South Carolina has reimagined its Education Scholarship Trust Fund!
If the name Education Scholarship Trust Fund sounds familiar, it’s because the state passed an identically named program in 2023. When applications opened in early 2024, nearly 8,000 families applied for just 5,000 scholarships. That version of the program was struck down by the South Carolina Supreme Court later that same year. In May 2025, the legislature passed, and Governor Henry McMaster signed, a new bill modifying the program and restarting it for the 2025-2026 school year.
When is this new scholarship available, and who can apply?
Launching for the 2025-2026 school year, this $7,500 scholarship will expand over time. For the 2025-26 school year, it will be available to 10,000 low-income students (students whose household income doesn’t exceed 300% of the federal poverty guidelines). Participating students can use their scholarship account for approved expenses, such as tutoring, technology, or even costs attached to attending a public school outside of their resident district.
The scholarship program will grow in 2026-27 to become available to up to 15,000 students whose families make up to five times the federal poverty level. Students will be prioritized for the scholarship if they:
- Received the scholarship the previous academic year
- Are the sibling of a scholarship recipient
- Have an active-duty parent or guardian whose duty station is in South Carolina
- Have a household income that does not exceed 300% of the federal poverty level
- Attended a public school in the previous academic year
Once the priority application windows have closed the general application window will open, making 85% of children in South Carolina eligible for the program!
Not sure that this program is the right fit for you? Visit the South Carolina State Roadmap to see all the options available for South Carolina families.
How are the South Carolina education scholarship funds delivered to families?
This scholarship is an education savings account program which will be overseen and executed by a state-appointed trustee with a background in administering trusts. The trustee will be responsible for taking the scholarship money and depositing it into an Education Scholarship Trust Fund (ESTF) account for each scholarship recipient that families can access through a secure portal.
Since the scholarship funds are made available directly to families rather than routed straight to a school they attend, families have flexibility and ownership over their education funds and choices about how to use them.
If a family doesn’t use all the funds in their account in a given school year, the funds roll over to the following school year, as long as the student remains active in the program.
What learning expenses can the education scholarship be used for?
The Education Scholarship Trust Fund program would allocate funding to eligible students to use for approved education-related expenses, including:
- Tuition and fees for attendance at an education service provider, eligible school, or approved online education program*
- Instructional materials such as textbooks, curriculum, or supplemental materials
- Tutoring services approved by the Department of Education
- Computer hardware or other technological devices
- Fees for advanced placement exams, college entrance exams, or industry certifications
- Occupational, behavioral, physical, and speech-language therapies for students with disabilities
- Transportation fees
The Department of Education will publish a comprehensive list of approved education service providers, including name, address, phone number, and website, on its website.
*Education service providers and eligible schools, such as private schools, are required to apply for participation in the program. Eligibility requirements have not been fully listed out, but include criteria such as being located in the state of South Carolina and having an educational curriculum that meets the state’s diploma and compulsory attendance requirements.
What are the details on applying?
Here are some of the specifics a participating parent must agree to:
The family must agree to use the program funds for approved expenses only.
They must ensure their student takes required assessments.
They must not participate in a home instruction program or enroll full-time in a public school in the resident school district while receiving the scholarship.
Note that a family can’t use the scholarship for homeschooling. But, they may use the scholarship to attend an approved online private school.
Are there any state testing requirements?
Yes – all education service providers that are approved to participate in the program must document academic progress annually for each student receiving the scholarship. There are several ways that they can do this.
For scholarship students in grades 3-8, they can do either of the following:
- Test students using the South Carolina State Assessments required by public schools:
- SC Ready or SC Ready Alternative Summative Assessment (Grades 3-8)
- SC Pass or SC Pass Alternative Summative Assessment (Grades 4 and 6)
- Test students using a nationally norm-referenced formative assessment approved by the Department of Education three times per year (Grades 3-8):
- Beginning of the School Year
- End of the 1st Semester
- End of the School Year
High schoolers (Grades 9-12) are required to take a nationally norm-referenced or formative assessment approved by the Department of Education.
Students with an Individualized Education Plan (IEP) that cannot be accommodated with standardized testing are excluded from the assessment requirements.
Are homeschoolers eligible to participate?
Families cannot use this scholarship for homeschooling, but they can use it to attend an approved online private school.
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How does the ESA work with interdistrict transfer (open enrollment in a different public school district)?
The Education Trust Fund Scholarship provides for open enrollment options in public schools in other districts if the student meets eligibility requirements for the scholarship. This means that they can use the scholarship to pay for fees associated with interdistrict transfers.
For students who choose to utilize open enrollment to attend a public school other than their zoned school, districts are not required to provide transportation.
The state will soon provide an example of the types of rules school districts should make around interdistrict transfers to make it easier for parents to make this kind of choice. Going forward, each school district in the state will have to post their policies about transferring to their schools on their websites and update the information at least once a year.
What else you should know
While this is South Carolina’s first education savings account, the state also offers two other programs to support families who choose private school for their children with special needs: a tax-credit scholarship and a refundable tax credit.
If you live in South Carolina and have questions, reach out to the Palmetto Promise Institute.
