States Expand School Choice Funding Amid Debate on Effectiveness and Accountability
February 24, 2026
Research suggests school choice can put competitive pressure on public schools and potentially raise performance, though results vary by state and program design.
Texas’s program offers substantial per-student awards and has a waitlist-driven expansion plan, with over 111,000 applications by mid-February and a funding trajectory that could grow to billions.
Texas plans to evaluate expansion potential based on waitlists and ongoing appropriations, signaling possible future rollouts.
States are expanding funding and eligibility for voucher and scholarship programs, with Alabama, Oklahoma, Tennessee, South Carolina, and Missouri pursuing larger budgets and removing income limits, while Texas launches the country’s largest program with caps and targeted eligibility.
Universal programs are growing, leading to more students being covered and intensifying budget pressures and waitlists nationwide.
Analysts question the effectiveness and accountability of spending on private schooling, debating whether enrollment translates to better outcomes and how funds compare to public-school investment.
By next school year, at least 17 states are expected to have universal programs, potentially making about half of U.S. students eligible for private-school funding, according to FutureEd.
The rise of school-choice programs is driven by rapid growth and rising costs as states expand access to private-school scholarships and related funds, broadening the private option.
A federal tax-credit provision alongside broader legislation could fund private-school scholarships by allowing donations to nonprofits, with 23 states reportedly opting in.
As of now, 23 states have opted into the federal program, with most participation coming from Republican-led states, while some Democratic-led states are considering alternatives or opting out.
Arizona operates the first universal program, serving over 100,000 students at roughly $872 million in fiscal 2025, but Governor Hobbs argues for scaling back amid concerns about accountability; audits found some ESA funds used for unauthorized purchases.
North Carolina has spent over half a billion dollars on vouchers this year and moved to a universal program in 2023, allowing even wealthy families to receive up to $7,900 annually.
Summary based on 2 sources
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Sources

Asheville Citizen Times • Feb 24, 2026
School choice programs grow in popularity — and cost
Stateline • Feb 23, 2026
School choice programs grow in popularity — and cost