Tennessee

Tennessee Education Freedom Scholarship Act

  • Education Savings Account (ESA)
  • Enacted 2025
  • Launched 2025

The Tennessee Education Freedom Scholarship Act is an education savings account (ESA) program which will be available to all Tennessee families in 2025. Parents must first use funds on tuition and fees to attend a private school. After this, families are able to utilize the accounts on other educational expenses. The scholarship program is funded through a one-time appropriation, and the amount a student receives is tied to the state’s base funding formula. Every participating student will receive $7,296 in the Act’s first year. Learn more about the Tennessee Education Freedom Scholarship Act, including eligibility, funding, regulations, and more.

We do not administer this program.

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  • 3rd

    Tennessee’s third educational choice program

  • $7,075

    Initial account value

  • 100%

    Student Eligibility with priority given to low-income families

  • 63%

    Account Value as a Percentage of Public School Per-student Spending ($11,278 in 2024-25)

Student Funding

Use of Funds

Funds must first be used for tuition and fees at a private school. If there are additional funds remaining, participants are free to use those funds on approved expenses like textbooks, curricula, uniforms, tutoring services, transportation, technology and computer hardware, college entrance exams, educational therapy, and expenses associated with summer academic programs and afterschool academic programs. Additionally, students can utilize these funds for Tennessee’s early postsecondary opportunity courses and industry credentials. Unspent funds may rollover each year.

Funding Amount and Source

The Tennessee Education Freedom Scholarship Act is funded by a one-time appropriation of $144,200,000 of general revenue funds. Each student in the program will receive a scholarship with an amount equal to the base formula funding amount under the Tennessee Investment in Students Achievement (TISA) formula. For the 2025-2026 school year, students in the program will receive $7,296. The amount in each student’s education savings account will continue to increase every year, as it is tied to the state funding formula.

(Last updated February 11, 2025)

Student Eligibility

Eligibility is universal in 2025, but the first 10,000 scholarships are reserved for students in family households with annual incomes below 300% of the federal free-and-reduced-lunch guidelines, are already eligible to participate in Tennessee’s existing educational choice programs, and/or have one or more state-recognized disabilities. The remaining 10,000 scholarships are available to all Tennessee families.

In 2026 and beyond, the program will grow by 5,000 scholarships each year if the number of students enrolled in the program exceeds 75% of the scholarships available the prior year. If the number of applicants exceeds the number of scholarships available, an additional priority system is followed. First in line are students who received a scholarship the previous year. Next are students from households with income at or below 100% of the amount required to receive free or reduced-price lunch. Next are students from households whose annual income is at or below 300% of the amount required to receive free and reduced-price lunch. Next is a student who was currently enrolled in a public school or is eligible to enroll in kindergarten. Finally, all students regardless of background are admitted in the order their scholarship applications are received.

(Last updated February 11, 2025)

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Rules and Regulations

Rules and Regulations 

  • Income Limit: None
  • Prior year public school requirement: None
  • Geographic limit: Statewide
  • Enrollment Cap: 20,000 students for year one. If at least 15,000 scholarships are awarded in 2025, the program must offer 25,000 scholarships for the next year. The number of students awarded scholarships will continue to increase if 75% of scholarships are awarded each year.
  • Account Value: 100% of state base funding ($7,296 per student in 2025-2026) As it is tied to the state funding formula (TISA) it will continue to increase each year.
  • Testing Mandates: National norm referenced test or the Tennessee Comprehensive Assessment Program Test; Results must be submitted to the Office of Research and Education Accountability by the private schools.
  • Budget Cap: None; The program was funded by a one-time appropriation.

Parent Requirements: 

  • Initial application.
  • Ensure that the student satisfies the compulsory school attendance requirement provided in § 49-6-3001(c)(1) through enrollment in a private school.
  • Not enroll the student full time in public school.
  • Comply with all Tennessee Education Freedom Act requirements.

School Requirements:

  • Results from a national norm referenced test or the TN Comprehensive Assessment Program Test must be submitted to the Office of Research and Education Accountability.

SGO Requirements:

  • None.

(Last updated February 11, 2025)

Governing Statutes

TN Code Ann. 49-6-3501 – 3512 

(Last updated February 11, 2025)