States across the U.S. are expanding school choice programs in 2026 as lawmakers increase funding, broaden eligibility, adjust existing programs, and prepare for a new federal tax credit scholarship program set to begin in 2027.
The activity comes as legislative sessions wind down in many states and as nearly 30 states opt into the federal K-12 education tax credit scholarship program created under President Donald Trump’s 2025 “One Big Beautiful Bill.” The program is scheduled to take effect Jan. 1, 2027.
In an in-depth review of programs around the country, EdChoice, a national school choice advocacy and research organization, offered a look at how several states have expanded school choice programs this year, while others have seen proposed restrictions, legal fights, or stalled restrictions.
Funding boosts in key states: Alabama, Missouri, Oklahoma
In Alabama, Republican Gov. Kay Ivey signed a 2026 budget that allocates $250 million to the state’s Creating Hope and Opportunity for our Students’ Education ( CHOOSE) Education Savings Account (ESA) program, according to EdChoice. The funding could cover education expenses, such as private school tuition, for about 50,000 students.
In its state budget bill, Missouri lawmakers proposed increasing funding for the Missouri Empowerment Scholarship Accounts program by $10 million, which would bring the tax-credit ESA program total to $60 million. The budget bill, HB 12, was delivered to Republican Gov. Mike Kehoe, who is expected to sign it.
Oklahoma Gov. Kevin Stitt, a Republican, signed legislation May 13 raising the cap on the state’s Parental Choice Tax Credit program from $250 million to $275 million. The legislation provides refundable tax credits of $5,000 to $7,000 per student to offset education expenses and expands resources for families seeking alternatives to public schools. Stitt said in a press release that the program has already helped nearly 40,000 students in 2026.
Eligibility expansions: Tennessee, South Dakota
Tennessee Gov. Bill Lee, a Republican, signed legislation May 7 increasing the enrollment cap for the state’s Education Freedom Scholarship program from 25,000 to 35,000 students. The change addressed waitlist demands, allowing more families to access funds for private school, homeschool, or other approved educational services.
South Dakota Republican Gov. Larry Rhoden signed a bill Feb. 6 that expands income eligibility for the Partners in Education Scholarship tax-credit program. The bill raises the family income eligibility threshold from 150% to 200% of the federal free- and reduced-price lunch line and increases maximum awards to cover up to the full state per-pupil amount, which is roughly $5,000 per student.
Implementation and adjustments: Texas, Idaho, Iowa, New Hampshire, Wyoming
Texas has begun funding through its $1 billion Education Freedom Accounts after more than 274,000 students applied. More than 95,000 eligible students received initial awards. Students with disabilities or lower-income families received priority.
>> More than 95,000 Texas students approved for first ESA awards in school choice program <<
Idaho reopened applications for its refundable parental choice tax credit after some applicants did not qualify or were not approved, leaving about $7 million available for distribution, according to EdChoice. Republican Gov. Brad Little signed a separate cleanup bill in April clarifying eligibility rules, permitting participation in public school extracurriculars, and expanding course options.
Iowa Gov. Kim Reynolds, a Republican, signed legislation May 12, updating the state’s ESA program by adding a December application window for mid-year enrollment and increasing state funding for charter schools.
In New Hampshire, lawmakers advanced a bill that would allow students in the state’s Education Freedom Account program to access public school curricular courses and extracurricular programs. The measure awaits action from Republican Gov. Kelly Ayotte.
Wyoming lawmakers introduced a backup ESA proposal in case its existing Steamboat Legacy Scholarship faced legal challenges. The new measure was defeated on the House floor, but it proved unnecessary after the Wyoming Supreme Court upheld the original program earlier this month.
Pushback and regulatory moves: South Carolina, Utah, West Virginia
Meanwhile, some states saw efforts to impose new limits on school choice.
In South Carolina, budget negotiations considered a proposal to exclude homeschoolers from the Education Scholarship Trust Fund program. The measure remains under debate in the conference committee and, if passed, would bar homeschool participation moving forward.
In Utah, Republican Gov. Spencer Cox signed legislation increasing state oversight of the ESA program and adjusting scholarship award amounts for students in online or virtual settings.
In West Virginia, school choice supporters avoided new restrictions after lawmakers withdrew a proposal that would have capped Hope Scholarship Program awards, limited school locations, and added testing requirements for certain participants, according to EdChoice.
Stalled efforts in several states: Mississippi, Louisiana, Minnesota, Kansas
Several school choice measures advanced in one chamber but ultimately stalled.
In Mississippi, the House passed a bill creating a robust new ESA program, but the Senate Education Committee killed it in February, EdChoice reported. The decision drew public pushback from Gov. Tate Reeves and House Speaker Jason White, both Republicans.
Louisiana’s House approved Republican Gov. Jeff Landry’s plan to double funding for its school choice program to $87.5 million, but the Senate Finance Committee stripped the increase from the budget.
Minnesota lawmakers held a hearing on a proposed ESA program but did not advance to a full floor debate, according to EdChoice.
In Kansas, Democratic Gov. Laura Kelly vetoed a bill that would have doubled the state’s tax-credit scholarship cap from $10 million to $20 million, and lawmakers did not secure enough votes for an override.
Federal tax credit participation
Twenty-nine states have formally opted into the new Federal Tax Credit for Scholarships program, which offers taxpayers a dollar-for-dollar tax credit of up to $1,700 for donations to nonprofit scholarship-granting organizations. Those groups can then award scholarships to help families cover education-related expenses, including private school tuition and homeschooling expenses. States must opt in for students to receive scholarships through the program.
According to Ballotpedia, 23 of the participating states are Republican trifectas: Alabama, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Louisiana, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia, and Wyoming.
The other states are Democratic-led or politically divided: Alaska, Colorado, Kansas, Kentucky, Nevada, and Virginia, according to Ballotpedia. Virginia’s participation, however, was announced under then-Republican Gov. Glenn Youngkin shortly before Democratic Gov. Abigail Spanberger took office in January.
North Carolina could also join the program if the state Senate completes a veto override of the Educational Choice for Children Act. The North Carolina House voted May 20 to override Democratic Gov. Josh Stein’s veto, and the measure now heads to the Senate, where Republicans hold a supermajority.
New York Gov. Kathy Hochul, a Democrat, said May 7 that her state plans to participate, a development that EdChoice predicted could encourage participation among other Democratic-led states.
Reflecting on school choice so far in 2026, EdChoice said it is “remarkable” to consider the number of states moving closer to “true educational freedom.”
“Undoubtedly, there is more to be done,” the group said, “but we remain committed to helping every family choose the best education for their kids.”