Military Family Education Bill Offers $6,000 for Private School, Shifts $1.2 Billion from Federal Budget

This new legislation, the Education Savings Accounts for Military Families Act of 2025, sets up a major federal program that essentially hands military families a voucher for private education. Starting in the first school year, eligible military dependent children will get a Military Education Savings Account (MESA) funded with an initial $6,000, with that amount increasing every year based on inflation (Chained Consumer Price Index). Parents can use this money for a massive list of educational expenses, from private school tuition—including religious schools and homeschool co-ops—to tutoring, technology, summer camps, and even college tuition or vocational training fees.

The $6,000 Question: Who Gets the Money?

To qualify, a child must be an eligible dependent of an active-duty service member. There’s a catch for first-time applicants: the child must have been enrolled in a public K-12 school for at least 100 consecutive days the year before applying. Once you’re in, the renewal is automatic. Parents must sign an agreement promising to ensure their child gets instruction in core subjects (reading, math, science, etc.) and, crucially, that they won’t enroll the child full-time in a public school while using the funds.

This bill authorizes a serious amount of cash: $1.2 billion for the first fiscal year (FY 2026), which is also indexed to inflation going forward. If Congress doesn't appropriate enough money to cover every eligible child, the Secretary of Education has to prioritize. First, existing accounts get fully funded. For new accounts, there’s a lottery system that gives priority to siblings of current participants, followed by children of enlisted members, then warrant officers, and finally, children of commissioned officers get the lowest chance. If things get really tight, the Secretary can even transfer funds from any other Department of Education account to keep the program running, which could potentially pull resources from existing public education programs.

School Choice, No Strings Attached

One of the most significant aspects of this bill is the protection it offers to the private providers who accept these MESA funds. The bill explicitly states that accepting this federal money does not make a private, religious, or home education provider an agent of the state or federal government. Furthermore, the federal or state government is prohibited from supervising or controlling any aspect of these providers, including their curriculum, admissions policies, or religious character. This means if you use your MESA funds for a private school, that school doesn't have to change its mission or curriculum to comply with federal education mandates.

For the parents, the financial benefit is also protected: the money deposited into the MESA and the money spent on approved expenses are completely exempt from federal taxes. However, parents must submit a report showing how they spent the last transfer of funds before they get the next quarterly deposit. To keep things honest, the Secretary must set up a fraud hotline and conduct random audits quarterly or annually. If a provider receives $100,000 or more from these accounts in a year, they must post a surety bond, adding a layer of financial security.

The Real-World Friction Points

This bill creates a clear benefit for military families seeking alternatives to public schools—especially those who move frequently and want educational continuity. However, it also creates some wrinkles. For example, if a family wants their child to take a single class, like advanced chemistry, at the local public high school, the public school can’t offer that class for free. Instead, the parent and the local district must agree on a price, and the MESA funds must be used to pay the district. This changes the dynamic between public schools and families using these federal funds.

Another point is the priority system. While it’s designed to help lower-ranking service members get access first if funds are scarce, it also means that children of commissioned officers are explicitly put at the back of the line for new accounts. For a busy family, regardless of rank, navigating a lottery system and proving eligibility every year just adds another layer of administrative complexity to an already high-stress life.