Education Savings Account Qualified Expenses: What ESA Funds Can Cover

What is an ESA?

An education savings account (ESA), also called an education scholarship account, is a state-funded spending account for eligible K-12 students. These accounts enable families to use money allocated for public school education to pay for private school or other educational expenses. This differs from a Coverdell ESA, which is a tax-advantaged custodial account that families establish independently.

ESAs exist to provide families with educational choices beyond their local public school, allowing them to select where and how their child learns while using state funds to offset costs.

How do state-sponsored ESA programs work?

State-funded K-12 ESA programs deposit government education funds directly into accounts for family use. These programs vary by state; some serve all eligible families, while others target specific populations like students with disabilities or those meeting income thresholds.

Universal programs like Wyoming's and Arizona's serve all children eligible for public school enrollment. Other states maintain targeted programs—for example, Indiana's Education Scholarship Account targets K-12 students with special education needs or meeting certain income requirements.

The landscape is evolving, with additional states expected to introduce or expand ESA programs in 2026.

What can an education savings account be used for?

Education savings accounts cover K-12 in-person private schools, online schools, and homeschool programs. Leftover K-12 funds can support college expenses.

Tuition and fees

ESA funds cover tuition for in-person and online K-12 schools, along with application fees and registration fees, making alternative educational options more accessible.

Books and supplies

Qualified expenses include textbooks, workbooks, and standard supplies like notebooks and art materials. For homeschooling families, curriculum materials and lesson plans qualify. Digital materials including ebooks and educational apps also count.

Technology and equipment

Computers, tablets, educational software subscriptions, and internet access needed for online learning are covered, though state programs may impose specific purchase guidelines.

Tutoring and educational services

One-on-one or small-group tutoring qualifies for academic support, test preparation, and enrichment. Educational testing costs also qualify under most programs.

Special education expenses

Students with IEPs or 504 plans can use ESA funds for specialized services, assistive technology, therapeutic programs, and adaptive equipment, including art therapy and speech therapy.

What do most families use ESA funds for?

Most families direct funds toward tuition, curriculum materials, and tutoring services.

According to the Arizona Department of Education, families in Arizona receiving $7,000-$8,000 annually spend over 60% on private school tuition. Nearly 12% goes to instructional materials, and approximately 8% supports teaching and tutoring services.

The Thomas B. Fordham Institute reports that 57% of Florida ESA families used funds for private school tuition, over 20% purchased instructional materials, 11% paid for specialized services, and 5% spent on tutoring.

How to use your ESA funds

Following approval and enrollment, the state deposits funds quarterly or annually. Families access these funds through special debit cards or payment platforms to pay pre-approved vendors directly. State rules vary regarding qualifying expenses, spending limits per category, and approved vendors. Some states require receipt submissions for reimbursement; others enable direct vendor payments.

Compliance tips:

• Verify expenses qualify before spending
• Retain all receipts and invoices
• For dual-purpose items, only educational portions qualify
• Review your program's specific guidelines
• Contact your ESA administrator when uncertain
• Report any accidental non-qualified expense usage

You can use your ESA funds at bina!

As of now, state-funded ESAs cover bina tuition in Arizona and Wyoming, with additional states coming soon.

Wyoming and Arizona residents likely qualify simply by residing in-state and not attending public school, with no income requirements. Both states allow families to use $7,000 in ESA funds toward bina tuition.

Bina is a global online school serving ages four to 12, emphasizing small classes and precision education balancing personalization with standardization.

Frequently Asked Questions

Can I use ESA funds for homeschooling?

Yes, most state-funded programs cover homeschool expenses including curriculum materials, textbooks, educational software, online courses, and tutoring. Some states require homeschool registration first. This flexibility appeals to homeschool families seeking resources beyond free curriculum options.

Which online schools accept ESA funds?

Most accredited online private schools, including bina, accept ESA funds. State programs typically maintain pre-approved school lists available on their websites.

What happens to unused ESA funds?

Rollover rules vary significantly by state. Most allow unused funds to roll over year-to-year, and some permit college use. Others require returning unused funds when children leave the program. Check your specific state guidelines.

Do all states have ESA programs?

No. As of May 2025, 18 states have established K-12 ESA programs, with more considering legislation.