Alabama CHOOSE Act and Online School: Eligibility, Amounts, Dates and How Payment Works

Quick answer: The CHOOSE Act in Alabama is a state education savings account (ESA) that pays up to $7,000 a year for a student at a participating school, or up to $2,000 for a student in a home education program, with a $4,000 cap per family. Online private schools based outside Alabama appear on the state’s education service provider list, not its participating school list. That points to the $2,000 amount for an online school student, but the state pages I read do not say so in plain words, so confirm it before you budget.

This guide explains how the Alabama CHOOSE Act works for a family weighing an online private school: who qualifies, what it pays, when to apply, what “participating school” and “education service provider” mean, and how money moves from the state to a school. Every rule below comes from the Alabama Department of Revenue (ALDOR), its program documents or Alabama law, which I read on October 10, 2026. For the wider picture across states, see our hub on school choice, ESAs and vouchers for online school.

Who qualifies for the Alabama CHOOSE Act?

The program is run by ALDOR. The ALDOR CHOOSE Act page, the 2026-27 Parent Guide (updated July 27, 2026) and the law set these rules:

• Age and grade. The student is in grades K5 to 12 and lives in Alabama. By law an eligible student is 5 to 19 years old and has not graduated from high school, or is 5 to 21 and qualifies for services under IDEA or Section 504. A kindergartner must turn 5 by September 1, 2026 for the 2026-27 year.
• Residency. The student must be an Alabama resident, and the application needs proof of address.
• Income, 2026-27 only. Household income cannot exceed 300% of the federal poverty level for the 2025 tax year (table below).
• Income, 2027-28 and later. ALDOR says there is no longer a household income requirement. The law (Act 2024-21) says the credit is available to any parent of an eligible student for years beginning on or after January 1, 2027.
• Scholarships. A student who receives a scholarship or tax credit under the Alabama Accountability Act of 2013 is not eligible.
• Public school. The parent agrees not to claim the credit for a student enrolled full time in a public school district, unless that school is a participating school that charges tuition.

For households larger than eight, the Parent Guide adds $16,500 for each extra person.

When there are more applicants than money, ALDOR awards accounts in a set order. For 2026-27, the first 500 accounts go to students with special needs. After that come students who received an award the year before, then dependents of active-duty service members who are enrolled in or assigned to a priority school, then everyone else by family income as a share of the poverty level. The law also gives siblings of participating students priority, so a family that receives one award receives awards for its other eligible children.

How much does the CHOOSE Act pay?

The amount depends on the kind of school or program the student uses. The law sets each amount as a ceiling: $7,000 or the actual cost of qualifying expenses, whichever is less, for a student in a participating school, and $2,000 or actual cost for a student who is not.

With several children in home education, each child’s account shows at most $2,000, and the family total stops at $4,000. ALDOR’s definition of a participating student includes a homeschool student even if the student is enrolled in a church school, homeschool co-op or similar group, as long as the student is eligible.

ALDOR’s pages do not list a third row for a private online school based in another state. The next two sections show why that row is not obvious, and what the documents say.

When do you apply for the Alabama CHOOSE Act?

The 2026-27 application period has closed. ALDOR’s 2026-27 family timeline (updated July 1, 2026) shows how a full cycle runs, and the next cycle may use different dates.

For 2027-28, the Governor’s December 3, 2025 announcement says the program is open to all families regardless of income, and the Parent Guide says renewal details will come in early 2027. I found no published 2027-28 application dates on October 10, 2026. Watch chooseact.alabama.gov for them.

Participating school or education service provider: what is the difference?

This is the part most CHOOSE Act guides skip, and it decides which amount a family receives.

An education service provider (ESP) is any school, organization, vendor or individual, other than the parent, that ALDOR approves to provide education goods and services. That covers tutors, therapists, curriculum sellers, online course providers and schools. A participating school is a narrower group. Under the ALDOR definitions rule, it is “a state of Alabama education service provider” that is an accredited public K-12 school or accredited private school, approved by ALDOR. It must be accredited, or in the process of becoming accredited, by one of the listed agencies, including the National Council for Private School Accreditation and Cognia. The Parent Guide says an accredited public or private K5-12 Alabama school can become an ESP by meeting the requirements to become a participating school.

The Alabama Administrative Code, Chapter 810-28-1 (effective January 11, 2025) adds what a participating school must do. It must:

• Follow health, safety and child protection laws
• Hold an occupancy permit where a city requires one
• Show its accreditation and give ALDOR its grades, calendar and tuition and fee schedule
• Provide financial statements or a surety bond
• Give participating students an annual standardized assessment and report school-level results
• Tell ALDOR when a participating student graduates or withdraws

Any ESP, including a participating school, also agrees to document amounts received, keep student records private under FERPA, and not refund or share program funds with a parent.

ALDOR publishes two lists. The participating schools list shows Alabama cities. The education service provider list, dated October 2, 2026 when I read it, has a category called “K-12 Private School (Online).” Its entries show cities in states such as California, Florida, Utah and Virginia, as well as some in Alabama. An out-of-state online school therefore sits in the ESP group.

Can you use the CHOOSE Act for an online private school?

Yes, an online school can receive CHOOSE Act money if ALDOR has approved it as an education service provider. Three pieces of ALDOR’s documents explain how.

• The law and the rules list “tuition and fees for nonpublic online learning programs” as a qualifying expense, separate from “tuition and fees at a participating school.”
• The Parent Guide’s payment screen has two separate categories: “Tuition and fees at a participating school” and “Tuition and fees for an approved nonpublic K5-12 online learning program.” The online category covers classes and courses in art, English language arts, foreign languages, math, music, religion, science and social studies, plus test preparation.
• The $7,000 amount in the law is for a student “enrolled in a participating school,” and a participating school is an Alabama school.

Put together, an out-of-state online school looks like an ESP paid under the online learning category, and the student looks like a student who is “not enrolled in a participating school,” which is the $2,000 group with the $4,000 family cap. I did not find a sentence in ALDOR’s pages that states this for online schools, and the law also says a child enrolled in a private school that is not a participating school is not an eligible student. ALDOR lists online private schools as providers, so the program clearly pays them, but ask ALDOR or ClassWallet support (877-313-2125, help@classwallet.com) which amount applies before you plan around $7,000.

How the payment flow works

All CHOOSE Act spending goes through ClassWallet, the digital wallet ALDOR contracted to coordinate the funds. Families cannot withdraw cash or be reimbursed. The ESP guide for 2026-27 and the Parent Guide describe these steps:

1. Apply and be approved. ALDOR approves the family’s application, and ClassWallet creates one wallet for each student and emails instructions.
2. Accept the affidavit. Each student’s wallet shows a $0 balance until the parent accepts the CHOOSE Act affidavit for that student, which is available once the account is funded.
3. Ask the school for an invoice. A standard typed invoice must show the provider’s name and address, the student’s name, the parent’s name, the invoice date, the dates of service, the type of service and the total due. Handwritten invoices are rejected. The ESP guide says an invoice may not mention the CHOOSE Act, the program fund or ClassWallet.
4. Pay through ClassWallet. The parent uses “Pay Vendor,” attaches the invoice and picks the expense category.
5. ALDOR reviews it. If an invoice contains an ineligible expense, the whole invoice is rejected and the money goes straight back to the student’s account.
6. The school receives the payment. The money goes from ClassWallet to the school. How often the school bills (weekly, monthly or quarterly) is the school’s choice.
7. The family pays any balance. By law, the parent takes full financial responsibility for any cost above the account balance.

Payment can come before or after the service, but only invoices for services in the academic year (July 1 to June 30) are approved. Money left on June 30 returns to the CHOOSE Act Fund. If a student leaves the program, any unused funds go back as well.

Worked example

These are made-up prices to show the math, not any school’s tuition.

The online rows use the $2,000 amount because that is where the documents point. If ALDOR confirms a different amount for your school, replace it and the math follows the same pattern.

Questions to ask before you apply

• Is the school on ALDOR’s current education service provider list, and under what name and category?
• Which amount does ALDOR apply to a student at this school, $7,000 or $2,000?
• What is the full-year tuition and every fee, in writing, and which of them does ALDOR treat as qualifying?
• Will the school send a standard invoice that meets ClassWallet’s rules, and on what billing schedule?
• Does a participating school’s testing rule apply to my child, and if so, how does an Alabama student take the test?
• When does the school take new enrollments, and does the account have to be funded first?
• What happens to the account if we move out of Alabama or change schools?

Where Forest Trail Academy fits

Forest Trail Academy (FTA) is a private, accredited, secular online K-12 school in West Palm Beach, Florida. Courses are self-paced, taught by certified teachers, and enrollment is open any week of the year. FTA’s Alabama page says Alabama families may have education funding options through the CHOOSE Act education savings account program and that eligibility and approved uses depend on the program rules. FTA’s voucher program page lists Alabama among the states whose ESA funding it accepts, says guidelines vary by state and tells families to contact admissions to confirm how their state program applies. That page does not name the CHOOSE Act. Ask admissions how a CHOOSE Act payment works for your student, and see the tuition page for current prices.

Frequently asked questions

What is the CHOOSE Act in Alabama?

It is a state program, run by the Alabama Department of Revenue, that gives eligible K5-12 students an education savings account. Parents pay approved schools, tutors, therapists and other providers from it through ClassWallet.

How much is the CHOOSE Act in Alabama?

Up to $7,000 per student enrolled in a participating school, and up to $2,000 per student in a home education program, capped at $4,000 per family.

Who qualifies for the Alabama CHOOSE Act?

Alabama students in grades K5 to 12. For 2026-27, household income also had to be at or below 300% of the federal poverty level. ALDOR says that requirement ends for 2027-28.

Can I use the Alabama CHOOSE Act for online school?

Yes, with a school or program that ALDOR has approved as an education service provider. Check the provider list, and ask which amount applies to an out-of-state online school.

Is the CHOOSE Act application open?

The 2026-27 application closed on March 31, 2026. ALDOR had not posted 2027-28 dates when I read its pages on October 10, 2026.

Can homeschool families use the CHOOSE Act?

Yes. A homeschool student, including one in a co-op, is a participating student, and the home education amount is up to $2,000 per student with a $4,000 family cap.

Does the money go to the family or the school?

It goes to the school or provider. Families pay through ClassWallet, and there is no cash payment or reimbursement to the family.

What happens to unused CHOOSE Act money?

Funds left on June 30 return to the CHOOSE Act Fund.

Related guides: school choice, ESAs and vouchers for online school, public and private online K-12 school programs, accredited and non-accredited homeschooling, and online school in Birmingham, Alabama.

Book a call with admissions to ask how your Alabama CHOOSE Act account can be used for Forest Trail Academy tuition.