Why Michigan Has No ESA, Voucher or Tax-Credit Scholarship: The Constitution and the 2021 Vetoes

If you have moved to Michigan from Arizona, Florida, Utah or one of the other states with an education savings account, you have probably searched for Michigan's version. Stop searching. Michigan has no education savings account, no voucher and no tax-credit scholarship for private school or homeschool costs. That is not an oversight or a program waiting to launch. It goes back to the state constitution. Our Michigan homeschool options guide covers everything Michigan does offer. This article explains why the money programs other states have don't exist here, and what that means for your family's budget.

The short answer: Article VIII, section 2

Article VIII, section 2 of the Michigan Constitution starts by telling the Legislature to maintain free public schools. Then it gets specific. As amended by a voter initiative approved November 3, 1970, it says no public money, property or credit may be used "directly or indirectly to aid or maintain" any private, denominational or other nonpublic school.

The next sentence is the one that matters for school choice programs. It says no "payment, credit, tax benefit, exemption or deductions, tuition voucher, subsidy, grant or loan of public monies or property" may be provided, directly or indirectly, to support a student's attendance at a nonpublic school. Read that list again. Vouchers are named. Tax benefits are named. Credits are named. Most of the tools other states use to fund private and home education are spelled out as off limits.

The section does allow one thing: the Legislature may pay to transport students to and from any school.

The part the courts threw out

The 1970 language originally went further. It also barred public money for students at "any location or institution where instruction is offered in whole or in part" to nonpublic school students. In 1971 the Michigan Supreme Court struck that part down in Traverse City School District v Attorney General, holding that it violated the free exercise and equal protection guarantees of the U.S. Constitution. The Legislature's own annotation to the section notes the ruling.

That decision is one reason Michigan's shared-time classes can exist. A public school district can teach nonpublic and homeschooled students in public school classes and count them for state aid. MDE's Pupil Accounting Manual lists the Traverse City case among the legal background for shared time. The money still goes to the public district, not to the family or a private school.

The 2021 attempt: Student Opportunity Scholarships

Lawmakers tried a workaround in 2021. Senate Bill 687 would have created a Student Opportunity Scholarship program, and Senate Bill 688 would have given an income tax credit to people who donated to scholarship-granting organizations. The idea was that private donations, not state appropriations, would fill student accounts.

According to the Senate Fiscal Agency's analysis of the committee version, the Department of Treasury would have run the program, scholarship organizations would have funded accounts for eligible students, families could have spent the money on listed education expenses, and donors could have claimed a state credit of up to 100% of their contributions, with total credits capped at $500 million per state fiscal year. The analysis noted the accounts could help students attend nonpublic schools or home schools.

The bills passed the Senate 20 to 16 on October 19, 2021, and the House 55 to 49 on October 27, 2021. Governor Whitmer vetoed both on November 5, 2021. Nothing comparable has become law since.

What about the new federal tax credit?

A federal scholarship tax credit starts January 1, 2027, but only in states that opt in. Michigan was not on the IRS list of participating states as of October 22, 2026. We cover that in a separate article. Even if Michigan joins, it would be a credit for donors to scholarship organizations, not a state account for families.

What Michigan does pay for

Michigan spends public money on public school options that homeschoolers can use. None of it lands in your bank account.

• Shared-time classes. A district can enroll a homeschooled student part-time in nonessential elective courses such as art, music, physical education, world languages and career-tech, and count that student for state aid, never more than 0.75 of a full-time student. For 2026-27 the target foundation allowance is
  0,300 per full-time pupil (2026 PA 25). That money goes to the district.
• Dual enrollment. Eligible high school students can have college tuition and mandatory fees paid, but a homeschooled student has to enroll in at least one class at a public or state-approved nonpublic school and dual enroll through it.
• State tests. Homeschooled students may take state assessments at their local public school at no cost, by arrangement with the district.

MDE's Home Schooling in Michigan guide puts it in one line: "There are no public funds available for home schooling."

What it means for your budget

Plan to pay for core curriculum, tutoring, therapy, testing and enrichment yourself. Districts are not required to give homeschool families textbooks or materials. The trade-off is freedom. Under exemption (f), Michigan asks for no notice, no registration and no testing. Families in ESA states often take on spending rules, receipts and annual reviews in exchange for the money. Michigan families keep the paperwork light and carry the cost.

That makes free and low-cost options worth real attention: district partnership classes for electives, library programs, co-ops and used curriculum. It also means a good tutor or class is a direct purchase, and you are the only one who has to approve it.

The Novaks moved from Phoenix to a township outside Grand Rapids with two kids, 9 and 12. In Arizona they had used an ESA for curriculum and a math tutor. In Michigan they found no account to apply for, so they rebuilt the budget around what they could pay directly. They signed both kids up for their district's homeschool partnership art and physical education classes, kept the math tutor through a local provider they found on our vendor directory, and bought core curriculum used through their co-op.

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

Checklist for families new to Michigan

• Stop looking for a Michigan ESA or voucher application. There isn't one for 2026-27.
• Decide whether you will homeschool under exemption (f) or register with MDE as a nonpublic school. Our homeschool options guide explains both.
• Ask your resident district whether it runs a shared-time or homeschool partnership program for electives.
• Budget for core curriculum and services as a family expense.
• Check the IRS participating-states list in 2027 if you plan to donate to a scholarship organization.
• Add district enrollment dates and local events to your education calendar.

My Learning Source is an independent marketplace and is not affiliated with the State of Michigan, the Michigan Department of Education, the Michigan Legislature, the Internal Revenue Service or any Michigan school district. Laws and budgets change — confirm current rules with the Michigan Department of Education and the Legislature before you act. Family examples are composites, not real individuals.