TL;DR: For 2026-27, 48,927 Alabama students applied for a CHOOSE Act education savings account and more than 34,000 were approved, worth over $174 million. For 2027-28 the 300%-of-poverty income test ends and any family can apply starting in January 2027. The priority order stays, so families new to the program should apply early and complete.
How many families applied for the CHOOSE Act this year?
When the 2026-27 window closed at midnight on March 31, 2026, ALDOR had 29,341 applications covering 48,927 students, according to Alabama Daily News. That is up from about 37,000 students in the program's first year. The Governor's office announced on July 1 that more than 34,000 students were approved, with over $174 million in ESAs.
| Measure | 2025-26 (first year) | 2026-27 |
|---|---|---|
| Students applying | 36,873 | 48,927 |
| Students awarded or approved | About 23,000 | More than 34,000 |
| ESA value | About $100 million expected | Over $174 million |
| Income test | 300% of poverty | 300% of poverty |
Of the 2026-27 applicants, 18,941 students were renewals and 29,986 were new. By school background, 21,351 came from private schools, 13,425 from homeschooling and 8,961 from public or charter schools. Statewide figures are all that has been published; neither ALDOR nor the press has released county counts for Jefferson or Shelby.
What exactly changes for 2027-28?
The income test goes away. The CHOOSE Act limits the credit to families at or under 300% of the federal poverty level only for tax years beginning January 1, 2025 and January 1, 2026; for years beginning on or after January 1, 2027, the credit is available to any parent of an eligible student. For a Birmingham household of four, that removes the $96,450 ceiling that applied to 2025 income in the 2026-27 cycle.
The amounts in current law stay where they are: $7,000 for a student at a participating school and $2,000 per home-educated student, up to $4,000 per family.
Who gets funded first if money runs short?
ALDOR's published order for the second year, which it says carries into year three, is: the first 500 awards for students with special needs; then students awarded the year before; then dependents of active-duty service members enrolled in or assigned to a priority school (a public school graded D or F); then everyone else ranked by adjusted gross income as a percentage of poverty. Siblings of participating students also get priority. In 2026-27, 5,115 applicants were students with special needs and 1,121 were military families from priority school districts.
The practical meaning for a higher-income Birmingham family applying for the first time is that eligibility is no longer the question; place in line is. Alabama Daily News estimated that funding every 2026-27 applicant would have cost $208 million to $275 million, depending on how students used the money, so demand and funding levels both matter.
What does this mean for a family already paying private tuition?
It may be the first year you can apply at all. In the 2026-27 cycle, 21,351 applicants were already in private school, and many Birmingham families paying tuition today were above the old income line. For 2027-28, a family with a child at a participating school can apply on the same terms as anyone else and, if awarded, have $7,000 applied against tuition and approved fees through ClassWallet.
Two cautions. First, a student who currently holds an Accountability Act scholarship has to choose between keeping it and applying for the ESA. Second, the money is tied to the school year: it arrives starting July 1 and anything unspent on June 30 returns to the state, so it is a tuition tool, not savings.
No income cap vs guaranteed award
"Open to all families" is not the same as "every family gets $7,000." It means no one is screened out by income. Awards still depend on what ALDOR has to distribute and on the priority order above, and a student must still be enrolled at a participating school (for the $7,000 tier) or be home-educated (for the $2,000 tier). A student holding an Alabama Accountability Act scholarship remains ineligible. If you are weighing those two, read our side-by-side comparison.
What should a Birmingham family have ready before January?
Decide between a participating school and home education, and confirm the school is on ALDOR's participating list. Gather proof of Alabama residency, your recent tax information, and any IEP, Section 504 plan or military orders that put your child in a priority group. If you already have a 2026-27 award, watch for the renewal portal: last cycle it opened on December 15, two and a half weeks before new families. ALDOR has said only "January 2027" for 2027-28, so check the deadline page as dates are posted.
Frequently asked questions
How many families applied for the CHOOSE Act this year?
29,341 applications covering 48,927 students were filed for 2026-27, and more than 34,000 students were approved for over $174 million in ESAs.
What exactly changes for 2027-28?
The 300%-of-poverty income test ends, so any Alabama K5-12 family can apply; the $7,000 and $2,000 amounts in current law do not change.
Who gets funded first if money runs short?
Special-needs students (first 500 awards), prior-year participants and siblings, active-duty military dependents at D- or F-graded schools, then families ranked by income relative to poverty.
What should a Birmingham family have ready before January?
A school choice that is on the participating list, proof of residency, tax information, and any IEP, 504 or military documents.
What does this mean for a family already paying private tuition?
Families above the old income line can apply for 2027-28 on the same terms as everyone else, but must give up an Accountability Act scholarship to take an ESA.
Related questions
- Is there an income limit for 2027-28?
- Was I under the 2026-27 line?
- How does the $7,000 ESA reach the school?
- How does the special-needs priority work?
Sources
- Alabama Daily News, CHOOSE Act draws record 49,000 student applications
- Office of the Governor, CHOOSE Act funding for 2026-2027 (July 1, 2026)
- ALDOR, The CHOOSE Act
- CHOOSE Act, Act 2024-21 (HB129)
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