Students from families that qualified for the federal free and reduced-price lunch (FRL) program can receive a voucher worth up to 90 percent of the state per-student spending amount for the sending school district. Students from families earning 150 percent of that same threshold can receive a voucher worth up to 50 percent of the state funding allocation for the sending district. The maximum voucher size is $4,800 for students in grades K–8 and $4,500 for students in grades 9–12. Families can supplement vouchers with additional funds. Students eligible to receive special education funds are now eligible to use those funds for special education services at a voucher-accepting school.

Children must be between ages five and 22 to participate. Eligible students include: (1) students who attended a public school (including a charter school) for the preceding two semesters and who are from families earning up to (but not exceeding) 150 percent of FRL ($67,433 for a family of four in 2016–17), (2) students with disabilities that have an Individualized Education Plan and who are from families earning up to (but not exceeding) 200 percent of FRL ($89,910 for a family of four in 2016–17), (3) students who attended or would attend a public school designated F and who are from families earning up to (but not exceeding) 150 percent of FRL, (4) students or siblings of students who previously received a voucher or a minimum of a $500 tax-credit scholarship from a scholarship-granting organization or (5) students who received a voucher in the previous school year under this program and are from families earning up to (but not exceeding) 200 percent of FRL.

Indiana’s Choice Scholarship Program is the largest statewide voucher program in the country. Still, the program is lacking in some areas. The average voucher amount is below half of what public school students receive. Also, the income eligibility level is too low for many families to participate. Lastly, participating private schools are required to allow the state to review classroom instruction, instructional materials and curriculum as well as administer the state test. The program has ample room to grow by providing the parents with increased funding and eligibility and lowering regulations on private schools.

• Income Limit: 150 percent x FRL
• Prior Year Public School Requirement: Conditional
• Geographic Limit: Statewide
• Enrollment Cap: None
• Voucher Cap: 90% of State Expenditure
• Testing Mandates: State

School Requirements:

• Be accredited by either the state board or a national or regional accreditation agency that is recognized by the state board
• Comply with health and safety codes
• Must not discriminate on basis of race, color or national origin
• Conduct criminal background checks on employees
• Administer the Indiana Statewide Testing for Educational Progress (ISTEP) program and report to the state data for A–F ratings including ISTEP scores and graduation rates
  • To remain eligible to accept new scholarship students, a school must not be rated as D or F for two or more consecutive years
    • Schools which fall under this category may appeal to the State Board of Education to demonstrate academic improvement during the preceding school year
• Must grant the state full access to its premises for observing classroom instruction and reviewing any instructional materials and curriculum
• Provide civic and character education and display related historical documents

Ind. Code §§ 20-51-1 through 4

On July 1, 2011, teachers’ union officials and others challenged Indiana’s voucher program in state court, alleging the Indiana Constitution prohibits funding of religious schools. A Marion County Superior Court judge denied a motion for preliminary injunction. The trial court issued a summary judgment January 13, 2012, in favor of the program. After an appeal was issued, the Indiana Supreme Court heard oral arguments on the program on November 21, 2012. On March 26, 2013, the Indiana Supreme Court ruled unanimously that the Choice Scholarship Program does not violate any provision of the state constitution. Meredith v. Pence, Indiana Supreme Court, No. 49S00-1203-PL-172