Tennessee's Education Freedom Scholarship in Plain English: Who Qualifies, What It Pays and How It Works

Tennessee now has three state-funded school choice programs, and the newest and largest is the Education Freedom Scholarship, or EFS. In one sentence: an eligible Tennessee student gets a state-funded scholarship that must first pay tuition and fees at a registered private school in Tennessee, with any leftover money available for other approved education expenses. This guide explains how it works.

Where it came from

The Legislature passed the Education Freedom Act of 2025 during an extraordinary session in January 2025, and Governor Bill Lee signed it on February 12, 2025. The program lives in Tennessee Code Annotated §49-6-3501 and the sections after it, and it is governed by State Board of Education Rule 0520-01-24. The Tennessee Department of Education runs it.

The program in six lines

• Amount for 2026-27: $7,530, according to the department's EFS page.
• Seats for 2026-27: 35,000, after a 15,000-seat expansion signed May 7, 2026.
• Who qualifies: a Tennessee resident entitled to attend public school in K-12, who is a U.S. citizen or lawfully present and has completed fewer than 13 years of school.
• Where it can be used: only at an EFS-registered Category I, II or III private school physically located in Tennessee.
• What it pays first: tuition and fees. Leftover money can go to other approved expenses.
• Renewal: every year, through an abbreviated renewal application.

How the amount is set

The FAQ says the scholarship is 100 percent state funded and equal to the base funding amount per student in the Tennessee Investment in Student Achievement formula, known as TISA. Because TISA's base changes, the EFS amount is expected to change each year. All scholarships depend on appropriations.

How many scholarships there are

The law capped the first year, 2025-26, at 20,000: 10,000 for students meeting income criteria or eligible for the ESA or IEA programs, and 10,000 open to any eligible student. It also let the department add up to 5,000 seats when applications exceeded 75 percent of available seats. In 2026, the Legislature went further. The department's May 7, 2026, announcement says legislation signed that day expanded the program by 15,000 seats, for 35,000 in 2026-27. It reported 56,440 applications for 2026-27 and 17,735 applications still on a waitlist.

Who gets a seat first

From the second year on, when applications exceed seats, the department awards scholarships in priority order, in the order completed applications are received within each group:

• Priority 1: current EFS recipients renewing.
• Priority 2: household income at or below 100 percent of the free or reduced-price lunch threshold, or students eligible for the ESA or IEA programs.
• Priority 3: household income at or below 300 percent of that threshold.
• Priority 4: students currently in a Tennessee public school or eligible to enroll in kindergarten.
• Priority 5: all other eligible students.

The FAQ is strict about one detail: your priority is set by what you submit with the original application. Information added later does not move you up.

How the money moves

EFS money is not paid to parents. It sits in an online account, and the portal pays schools and approved vendors. For 2026-27 the department's calendar shows four funding events: 50 percent around August 15, 20 percent around October 15, 20 percent around January 15 and 10 percent around March 15. Schools bill tuition through the portal. The EFS Marketplace, where families buy other approved items once tuition is covered, was projected to open October 19, 2026, for students with no pending tuition. Program emails come from TheoLearning.com and tnedu.gov addresses.

What it pays for

Tuition and fees at the EFS-registered school come first. After that, the FAQ lists textbooks, curricula, instructional materials and uniforms at the student's school; approved summer and after-school academic programs; tutoring by a licensed Tennessee teacher or an accredited agency; commercial transportation to the school; early postsecondary courses and college admission or industry exams; therapies from department-approved licensed therapists; and approved technology, limited to one device per student per year and bought through the Marketplace. Internet service and software sold separately are not allowed.

Strings attached

Participating schools must give EFS students either the state TCAP tests or a nationally standardized achievement test each year in grades 3 through 11 and report results to the state's Office of Research and Education Accountability. A student with a disability who uses EFS gives up the right to a free appropriate public education through an IEP while in the program, though equitable services may be available. Scholarships are not taxable income.

Leaving the program

If a student withdraws from the participating school during the year, the FAQ says the school must refund prepaid tuition covered by EFS, and the scholarship for that year is prorated by days enrolled. Funds left when a student leaves the program, including at graduation, are forfeited.

A family weighing it

The Whitfields in Murfreesboro have a fourth grader in public school and a kindergartner starting next year. Their household income is under 300 percent of the lunch threshold, so both applications fell in Priority 3. They applied on the first day of the January window, were conditionally approved in February, and had a nearby Category II school confirm enrollment in the portal before the June 30 deadline.

(A composite example — names and details are illustrative, drawn from situations homeschool families commonly describe.)

What homeschoolers should know

Independent home schools and church-related umbrella home schools cannot use EFS. A homeschooled child can apply, but must enroll in a registered Category I, II or III school to receive funds. We explain why in a separate article, and our EFS guide compares all three programs.

Checklist

• Watch the EFS page for 2027-28 application dates, which had not been posted as of October 2026.
• Gather proof of citizenship or lawful presence and two Tennessee residency documents.
• If you qualify for a priority group, include that documentation the first time.
• Talk with your chosen school early about admission and portal enrollment.
• Put application and enrollment deadlines on your education calendar.

My Learning Source is an independent marketplace and is not affiliated with the Tennessee Department of Education, the Tennessee State Board of Education, the Education Freedom Scholarship Program, the ESA or IEA programs, or any Tennessee school district. Amounts, seat counts and dates are set each year — confirm details with the Tennessee Department of Education before you act. Family examples are composites, not real individuals.