2025 Legislative Session in Review

Choice for All is the School Choice Standard

It was a landmark year for education choice overall, and an especially pivotal one as programs with universal access gained unprecedented momentum. Of the eight states–Idaho, Indiana, Missouri, New Hampshire, South Carolina, Tennessee, Texas, and Wyoming–that created or expanded choice programs in 2025, six now offer programs with universal eligibility, meaning any student may apply to participate. New Hampshire took it a step further by securing true universal education choice.

In the first half of the year, EdChoice tracked 89 bills in 36 states relating to education savings accounts (ESAs), vouchers, refundable tax credits, tax-credit ESAs, and tax-credit scholarships. A majority (71%) related to ESAs.

A Fifth State Realizes True Universal Education Freedom and Choice

With Gov. Kelly Ayotte’s signature in June, true universal education freedom and choice, that guarantees universal eligibility, usage, and funding, became the law of the land in New Hampshire. The legislation, SB 295, lifts the income cap on the state’s Education Freedom Account (EFA) Program, making all Granite State students eligible to participate. Enacted in 2021, the program already offered families universal usage with scholarships (valued at an average of $5,204 per student) that can be spent on a wide array of qualifying expenses, and universal funding, with guaranteed funding for all participants. The move to lift the income cap was the final step toward achieving true education freedom as first envisioned by Milton and Rose Friedman.

The legislation places an enrollment cap on the program, but that cap has an escalator. For any year in which at least 90% of the enrollment cap is met, that cap is to be increased by 25% in the next year. The cap does not apply to certain priority students–those with family incomes not exceeding 350% of the Federal Poverty Level (FPL), returning students, siblings of participating students, and students with disabilities and will be lifted completely if not met for any two consecutive years.

In 2025, New Hampshire emerged as 2025’s leader in education choice, joining Arizona, Arkansas, Florida, and West Virginia in ensuring that all students can enjoy all options and receive all dollars. It is the 19th to adopt universal eligibility, and the first—and only—state in New England to do so.

Universal Eligibility Continues Sweeping the Nation

There’s plenty to celebrate across the rest of the country as well. While true universal choice remains a work in progress in some places, five more states—Idaho, Indiana, Tennessee, Texas, and Wyoming—now offer programs with universal eligibility.

Tennessee was the first state to enact a new choice program this year. With Gov. Bill Lee’s signature of HB 6004, the Tennessee Education Freedom Scholarship Act will initially create 20,000 scholarships available statewide, each values at approximately $7,000. Half of the scholarships will be reserved for students from low- and middle-income families, students who already qualify for the state’s existing choice programs, and students with disabilities. If 75% of scholarships are awarded, the number of available scholarships will increase to 25,000 in the program’s second year. Scholarships must first be used on tuition, and any remaining funds will be available for covering other approved educational expenses. Its funding mechanism and restrictions on usage make the program fall short of universal funding and usage.

Of those advancing choice this year, Texas officially launched what may become the nation’s largest ESA program. With Gov. Greg Abbott’s signature in May, SB 2 set aside an initial $1 billion appropriation, with accounts valued at roughly $11,000 per student to be used on private school tuition and other approved educational expenses. Additionally, students with disabilities may qualify for accounts funded at $30,000, and homeschool students may receive $2,000. While $1 billion is a formidable appropriation, the program still falls short of universal funding, with not all Texas students being guaranteed seats.

Idaho established its first education choice program this year, opting for a refundable tax credit.  HB 93 with Gov. Brad Little’s signature, created The Idaho Parental Choice Tax Credit which will be funded with a $50 million appropriation, falling short of universal funding. Scholarships will be valued at $5,000 per eligible student and $7,500 for eligible students with disabilities. Families may use funds on a range of qualifying educational expenses, but the program is still too restrictive to meet the threshold for universal usage.

Delivering universal eligibility by expanding its existing program, Wyoming made quite the upgrade to its ESA. Now known as the Steamboat Legacy Scholarship Act, with Gov. Mark Gordon’s signature, HB 0199 expanded the state’s ESA program to include all students,  and secured $30 million in funding to support the broadened eligibility. With this funding mechanism, the program still falls short of universal funding. Scholarships will be valued at $7,000 per student and provide parents with wide flexibility in how funds are spent.

The Steamboat Legacy Scholarship program is currently being challenged in court, and EdChoice is defending it along with the Institute for Justice, via the Partnership for Education Choice.

Previously nearing universal eligibility with its Choice Scholarship Program, Indiana completely lifted the income cap on its Choice Scholarship Program with Gov. Mike Braun’s approval of HB 1001. Previously, only 96% of students in the state were eligible to receive scholarships worth up to 90% of the state per-student spending amount for the sending district school. Now all students in the state are eligible. With funding tied to the state’s education funding formula, all students are guaranteed funding. Funds may be used on private school tuition and fees.

States Advancing Choice but Falling Short of Universal

While South Carolina didn’t cross the finish line on universal choice this year, it still took decisive action for families with SB 62, signed into law by Gov. Henry McMaster. The new law restores tuition as an allowable expense under the state’s ESA program, the Education Scholarship Trust Fund, after last year’s state Supreme Court ruling deemed it unconstitutional. To do so, the program will now have two revenue streams. Scholarships will now be valued at $7,500, up from $6,000, and the prior-public requirement will be dissolved. In a phase-in, by year three, it will be available to students with family incomes not exceeding 500% FPL. Priority will be given to siblings of current students, children of active-duty military families, students who attended public school in the previous year, and students from low-income families. While South Carolina is now a “universal usage” state again, it still falls short of universal eligibility and funding.

With Missouri Gov. Mike Kehoe’s signature of HB 12 , the state’s tax-credit education savings account program is receiving an additional $50 million appropriation. It will increase the number of available scholarships.

Two States Finalized Program Funding Amounts

In May, Alabama finalized the appropriation for the CHOOSE Act, enacted last year, opting to fund the program at $180 million in its first year of operation, opening up seats for roughly 24,000 students. With this funding mechanism, the program falls short of universal funding but already offered universal eligibility and usage.

Louisiana took a similar step to finalize funding for the LA GATOR Scholarship Program, though lawmakers approved less than the $94 million initially proposed by Gov. Jeff Landry and  backed by the House. Instead, the program will receive a $43.5 million appropriation, drawing from the same funding as the state’s voucher program, which is being phased out. In the phase-out, students in that program will be moved over to GATOR. At this funding level, the  program will serve no more students than the existing voucher’s capacity. At this funding level and mechanism, the program falls far short of universal funding, but already achieved universal eligibility and usage.

A Setback in One of the Last “Red State” Education Choice Holdouts

While 2025 was yet another widely successful year for the education freedom movement, it was not without a setback. In North Dakota, a bill passed by the legislature that would have established the state’s first private school choice program was vetoed by Gov. Kelly Armstrong. In comments explaining his veto, Armstrong stated that the bill, “fell far short of truly expanding choice as it only impacts one sector of the student population.” The ESA program would have offered universal eligibility, but scholarships would have been funded based on family income and small compared to those in other states, ranging from approximately $800 to $2,800. The legislature will not have another opportunity to advance choice for another two years.

The momentum behind universal education freedom is undeniable. More states than ever before are creating choice programs open to all families and shifting America’s education system away from a one-size-fits-all model and toward a future where all dollars follow the student.

Just a few years ago, this level of progress was unthinkable. Still, much work remains. Many states with universal eligibility programs have yet to maximize flexibility for families or ensure funding reaches all students. This moment presents both a challenge and opportunity as the movement continues working to fulfill Milton and Rose Friedman’s vision for education.