Could federal education funding follow students instead of being directed primarily through traditional school systems? A new proposal in Congress would create School Freedom Accounts that could be used for homeschooling, private education, microschools, learning pods and other educational services. But the proposal also includes a major restructuring of federal K–12 education funding.
For families who have considered homeschooling, private school, microschooling, online education or other alternatives to their assigned public school, the School Freedom Act of 2026 is legislation worth understanding.
Introduced by Representative Nancy Mace (R-SC) on October 13, 2026, H.R. 10801, the School Freedom Act of 2026, proposes a new federal School Freedom Account system that would allow eligible families to direct certain federal education dollars toward approved educational expenses—or authorize those funds to go to their child's public school.
The proposal reaches beyond traditional school choice debates. It addresses how federal education dollars are distributed, what families may spend them on, and whether private, religious and home education providers could participate without changing their curriculum or practices.
But there is an important distinction: this is a proposed federal funding system, not a benefit families can apply for today. The amount available to each student would depend on a funding formula, and the bill would also eliminate most existing federal elementary and secondary education programs.
Here is what parents need to know.
What Is the School Freedom Act of 2026?
The School Freedom Act of 2026 would establish a federal program called School Freedom Accounts.
Under the proposal, the U.S. Department of the Treasury would establish an account for each eligible student. Beginning with the 2027–28 school year, the federal government would deposit an annual amount into each account based on a per-pupil calculation.
Parents could then choose between two broad paths:
Public school: Parents could authorize the federal portion of the account to be distributed to the local educational agency serving their child's public school.
Non-public education: Parents who elect not to have their child attend a public elementary or secondary school could access the account funds for eligible educational expenses.
The legislation also allows parents and states to contribute additional funds to these accounts.
This is a significant shift from a system in which many federal education dollars are allocated through programs and institutions. The proposal would create a mechanism for eligible families to direct certain funds toward their children's education.
The bill does not establish a universal voucher for every family regardless of eligibility. It creates a specific federal account program with eligibility requirements and rules governing how funds may be used.
How Much Money Would Families Receive?
One of the biggest questions parents will have is straightforward: How much money would actually be available for each child?
The bill does not establish one guaranteed dollar amount for every student.
Instead, the annual federal deposit would be calculated by dividing the total federal funds appropriated for the School Freedom Account program by the number of eligible students.
For the first school year beginning on or after July 1, 2027, the calculation would include:
Federal funds appropriated for the School Freedom Account program for fiscal year 2027.
Any unobligated funds remaining from covered federal education programs that are redirected into the new account system.
The total number of eligible individuals counted for that school year.
For subsequent years, the per-pupil amount would be calculated using the federal funds appropriated for the corresponding fiscal year and the number of eligible students.
In other words, the amount would depend on the total funding available and the number of eligible students—not simply a fixed amount selected in the legislation.
An additional $2,000 for eligible children with disabilities
The bill includes an additional deposit for children who meet the federal definition of a child with a disability under the Individuals with Disabilities Education Act.
For the 2027–28 school year, the proposal provides an additional $2,000 per eligible child with a disability.
For each subsequent school year, that amount would increase according to the percentage change in the Personal Consumption Expenditures price index.
This additional amount would be deposited on top of the standard federal per-pupil amount.
For families managing specialized educational needs, therapies, evaluations or assistive technology, this provision could be particularly relevant.
However, the bill does not guarantee that the combined account balance will cover the full cost of a family's chosen educational program.
How Will Parents Know How Much Funding Their Child Will Receive?
One of the biggest unanswered practical questions for families is how they will know the amount available in their child's School Freedom Account before making an educational decision.
The School Freedom Act establishes a formula for determining the annual federal deposit. Rather than guaranteeing every student the same dollar amount, the standard deposit would be calculated by dividing the total federal funding available for the program by the number of eligible students.
This means the amount could vary from year to year depending on the funding appropriated and the number of eligible students.
Children who qualify under the bill's disability provision would receive an additional $2,000 for the 2027–28 school year, with subsequent adjustments for inflation.
The Treasury Department would administer the accounts, giving families a central place to access and use their funds. However, the legislation does not spell out every practical detail parents would want to know, including exactly when families would receive their final account balance, how far in advance that amount would be communicated, or what notification process would be used before families make enrollment decisions.
That distinction matters.
Imagine a family considering a private school with annual tuition of $12,000. If the child's federal account contains $7,000, the family would still need to find a way to cover the remaining $5,000. A homeschool family, on the other hand, might be able to stretch the same amount across curriculum, tutoring, technology and educational services.
The same account balance can have very different purchasing power depending on the educational option a family chooses.
For families considering a microschool, private school, learning pod or homeschool program, knowing the account balance before committing to tuition or other expenses would be essential.
The bill establishes how the funding would be calculated, but families will need clear, timely information about their actual account balances to make informed education decisions. How that information is communicated would be an important part of implementing the program.
What Could Families Spend the Money On?
The proposed list of eligible expenses is one of the most important parts of the legislation.
Rather than limiting the account to private-school tuition, H.R. 10801 identifies a range of educational expenses that could support different learning environments.
Under Section 3(f), eligible uses include:
Homeschool curriculum, books and instructional materials.
Technology and online educational materials.
Tutoring and educational classes outside the home.
Instruction through a microschool or learning pod.
Private-school tuition.
Extracurricular activities.
Testing fees.
Licensed or accredited paraprofessionals and educational aides.
Vocational and life-skills education.
Independent educational evaluations and annual education plans.
Non-public online learning programs.
Individual classes and extracurricular programs provided by public schools.
School uniforms.
Educational diagnostic tools.
Educational therapies for children with disabilities.
Educational and psychological evaluations.
Assistive technology rentals.
Braille translation goods and services.
This list is notable because it recognizes that education does not always happen inside a traditional school building.
A family choosing to homeschool could potentially use account funds for curriculum, instructional materials, tutoring and educational classes.
A family choosing a microschool or learning pod could potentially use funds for instruction through those programs.
A family enrolling a child in a private school could use eligible funds toward tuition.
And a family whose child remains in public school could potentially use funds for individual classes or extracurricular services offered by that school.
The proposal does not treat every educational option as interchangeable, however. A program or expense would still need to fit within the bill's eligible-use provisions.
What About Charter Schools and Other Alternative Schools?
School choice includes more than homeschooling and private-school enrollment.
Families may consider charter schools, independent schools, online academies, hybrid programs, microschools, learning pods, specialized schools and other educational models because their children need a different environment, instructional approach or level of flexibility.
The bill specifically names microschools and learning pods as examples of eligible educational instruction outside the home.
It also includes non-public online learning programs and public-school services.
Charter schools receive a separate mention in the bill's reporting requirements. Section 9 directs the Government Accountability Office to track, among other things, the number of students using School Freedom Accounts to attend public charter schools.
That reporting provision is important, but it should not be confused with an explicit statement that all charter-school tuition or enrollment costs qualify as a separate account expense. The bill's actual eligible-use list and the rules governing public-school disbursements would determine how the system applies.
For families considering alternative education, the broader takeaway is that the proposal recognizes several ways students can receive instruction outside a conventional assigned-school model.
It does not automatically guarantee funding for every alternative school or educational provider.
Would the Funding Be Enough to Choose the School a Family Wants?
This may be the most practical question for parents.
Private-school tuition can vary significantly depending on location, grade level, school type and services offered. Microschools and specialized programs also have different costs.
Because the School Freedom Act does not establish a fixed federal payment per child, families would not know their exact annual federal account amount simply by reading the bill.
The amount would depend on the funding formula and the number of eligible students.
For example, a family considering a private school that charges substantially more than the account balance could still face a tuition gap. A family choosing homeschooling might find that the available funds cover a significant portion of curriculum and instructional expenses, depending on the amount deposited and the family's needs.
The bill also permits parental and state contributions.
Parents could contribute funds to their child's account, including through a pre-tax payroll deduction under regulations established by the Treasury Department. The legislation also provides for a tax deduction for qualifying parental contributions.
States could deposit additional funds into accounts as well.
However, the proposal does not require states to contribute a particular amount.
The practical question is not simply whether an account exists. It is whether the amount available would make a meaningful difference in a family's ability to access the education they want for their child.
That answer would depend on the eventual funding level, the cost of the educational option and whether additional state or private contributions are available.
Would Parents Receive the Money Directly?
The bill proposes a savings account administered by the Treasury Department, rather than a traditional system in which parents receive an unrestricted cash payment.
Parents who choose a non-public education option could access federal, parental and state funds in the account to pay for eligible expenses. The bill also allows parents to apply for a payment card connected to the account.
Parents choosing public school would follow a different process.
They would authorize the federal portion of the account to be distributed to the local educational agency serving the school their child attends. The school district or local educational agency could then use those funds for educational purposes authorized under state law.
There is also a default provision worth understanding.
If a parent does not notify the Treasury Department that the child is not attending public school, or does not provide the required approval for the public-school disbursement, the bill directs the federal funds to the local educational agency serving the student's last known address.
This means families would need to understand the notification and authorization process. Choosing a different educational path would not simply happen automatically because a parent prefers homeschooling or private school.
Are There Restrictions on How Families Can Spend the Funds?
Yes. Although the legislation gives parents broad discretion within its eligible-use list, the accounts would not be unrestricted bank accounts.
Funds would need to be used for qualified educational expenses.
The bill also establishes tax consequences for distributions that are not used for qualified expenses. Under its proposed tax provisions, a nonqualified distribution would be included in taxable income and could trigger an additional tax penalty.
The proposal specifies a 20% penalty for the first such distribution and a 50% penalty for subsequent distributions. It also includes a provision for potential criminal penalties after repeated nonqualified distributions.
Parents would therefore need to understand which expenses qualify before using account funds.
At the same time, the bill places limits on federal oversight. The Treasury Department could not require parents to obtain preapproval before spending account funds, nor could it require that expenditures be made through a particular marketplace or portal.
This is a meaningful distinction: the proposal identifies eligible categories and tax consequences, but it does not establish a federally approved shopping platform or a preapproval system for every purchase.
Could Religious Schools Be Required to Change Their Curriculum?
For families considering religious education, this is an important part of the bill.
Section 7 includes a rule of construction stating that the legislation should not be interpreted to affect private, religious or home education providers, exclude those providers from receiving School Freedom Account funds, or require an educational service provider to alter its:
Creed.
Practices.
Admissions policies.
Curriculum.
In practical terms, the bill is written to protect the ability of private, religious and home education providers to maintain their existing educational and institutional practices while receiving account funds.
Section 8 goes further by restricting the Treasury Department's ability to issue regulations or take other actions imposing limitations or requirements on the use of the accounts, except where authorized by the act.
These provisions are intended to limit federal conditions attached to participation.
However, the bill is still proposed legislation. Its final language, interpretation and implementation would matter. Families and schools would need to review the final law and any permissible regulations before making decisions based on these protections.
Would This Apply in All 50 States?
The proposed program is federal, not a state-by-state school voucher program.
If enacted as written, the School Freedom Account framework would be established at the federal level and would not be limited to states that have already adopted education savings accounts or private-school choice programs.
The legislation also allows states to deposit additional money into the accounts.
One particularly significant provision says that, with an exception concerning the treatment of state funds when accounts convert to postsecondary accounts, states may not impose restrictions or conditions on how their deposited funds are spent.
That would be different from many existing state education choice programs, which have their own eligibility rules, spending requirements and administrative systems.
Still, the federal program would have eligibility requirements of its own.
Under the bill, an eligible individual must:
Not have completed secondary school.
Be or become eligible to attend elementary or secondary school.
Be a U.S. citizen or national.
Have at least one parent who is a U.S. citizen or national.
So while the proposal is national in scope, it would not automatically make every child living in the United States eligible.
What Happens to Existing Federal Education Programs?
This is arguably the most consequential and controversial part of the proposal.
The School Freedom Act would not simply add a new education account option alongside the existing federal system.
Section 2 would terminate each covered federal education program by a date determined by the Secretary of Education, no later than June 30, 2027.
The bill defines covered programs broadly as applicable federal programs whose primary purpose is to support elementary or secondary education, with the new School Freedom Account program excluded.
It also prohibits new federal appropriations for covered programs beginning on the date the act is enacted.
Any funds appropriated for those programs that remain unobligated when the programs terminate would be redirected to the School Freedom Account program.
The proposal also directs the Secretary of Education to submit a plan for consolidating, reorganizing and streamlining the Department of Education in connection with the termination and wind-down of those programs.
This is a major structural change.
Federal education funding currently supports a range of programs and services administered through different channels. Replacing most covered federal K–12 programs with individual accounts would change how those dollars are distributed and how educational services are supported.
Supporters of this approach may see it as a way to give families more control over education funding.
Critics may question what happens to existing services, how funding would be distributed equitably, and whether an account-based system could adequately replace programs serving students with significant needs.
Those questions deserve attention alongside the promise of expanded educational options.
What Happens to Unused Money After a Child Finishes School?
The proposal also addresses what happens if a student does not spend all the money in their School Freedom Account during their K–12 years.
Under Section 4, the account would convert into a separate account called a Higher Education and Skills Obtainment Fund when the student completes secondary school or becomes too old to be eligible for public elementary or secondary education, whichever comes first.
Remaining federal and parental funds would transfer into the new account.
Those funds could then be used for eligible postsecondary expenses, including:
Attendance at an institution of higher education.
Career and technical education.
Other postsecondary educational expenses determined appropriate by the Treasury Department.
The account would terminate when the individual turns 30.
At that point, remaining federal funds would be returned to the U.S. Treasury. Remaining parental funds would be provided to the individual. The state would determine how its own funds are treated.
This provision creates a potential connection between K–12 education choices and later education or career training.
It also means the proposed program is not limited to the traditional college pathway. Career and technical education is specifically included.
What Does This Mean for Families Exploring Education Alternatives?
For parents who have felt limited by their assigned school options, the School Freedom Act raises an important question: Should federal education dollars be connected more directly to individual students and the educational paths their families choose?
The proposal specifically recognizes homeschooling, microschools, learning pods, private schools, non-public online programs, tutoring and other educational services.
That is significant because families do not all define a successful education in the same way.
Some children thrive in a traditional public school classroom. Others benefit from a smaller learning environment, individualized instruction, a religious education, a hybrid schedule, specialized services or a homeschool setting.
For families considering alternatives, access to funding can be one of the biggest barriers. Tuition, curriculum, tutoring, therapies and specialized educational services can add up quickly.
The proposal could create additional financial flexibility for eligible families. But whether it would be enough to make a meaningful difference depends on the final funding formula, account balances, available state contributions and the cost of each family's educational choice.
It is also important to look beyond the individual account. The proposed termination of most existing federal K–12 education programs could have consequences for public schools and students who rely on services supported by those programs.
A serious discussion of school choice should consider both sides: the opportunities created for families who want more options and the potential effects of changing how existing public education services are funded.
Where Does the School Freedom Act Stand in Congress?
As of November 13, 2026, the School Freedom Act of 2026 is a bill that has been introduced in the House of Representatives.
Representative Nancy Mace introduced H.R. 10801 on October 13, 2026. It was referred to the House Committee on Education and Workforce and, additionally, to the House Committee on Ways and Means for consideration of provisions within their respective jurisdictions.
The bill has not become law.
That means the proposed accounts are not currently available, the proposed funding has not been distributed to families, and the 2027–28 implementation timeline is conditional on the legislation becoming law and being implemented.
Families should follow the bill's progress rather than make immediate educational or financial decisions based on the assumption that these accounts will become available.
You can read the introduced legislation in its entirety through the U.S. Government Publishing Office's official bill text.
The Bigger Question: Who Should Control Education Funding?
The School Freedom Act of 2026 is about more than creating another school choice program.
It proposes a different approach to federal education funding—one that would give eligible families the ability to direct certain federal dollars toward a wider range of educational options while fundamentally changing the structure of existing federal K–12 programs.
For homeschool families, private-school families, parents considering microschools and families seeking something different from their assigned public school, the bill is worth watching.
But the most important questions remain: How much funding would actually reach each student? Would it be enough to make alternative education accessible to more families? What would happen to students and schools that depend on existing federal programs? And how would the new system work in practice?
Those are not small details. They are central to understanding what this proposal could mean for American education.
The future of school choice is not simply about where children attend school. It is also about whether families have the resources, flexibility and information to choose the educational environment that best serves their children.
Sources and Further Reading
H.R. 10801 — School Freedom Act of 2026: Official Introduced Bill Text, GovInfo
H.R. 10801 — Official Government Publishing Office Bill Record
Congressional Record, October 13, 2026 — Introduction and Referral of H.R. 10801
Home Tribe will continue following developments in federal education policy and legislation affecting families, homeschoolers, private schools and alternative education.