SCHOOL Act Proposes Federal Education Funds Follow Students to Public, Private, or Home Schools via Savings Accounts

The SCHOOL Act of 2025 aims to change how federal education dollars are distributed. Under this proposal, certain federal funds from the Elementary and Secondary Education Act (ESEA titles I, III, IV, V, VI) and the Individuals with Disabilities Education Act (IDEA) would be tied directly to eligible students aged 5-17, regardless of whether they attend a public school, private school, or are homeschooled.

Follow the Money: How School Funding Could Shift

This bill amends two major education laws (ESEA and IDEA) to make federal funding portable. Here's the breakdown: If a child attends a public school, the local school district (local educational agency or LEA) would receive the federal funds associated with that student, similar to current systems. However, if a parent chooses a private school or homeschooling for their eligible child, the federal funds allocated for that student would instead go into an Education Savings Account (ESA) managed by the parent. States would need to set up a system for parents to annually declare their chosen schooling option (public, private, or home) to their local school district, which then reports these numbers to the state for fund distribution.

Unpacking the Education Savings Account

For families opting out of public schools, the ESAs offer flexibility. The bill specifies that these funds can cover a range of educational expenses. Think private school tuition, fees for specific classes or extracurriculars, curriculum and textbooks, educational software and technology, online learning programs, and standardized test fees. The funds could also pay for tutoring services or specialized educational therapies for students with disabilities, as defined under IDEA. For instance, a parent could use ESA funds to pay for specialized reading intervention tutoring for their homeschooled child or cover tuition at a private school that offers a specific program.

Potential Shifts in the Education Landscape

The SCHOOL Act intends for these federal funds to supplement, not replace, state and local funding. It also explicitly states it won't affect a child's eligibility for free or reduced-price school lunches. A key provision prohibits the federal government or states from exercising control over the curriculum or operations of non-public education providers receiving these funds. While this offers more autonomy to private and home schools and expands choice for some parents, it also means potentially different accountability and oversight structures compared to public schools. The practical effect could be a significant shift in resources, potentially impacting funding levels and programs available in traditional public schools, especially those serving large numbers of students eligible for these federal aid programs.