The SCHOOL Act of 2025 mandates that federal education funding under ESEA and IDEA must follow the student, providing funds directly to families via Education Savings Accounts for those in private schools or homeschooled.
Chip Roy
Representative
TX-21
The SCHOOL Act of 2025 mandates that federal education funding, including Title I through VI of ESEA and IDEA funds, must "follow the student" regardless of whether they attend public, private, or are homeschooled. This is achieved by distributing funds directly to families via Education Savings Accounts (ESAs) for private and home instruction, while public schools receive funding based on their eligible enrollment. The bill ensures these federal funds supplement, rather than replace, existing non-federal spending for educational needs and special education services.
SCHOOL Act Forces Federal Education Funds to ‘Follow the Student’ via ESAs, Shaking Up Public School Budgets
The Support Children Having Open Opportunities for Learning Act of 2025 (the SCHOOL Act) is poised to fundamentally rewrite the rules for federal education funding. Simply put, this bill mandates that federal dollars from major programs—specifically Title I funds meant for low-income schools, and critical special education funding under the Individuals with Disabilities Education Act (IDEA)—must now “follow the student,” regardless of whether that student attends a public school, a private school, or is homeschooled.
The New Math: How Federal Dollars Get Split
Under this bill (SEC. 2 and SEC. 3), state education agencies can no longer just send these federal grants straight to public school districts. Instead, they must calculate an equal share for every eligible child (ages 5 to 17) in the state. If the child is in a public school, the money still goes through the traditional channels. But if the child is in a private school or homeschooled, the state must deposit that federal share directly into an Education Savings Account (ESA) accessible by the family. This is a massive shift, moving funding authority away from local school districts and directly into the hands of families using private options.
What an ESA Means for Your Wallet
If your child qualifies for an ESA under this act, the funds can be used for a wide range of educational expenses. Think private school tuition, curriculum materials, technology, tutoring outside the home, testing fees, and even educational therapies for students with disabilities. Crucially, the bill requires these federal funds to supplement—meaning add to—what the family or school is already spending, preventing them from simply replacing existing non-federal money. This gives families who choose private or home education access to federal dollars previously earmarked almost exclusively for the public system.
The IDEA Shift: Special Education Funding Goes Mobile
The SCHOOL Act specifically targets IDEA funding, which is the federal lifeline for special education services (SEC. 3). Currently, this money primarily flows to public school districts to support students with disabilities. Under this new structure, that funding also follows the student via an ESA if the child is in a private school or homeschooled. For a parent of a child with special needs, this could mean finally being able to afford specialized therapy or tutoring that a public school couldn't provide, or paying for a private school that offers a specific program tailored to their child’s needs. The bill explicitly states that a child’s eligibility for this special education funding does not affect their ability to receive free or reduced-price school lunch.
The Public School Pinch and the Data Requirement
While the bill increases choice for some, it creates a significant administrative and financial headache for others. Public school districts, which educate the vast majority of students, will see their federal funding allocations reduced as money is diverted into ESAs for private and home school students. This is a high-stakes change, especially for districts that rely heavily on Title I funding to support their most vulnerable students. Furthermore, to make this system work, parents must annually inform their local education agency (LEA) exactly where their child is enrolled—public, private, or home. While the bill states this data is only for funding distribution, this mandatory reporting requirement adds a layer of oversight and bureaucracy that could feel intrusive to families and burdensome to LEAs.
The Catch: No Federal Control, But Who’s Watching the Money?
One key provision (SEC. 2 and SEC. 3) explicitly prohibits the federal or state government from using this funding change to impose control over the operations of private schools or homeschool programs. This is a win for autonomy, but it raises questions about oversight: if federal tax dollars are flowing directly into thousands of individual ESAs, who ensures the money is spent strictly on allowable educational expenses? While the bill lists specific uses, the administrative burden of tracking and auditing these accounts will fall to the state, adding a complex layer of financial management that doesn't currently exist.