The Alabama Legislature struck a major blow against public education this session by passing the CHOOSE Act. This law likely will drain hundreds of millions of dollars annually from public schools that have long struggled with underfunding. Alabama Arise testified twice against the bill, but conservative lawmakers moved quickly to enact it.

The act – HB 129 by Rep. Danny Garrett, R-Trussville – will divert at least $100 million every year from Alabama’s public schools. The law creates “education savings accounts” for parents to pay for private school or homeschooling.

In 2025 and 2026, only families with incomes at or below 300% of the federal poverty level will be eligible. But starting in 2027, the accounts will be available to all parents, no matter how wealthy the participating families are, and regardless of whether their children have ever attended public schools.

Begins next year

Beginning Jan. 1, 2025, Alabama will establish annual refundable tax credits of up to $7,000 per child for children enrolled in private schools and of up to $2,000 per child for children who are homeschooled. A refundable tax credit means parents whose children attend private school or who are homeschooled could receive more in private school vouchers than they pay in income taxes.

The bill establishes a CHOOSE Act Fund, which can accumulate as much as $500 million for private schools and homeschooling. That money otherwise would fund public education. Schools receiving these funds would have to meet licensure and testing requirements but would not have to use the same standardized tests that public schools do.

Looser requirements for participating schools

Participating schools are required not to discriminate on the basis of race, color or national origin. But the new law does not explicitly forbid discrimination on the basis of gender or gender identity. Participating schools also do not have to conform to admission or hiring policies, meaning they can deny admission to children with special needs and can hire uncertified teachers. Participating schools also are allowed to impose religious practices and criteria.

Voucher programs like the CHOOSE Act have been accompanied by steep declines in public school spending in multiple states, the Economic Policy Institute (EPI) found. These programs also have not improved educational outcomes, even for students enrolled in private schools, EPI found. EPI researchers concluded that “the only reason for this policy thrust is ideology rooted in hostility to public education.”