Last verified: October 2026
How much is the CHOOSE Act ESA for a Birmingham private school student in 2026-27?
The CHOOSE Act education savings account is worth $7,000 a year for a student enrolled at a participating school, or the actual cost of qualifying expenses if that is less. The amount is flat: a K5 child in Homewood and a senior in Bessemer get the same figure.
Legally the money is a refundable Alabama income tax credit, but families never wait for a tax refund. The Alabama Department of Revenue (ALDOR) loads the credit into an account on ClassWallet, and deposits for 2026-27 began July 1, 2026.
Who qualified for 2026-27, and what changes for 2027-28?
For 2026-27, a family's 2025 adjusted gross income could not exceed 300% of the federal poverty level, which is $96,450 for a household of four. Starting with 2027-28, the income test disappears and any Alabama K5-12 family can apply.
Awards still follow a priority order when applications outrun money: the first 500 go to students with an IEP or Section 504 plan, then prior-year participants and their siblings, then dependents of active-duty service members assigned to a D- or F-graded public school, then families in order of income relative to poverty.
Which Jefferson and Shelby County schools can receive the $7,000?
Only schools on ALDOR's participating-school list can be paid tuition from the account. On the list dated October 23, 2026, 66 private schools in Jefferson and Shelby counties appear, and every one of them is flagged on this site.
A participating private school must be accredited, or in the process of accreditation, by a body the law names: a regional accreditor, the National Council for Private School Accreditation, Cognia, the American Association of Christian Schools, the Alabama Christian Education Association, the Alabama Independent School Association, or one of their partners. Its funded students also take a standardized, norm-referenced or aptitude test each year.
How does the money actually reach the school?
The school invoices through ClassWallet and the parent approves payment from the student's account; families are not reimbursed for out-of-pocket spending. The school chooses its own billing rhythm (weekly, monthly or quarterly are all allowed), and approved payments settle in two to ten business days.
Before the account can be used, the parent accepts an affidavit for each child inside ClassWallet. Until it is accepted, the balance shows as zero.
What happens to money left over at the end of the year?
Unspent ESA money does not roll over: whatever is in the account on June 30 returns to the CHOOSE Act Fund. If tuition is under $7,000, the remainder can go to textbooks, tutoring, approved technology or other listed expenses during the same school year.
Can a Birmingham family combine the ESA with an Accountability Act scholarship?
No. The CHOOSE Act excludes any student who is receiving a scholarship under the Alabama Accountability Act of 2013, so a family picks one or the other for each child. School-based aid, parish pricing and private funds can still sit on top of the ESA.
What the CHOOSE Act ESA is, and what it isn't
| It is | It isn't |
|---|---|
| A $7,000 account per enrolled student, spent through ClassWallet | A check or tax refund paid to the family |
| Open to every Alabama K5-12 family from 2027-28 | Limited to students leaving a failing public school |
| Usable only at schools on ALDOR's participating list | Good at any private school in Jefferson or Shelby County |
| Spent within one school year (July 1 to June 30) | A balance that grows year to year |