HB633 Alabama 2021 Session

Summary

Primary Sponsor

Charlotte Meadows

Republican

Co-Sponsor

Debbie Wood

Session

Regular Session 2021

Title

Education, Education Savings Account program, created, allow parents to use funds allocated to their child at their resident school district for an education program

Summary

HB633 creates Education Savings Accounts that let eligible Alabama students receive a portion of their public funds to pay for private schooling and other approved educational services chosen by parents.

What This Bill Does

Starting in 2021-2022, eligible students would receive a state grant into an education savings account to be used for approved education expenses such as private school tuition, textbooks, tutoring, curriculum, online programs, certain exams, and some postsecondary costs. The deposited amount equals about 95% of the student’s base district funding (with applicable weights) and must be used only for education; funds cannot be refunded or shared. The program expands parental choice beyond the local public school while adjusting the resident district’s state aid, and it imposes safeguards like background checks, audits, testing, and annual reporting to monitor quality and compliance.

Who It Affects

• Eligible students and their parents who may participate and receive ESA grants for approved educational expenses.
• Resident public school districts, which will see a deduction in state aid corresponding to the ESA grants and must provide student records when needed.
• Participating private schools, private tutors, online programs, and other education providers that may receive funds from ESAs and must meet safety, financial, and reporting requirements.
• Organizations administering the ESAs and private financial management firms, which must meet eligibility, oversight, and reporting rules and may receive administrative fees.

Key Provisions

• Creates the Education Savings Account program, starting with the 2021-2022 school year, for eligible students.
• Eligible students include children of active-duty or killed military members, students with an IEP or 504 plan, foster children, or students who attended a state primary/secondary school in the prior year.
• Participating parents sign an agreement to educate the student in core subjects, not enroll in a charter school or under the Alabama Accountability Act, and not enroll in public school except for contracted services.
• Qualifying expenses include private school tuition/fees, textbooks, licensed tutors, curriculum, approved online learning, certain exams, contributions to Coverdell or 529 accounts (up to $2,000 annually), disability-related services, and postsecondary costs; funds are restricted to educational use.
• The state deposits 95% of the calculated district amount (base plus weights) into the student’s ESA; funds are not taxable income to parents.
• Funds must be used for qualifying expenses, and refunds or sharing of funds with parents or students are prohibited.
• Private schools and providers must meet health, safety, nondiscrimination, and background check requirements; schools must provide receipts and demonstrate financial viability when large sums are involved.
• Annual testing (state or norm-referenced) in math and language arts is required, with results reported publicly after three years and used to assess learning gains; parental satisfaction surveys are also conducted.
• Participating private schools are autonomous and not considered state agents; the program does not expand state regulatory authority beyond enforcing program rules.
• The resident district must provide the participating school with a complete copy of the student’s records, within privacy laws, and enrollment data are used to adjust state funding.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

EducationEducation Department