Student Funding

Vouchers are worth up to 90 percent of the state per-student spending amount for the sending school district.. Families can supplement vouchers with additional funds. Students eligible to receive district-allocated special education funds are now eligible to use those funds for special education services at a voucher-accepting school.

(Last updated January 17, 2023) 

Student Eligibility

To receive a Choice Scholarship, children must be between ages 5 and 22 and must be from families that earn up to 300 percent of  the amount required for the individual to qualify for the federal free and reduced– price lunch program ($154,013 for a family of four in 2022–23). In addition to the age requirement and means testing, students must meet at least one of six additional eligibility pathways that, if any one is met, qualify a student for a voucher. 

 These are: (1) students who attended a public school (including a charter school) for the preceding two semesters; (2) students or the siblings of students who have received a Choice Scholarship or a scholarship of at least $500 through Indiana’s School Scholarship Tax Credit program in a previous school year, including a school year that does not immediately precede the school year for which the student is applying for a Choice Scholarship; (3) students with a disability requiring special education, and has an Individualized Education Plan (IEP) under IC 20-35 or a Service Plan (SP) under 511 IAC 7-34; (4) students who are residentially assigned to a public school given an “F” grade under IC 20-31-8-4; (5) students who used an Early Education Grant to attend prekindergarten at an eligible Choice Scholarship school in which they intend to enroll for kindergarten; (6) students placed in foster care as verified by a Department of Child Services (DCS) letter. Foster children are automatically income eligible. 

(Last updated January 17, 2023) 

EdChoice Expert Feedback

Indiana’s voucher program for students helps tens of thousands of disadvantaged students access schools that are the right fit for them, but policymakers could do much more to expand educational opportunity.

Eligibility for the vouchers is limited to a variety of low- and middle-income and disadvantaged students. About 80 percent of Indiana’s students are eligible for a scholarship. Less than 10 percent of students statewide actually participate in one of Indiana’s private educational choice options (including the School Scholarship Tax Credit and the Education Scholarship Account Program).

The average voucher value is about $5,439, which is about half of the average expenditure per student at Indiana’s district schools.

In order to expand access to educational choice, Indiana policymakers should expand eligibility to all students. The program could also be converted into an education savings account to ensure that all students have access to the education that’s the right fit for them, whether private school or a customized course of education.

Indiana’s voucher program imposes some unnecessary and counterproductive regulations. For example, the program requires voucher students to take the state’s standardized test. Instead of mandating a single test, policymakers should allow parents and schools to choose from a variety of nationally norm-referenced tests.

(Last updated January 17, 2023) 

Rules and Regulations

• Income Limit: 300 percent x FRL  
• Prior Year Public School Requirement: Conditional 
• Geographic Limit: Statewide 
• Enrollment Cap: None 
• Voucher Cap: 90% of State Expenditure 
• Testing Mandates:  State test 

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 state test and report to the state data for A–F ratings, including state assessment scores and graduation rates  
• 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  

(Last updated January 17, 2023) 

Governing Statutes

Ind. Code §§ 20-51-1 through 4

(Last updated January 17, 2023) 

Legal History

On March 26, 2013, the Indiana Supreme Court ruled in Meredith v. Pence, a landmark 5-0 decision, that the Choice Scholarship Program does not violate the state constitution and that constitutional prohibitions against government funding of religious entities does not apply to entities providing primary and secondary education. The case began July 1, 2011, when teachers’ union officials and others challenged Indiana’s voucher program in state court, alleging the Indiana Constitution prohibits funding of religious schools. In Meredith v. Daniels, 49D07-1107-PL-025402 (2012) a Marion County Superior Court denied a motion for preliminary injunction, then granted summary judgment January 13, 2012, in favor of the program. 

On direct appeal to the Indiana Supreme Court, the justices opined, “First, the voucher program expenditures do not directly benefit religious schools but rather directly benefit lower-income families with school-children by providing an opportunity for such children to attend non-public schools if desired. Second, the prohibition against government expenditures to benefit religious or theological institutions does not apply to institutions and programs providing primary and secondary education.” Meredith v. Pence, 984 N.E.2d 1213 (Ind. 2013) 

(Last Updated January 5, 2023)