MONTGOMERY — Governor Kay Ivey signed the CHOOSE Act, a $100 million educational savings account bill, into law on Thursday morning.

The law will allow the Department of Revenue to manage the education savings accounts (ESAs) for approved students. The ESA would be funded through a refundable income tax credit available to eligible parents. The individual credit would be $7,000 for students in participating schools, while non-participating school students — such as homeschooled students — are $2,000 per student and $4,000 per family.

Under the bill, the legislature must appropriate not less than $100 million to the program's fund, beginning with appropriations made for the fiscal year ending Sept. 30, 2026, and continuing annually after that. 

“Alabama is only the 14th state in the nation to provide families with an education savings account option. Our plan will not only work for Alabama families – it will work for the state and will be effective and sustainable for generations to come. With the CHOOSE Act, Alabama will now be a leader when it comes to school choice. And I am hopeful that this will make a difference for Alabama families. Let me also be clear that my commitment to public education remains unrelenting. At the end of the day, we all want every Alabama student – no matter the zip code, no matter the school, to receive a quality education. Strong students will lead to a strong Alabama, and a strong Alabama is our goal,” Ivey said at the bill signing on Thursday.

To connect with the author of this story or to comment, email

Don't miss out! Subscribe to our newsletter and get our top stories every weekday morning.