Student Funding

The South Carolina ESAs are initially funded at $6,000 per scholarship. This equals roughly 53 percent of public school per-student spending in South Carolina. The General Assembly must appropriate funding for the Education Scholarship Trust Fund and has discretion over increasing or decreasing the per-ESA funding amount.

Qualifying expenses for education savings accounts include tuition and fees of an education service provider; textbooks, curriculum or other instructional materials; tutoring services approved by the department of education, computer hardware or other technological devices; tuition and fees for an approved nonpublic online education service provider or course; fees for national norm-referenced examinations, advanced placement examinations or similar assessments, industry certification exams, and examinations related to college or university admission; educational services and therapies for students with disabilities from a licensed or accredited practitioner or provider; unbundled courses, services, extracurricular activities and tutoring from a public school district; contracted teaching services and education classes approved by the department of education; up to $750 for transportation associated with services from an eligible provider; fees for ESA account management; and any other educational expense approved by the department of education.

All funds remain in the student’s account until they graduate high school or turn 21 years old, whichever occurs first.

Student enrollment is capped through year three, at which point the General Assembly may decide to expand.

• 2024-2025, the program is limited to 5,000 scholarship students; 
• 2025-2026, the program is limited to 10,000 scholarship students; and 
• 2026-2027, and for all subsequent school years, the program is limited to 15,000 scholarship students. 

(Last Updated December 14, 2023)

Student Eligibility

ESA-eligible students must have attended public school in the prior school year, except for students entering kindergarten and prior ESA recipients. Additionally, student eligibility is based on a family’s needs through year three, at which point the General Assembly may decide to expand.  

• 2024–25: Targeted eligibility for students from households earning 200% or less of the Federal Poverty Limit. 
• 2025–26: Targeted eligibility for students from households earning 300% or less of the Federal Poverty Limit. 
• 2026–27 and beyond: Targeted eligibility for students from households earning 400% or less of the Federal Poverty Limit. 

(Last Updated December 14, 2023)

EdChoice Expert Feedback

The South Carolina Education Scholarship Trust Fund ESA Program is broadly available to most families (albeit subject to enrollment caps) and offers flexible use for the child’s education. But policymakers could do even more for South Carolina students.

The ESA program may not currently be combined with the Educational Credit for Exceptional Needs Children Fund (Tax-Credit Scholarship) Program.

The $6,000 ESA amount is fixed at the time of the program’s launch, with no cost-of-living adjustment or escalator for awards to increase with the rising cost of educational expenses.

The enrollment cap should be phased out after year three, or automatically adjusted to meet demand.

The means testing and prior public requirements should phase out after year three to offer universal funded eligibility to South Carolina K-12 students.

Administration of the South Carolina Education Scholarship Trust Fund Program is overseen by the Department of Education, which may contract with a third-party manager if it chooses to do so. This administrative structure should give the state department the flexibility to adapt to the needs of parents and ensure the program is run effectively.

High school students are required to take a nationally norm referenced assessment, except for students with disabilities.

The program generally avoids counterproductive regulations.

(Last Updated December 14, 2023)

Rules and Regulations

• Income Limit: Year 1 – 200% x Poverty, Year 2 – 300% x Poverty, Year 3 and thereafter, 400% x Poverty
• Prior year public school requirement: Yes 
• Geographic limit: Statewide  
• Enrollment Cap: Year 1 – 5,000; Year 2 – 10,000; Year 3 and thereafter, 15,000 
• Account Value: $6,000 
• Testing Mandates: National Norm Referenced (high school only, except disability status)  
• Budget Cap: None 

Parent Requirements: 

• Initial application and annually reapply. 
• Only use funds for qualified expenses under South Carolina Code § 59-8-110 through 59-8-220. 
• Not enroll full time in public school. 
• Provide instruction in writing, math, social studies, science. 
• Comply with the education service provider’s prescribed curriculum, dress code, and other requirements. 
• Takes required assessments. 
• Not participate in a home instruction program. 
• Provide all IEP documentation and acknowledge explanation of rights under IDEA for students with disabilities. 

(Last Updated December 14, 2023)

Governing Statutes

South Carolina Code § 59-8-110 and § 59-8-115 and § 59-8-220.  

(Last Updated December 14, 2023)

Legal History

On October 26, 2023, a group of plaintiffs including the South Carolina Education Association and the South Carolina State Conference of the NAACP filed a Petition for Original Jurisdiction in the Supreme Court of South Carolina challenging the state’s ESA program. They allege the ESA program lacks “a sufficient public purpose” [Art. X, Sec. 5 & 11], the Superintendent of Education is empowered beyond the scope of the “public education system” [Art. XI, Sec. 2], the legislature can only fund a “system of free schools open to all children” [Art. XI, Sec. 3], and ESA funds constitute a “direct benefit” for religious schools and “private educational institutions” [Art. XI, Sec. 4]. Plaintiffs argue there is no public purpose in the ESA program if participating private schools “are not required to provide clear educational benefits” and are not prohibited by statute from discriminating against students. Plaintiffs also argue “The only role that parents play is selecting the private school to which the State transfers these public funds” and cite factors potentially more determinative of parental control of funds: the ability for parents to receive rebates for out-of-pocket expenses and deposit their own dollars into the educational savings accounts. Eidson v. South Carolina Department of Education, Supreme Court of South Carolina (2023). Pending.

(Last Updated December 14, 2023)