Indiana

Education Scholarship Account Program

  • Education Savings Account (ESA)
  • Enacted 2021
  • Launched 2022

Indiana’s Education Scholarship Account Program is an education savings account (ESA) where students with special needs and their siblings receive a portion of their assigned state education funding for private school tuition or other educational expenses, including special needs services and therapies, individual classes, testing fees, and transportation.

We do not administer this program.

Eligibility Test Apply

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  • 15%

    Students Eligible Statewide

  • 862

    Participating Students (2024–2025)

  • $11,601

    Average Account Value (2024–2025)

  • 54%

    Value as a Percentage of Public School Per-Student Spending

Percent of Indiana students eligible for the Education Scholarship Account Program

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Student Funding

Use of Funds

Education Scholarship Accounts may be used for private school tuition and fees as well as other educational services, including testing fees; special needs services and therapies; individual classes and school-sponsored extracurricular activities; occupational therapy; and curriculum. Students may also use up to $750 of their ESA funds annually for transportation services to a special education provider.

Funding Amount and Source

Accounts are funded at 90% of what a student without an IEP would receive in a public school, which is affected by a student’s school district of residence. If the student chooses not to receive special education services from the district, accounts are funded with the per-student special education funding for the district of residence. Parents may roll over up to $1,000 of unused funds each year plus previous years’ rollover amounts to be used in subsequent years, up to when a participating student graduates or turns 22 years old. All of the $10 million appropriation has been distributed this year, meaning less than 1% of Indiana K–12 student population can participate. The Indiana legislature also appropriated an additional $1.5 million for administration of the accounts.

(Last updated July 18, 2024)

Student Eligibility

Students must come from families earning no more than 400% of the threshold for Free and Reduced-Price Lunch (FRL) program ($222,000 for a family of four in 2023–2024) and have an Individualized Education Plan (IEP) for students with special needs. Eligible plans include an IEP from a public school district as well as a special needs service plan from a private school. Siblings are also eligible to participate, but they may not use the funds to cover any disability-related expenses unless that sibling also has an IEP.

ESA recipients are not eligible to combine funding with Indiana’s voucher, the Choice Scholarship Program. ESA recipients are eligible to combine funding with Indiana’s School Scholarship Tax Credit program. Students who are between 5 and 22 years are eligible.

Indiana’s ESA program mandates participating students take the state test or the assessment dictated by their special education service plan. In addition to facilitating these tests, participating schools receiving ESA payments in excess of $100,000 face additional financial regulations and reporting requirements. Administration of the program is overseen by Indiana’s Treasury Department.

(Last updated July 22, 2024)

EdChoice Expert Feedback

Indiana’s Education Scholarship Account Program is the state’s first education savings account and is helping hundreds of Hoosiers with special needs obtain the educational services that best fit their needs. However, policymakers could do more to expand educational opportunities.   Eligibility for the ESAs is limited to students with special needs from families earning no more than 400 percent of the threshold for free and reduced-price lunch (FRL) ($222,000 for a family of four in 2023-24). This income limitation hampers options for all Indiana students with special needs who may not be in the best educational environments.    Accounts are funded at 90 percent of what a student would be allocated at a public district school via the state’s funding formula. While this amount is relatively high compared to other school choice programs, the program’s total appropriation amount ($10 million) means the program will only be able to serve no more than 2,000 students, or less than one percent of Indiana’s K–12 student population.  To expand access to educational choice, Indiana policymakers should increase the ESA amounts to be in-line with the per-pupil spending at district schools and expand eligibility to all students. Additionally, while the program’s funding is set at $10 million, there is not currently the possibility for further expansion with increased demand. Indiana lawmakers should consider funding the ESA through the state’s K-12 education funding formula so that all eligible students who want to use ESAs are able to do so.   Indiana’s ESA program mandates participating students take the state test or the assessment dictated by their special education service plan. In addition to facilitating these tests, participating schools receiving ESA payments in excess of $50,000 face additional financial regulations and reporting requirements. Administration of the program is overseen by Indiana’s treasury department, which is a governmental agency best suited for administering a program like this.   (Last updated December 18, 2023) 

Rules and Regulations

Program Guidelines

  • Income Limit: 400% x FRL
  • Prior Year Public School Requirement: None
  • Enrollment Cap: None
  • Budget Cap: $10 million (2024–25)
  • Account Cap: 90% State funding
  • Testing Mandates: State
  • Special Needs Accessibility: Pathway

Participant and Family Guidelines

  • Click Here for the Program Administrator’s Parent Handbook
  • Education Requirements: Ensure students take standardized test / receive education in the subjects of reading, math, social studies, and science
  • Parent Supplemented Funds/Scholarships: Allowed
  • Disbursement/Payment Frequency: Quarterly
  • Reimbursement: Not allowed
  • Miscellaneous: N/A

Provider Guidelines

  • Accreditation/Approval: State, regional, or national
  • Employment: Background checks
  • Nondiscrimination: Federal
  • Calendar/Curriculum/Academic: N/A
  • Financial: State audit
  • Miscellaneous: N/A

(Last updated September 4, 2024)

Governing Statutes

Ind. Code § 20-51.4

(Last updated September 4, 2024)