an allowable expense, this bill aims to restore it. It remains to be seen how much funding will be appropriated toward the program under this proposal.
North Dakota legislators are also seeking to add the Roughrider State to the list of states offering school choice programs for all. H.B. 1540/S.B. 2303, seeking to create an ESA with universal eligibility, passed the House late in February. The legislation would fund the program through a $40 million appropriation, with each ESA receiving 50% of the statewide average per-pupil education funding. S.B. 2400, another bill seeking to create an ESA program with universal eligibility, passed the Senate in February. The bill proposes a $3 million appropriation for the program with accounts funded at $1,000 each.
Kansas, Louisiana, and Missouri also have proposals to watch.
S.B. 75 would establish Kansas’ first refundable tax credit for K –12 education. Families would be able to claim $8,000 per child to attend an accredited school and $4,000 for a non-accredited school, with the total credits available capped at $125 million for 2025. It was referred to the Senate Committee on Ways and Means in February. Meanwhile, Missouri Gov. Mike Kehoe is recommending $50 million in general revenue funding to expand the Missouri Empowerment Scholarship Accounts Program. Finally, in Louisiana, Gov. Jeff Landry’s budget proposal includes a $93.51 million appropriation to fund the GATOR Scholarship Program, which was enacted last year.
With so many advancements underway, 2025 is shaping up to be yet another successful year for the education choice movement and the parents driving it forward. With two new states enacting programs with universal eligibility and several others on the verge of doing the same, more families across America are set to gain greater access options to educational options.
