As the first state to pass an education savings account (ESA) bill in 2025, Tennessee is leading the nation in setting up more education options for the 2025-2026 school year.
School choice in Tennessee includes traditional public schools, public charter schools, public magnet schools, private schools, online learning, and homeschooling. For the past few years, some Tennesseeans had access to two private school choice programs that fund private K-12 education for eligible families: the Tennessee ESA program and the Individualized Education Account program. The Tennessee ESA program has eligibility requirements based on residency, school attendance, and household income. In order to participate in the Individualized Education Account program students must have an IEP.
What makes the program created by the Tennessee Education Freedom Act different is that this new, all-encompassing program is open to any student in the state that wants to attend a private school. That means all K-12 students in the state of Tennessee are eligible!
What is the Tennessee Education Freedom Act?
The Tennessee Education Freedom Act passed establishing an education savings account, or ESA program. Like a scholarship, an ESA provides funding for a student’s K-12 education. What makes an ESA unique is flexibility – ESA funds can be applied not just to private school tuition but other costs such as tutoring fees, college placement exams, transportation, therapies, and more. Tennessee’s new ESA, and other ESAs around the country, are designed to give parents more options for personalizing their child’s education.
The Tennessee Education Freedom Scholarship (ESF) Program will be the state’s first education savings account program that is available to all students in the state. This new ESA will provide up to $7,300 per student each year for eligible educational expenses. In the first year alone, this program will give 20,000 students more education opportunities!
To assist Tennessee parents and guardians with accessing this program, the Tennessee Department of Education created a Family Handbook with everything you need to know.
Who is eligible for the Tennessee Education Freedom Account (EFS) program?
Similar to ESA programs in states like Arizona and Utah, the Tennessee EFS program will be universally available, meaning that all students in Tennessee entitled to attend a public school are eligible to apply for the program.
For the 2025-2026 school year there are 20,000 scholarships available. The first 10,000 scholarships are considered Qualified Scholarships and are available for:
- Students with household incomes under 300% of the federal free-and-reduced-lunch guidelines
- Students who are already eligible for one of the state’s other school choice programs* (the Tennessee ESA or the Individualized Education Account program)
- Students with disabilities
The remaining 10,000 Universal Scholarships are open to any student who is a resident of Tennessee and in grades K-12, regardless of their income.
Tennessee’s EFS Application Checklist breaks down who is eligible and what documentation is required to apply for either a Qualified or Universal Scholarship.
After the 2025-2026 school year the number of available scholarships will increase yearly based on the previous year’s demand and funding availability.
*While eligibility criteria for the EFS Qualified Scholarship includes eligibility for Tennessee’s other school choice programs, it should be noted that they cannot participate in more than one program per year.
Are homeschoolers eligible to participate?
All families are welcome to apply for the EFS, however, in order to receive funds the student must enroll in a non-public school which is approved to participate in the EFS. ESF Funds cannot be used for homeschool expenses.
A list of registered non-public schools can be found on the EFS webpage.
How will parents apply and access funds?
Applications for the Tennessee Education Freedom Account program will be processed through an online portal. There are two methods that can be used to apply:
- Online (preferred method): The EFS webpage has an online portal for submitting applications. Users will need to use a valid email address to create an account and upload required documentation.
- Paper: A paper version of the application is also available on the website in English, Chinese, Arabic, or Spanish. You can also request a paper copy via email ([email protected]) or in person or at the Tennessee Department of Education office in Nashville. Once completed, applications can be submitted in person or by mail.*
*Note that applications are processed in the order they are received by the online application system. If you choose to use a paper application they will be entered into the system on the same business day they are received.
The Tennessee Department of Education created a Step-By-Step Guide to walk you through the process.
Once approved, the funds will be managed through the online portal. The portal will make payments directly to schools and will house an online Marketplace where other approved purchases can be made.
When does the program begin?
The Tennessee Education Freedom Account program begins for the 2025-2026 school year! The application window closed June 13, 2025, stay tuned to the ESF website for next year’s application information.
What are eligible education expenses for the Tennessee Education Freedom Account?
There are eight categories of approved educational expenses that families can spend their ESF funds on. They are:
- Tuition, fees, textbooks, and uniforms at one of the approved non-public schools
- Tuition and fees for approved educational summer education programs and specialized after-school academic programs (note that funds cannot be used for after-school or summer childcare programs)
- Tutoring services provided by a tutor or tutoring facility that meets program requirements
- Fees for transportation to and from your chosen private school by a fee-for-service transportation provider (this does not include private transportation by parents, family members, or students)
- Fees for early postsecondary opportunities such as courses, exams, college entrance exams, and CTE certifications
- Educational therapies or services provided by a department-approved licensed therapist
- Computer hardware, technological devices, or other department-approved technology fees
- Other expenses as authorized
Any funds that are not used during the school year will stay in your account and can be used for future educational expenses as long as the student remains eligible and participating in the program.
Are there any special requirements?
Students participating in the EFS program are required to participate in annual assessments. Approved private schools receiving EFS funds must administer either a nationally standardized achievement test or the Tennessee Comprehensive Assessment Program (TCAP) tests in math and English language arts for students in grades 3-11.
Next Steps for Parents:
You don’t need to wait for application approval to begin preparing for participation in the program! Here are some steps you can take now:
- Apply for the Tennessee Education Freedom Scholarship. Ensure that you meet all requirements (including residency, age of the beneficiary, income restrictions, etc.), gather supporting documentation, and register for the portal. Once you have everything you need uploaded, submit your application.
- Find approved schools and providers near you. Good news – we’re partnering with the Beacon Center to make it even easier to identify which schools are near you! You’ll find our Schools Near Me Tool on their website, along with easy to understand information about the program. After entering your zip code the tool will give you a list of schools in your area, and then you can compare it to the approved list on the EFS website!
- Estimate your child’s future education expenses, considering factors such as tuition, fees, books, supplies, and other related costs.
- Stay informed about any updates or announcements regarding the status of your application by subscribing to newsletters, following relevant government agencies or organizations on social media, and regularly checking official websites for updates.
Other school choice options in Tennessee
Families in Tennessee have various school choice options available to them. Firstly, students with special needs may be eligible for a publicly funded Individualized Education Account. Additionally, low-income and middle-income students who are zoned to attend a district-run school in Shelby County, Hamilton County, or Metro Nashville may qualify for a state-funded education savings account, which can be used to enroll in an approved private school of their choice.
What sets these school choice options apart from the Education Freedom Scholarship Account program is that the new program will be universally available.
It’s worth noting that while students may be eligible for multiple programs, they may only participate in one at a time.
In addition to private school choice options, many Tennessee families have a range of educational choices, including traditional public schools, public charter schools, public magnet schools, online learning, homeschooling, microschooling and mix-and-match learning.
To learn more about all the educations available in Tennessee, visit the Tennessee State Roadmap.
Where to learn more
Over 900,000 students nationwide use school choice programs to personalize their education. As Tennessee’s new scholarship program is established, we expect to receive more details. Stay tuned for further updates!
If you’d like to learn more, you can keep an eye out for updates at Tennessee’s Education Freedom and Tennessee’s Department of Education.
