Tennessee’s Education Freedom Scholarship program expands for 2026-27. What families need to know

Tennessee’s Education Freedom Scholarship program is larger for the 2026-27 school year, but families who did not apply during the application period generally cannot newly enter this year’s pool. The state says all 35,000 available scholarships have been reserved, with each 2026-27 award projected at $7,530. A reserved award is not the same as completed enrollment or a payment.

The expansion matters to families considering participating private schools, to schools that accept the funds and to public-school districts whose future funding can be affected when students leave. It also commits the state to substantially higher education spending, although the exact district effect depends on enrollment and TISA funding changes.

What changed for 2026-27

Public Chapter 963, enacted May 18, 2026, raised the statutory maximum number of Education Freedom Scholarships for 2026-27 from 25,000 to 35,000. Tennessee’s statewide program debuted with 20,000 slots for 2025-26, so the new cap is 15,000 higher than the program’s first-year capacity.

The Tennessee Department of Education reported more than 56,000 applications, said all 35,000 scholarships were reserved and reported awards reaching students in 93 of Tennessee’s 95 counties. The department also said 81% of new scholarships went to applicants who qualified through income requirements or eligibility for the state’s Individualized Education Account or Education Savings Account programs. That is a state-reported program figure, not an independently audited finding.

How much families can receive

The projected 2026-27 EFS amount is $7,530. The amount is tied to the base funding amount in Tennessee’s Investment in Student Achievement, or TISA, formula, and the scholarship is funded by the state.

Families should not assume that $7,530 will cover a private school’s full cost. EFS funds are used first for tuition and fees at a registered Tennessee Category I, II or III nonpublic school. If a school’s tuition and fees exceed the award, the family may have to pay the difference and any other costs not covered by the program.

Program materials describe additional permitted education expenses, but those purchases remain subject to current EFS rules, approved providers and account procedures. Families should confirm an expense is allowed before using scholarship funds.

Who received priority

Applications exceeded the number of available scholarships, so the program used priority categories rather than awarding a scholarship to every eligible applicant.

Renewal applicants—students who received an EFS scholarship in the immediately preceding school year—were placed in the first priority category. New applicants who met the program’s income requirements or qualified through the IEA or ESA programs received priority ahead of applicants in later categories. The remaining categories included students enrolled in a Tennessee public school when they applied and children entering kindergarten, followed by applicants who did not qualify for an earlier priority level.

Within the applicable priority categories, completed applications are ordered according to the program’s rules. Eligibility by itself does not guarantee a scholarship when applications exceed the available cap.

What families with reserved awards must do

A reserved scholarship is not the same as completed enrollment, an active account or a disbursement. The student must enroll in an EFS-registered school, and the enrollment must be confirmed through the program’s process. Families also must continue meeting the program’s participation and documentation requirements.

The Tennessee Department of Education lists projected quarterly disbursement dates of Aug. 15, Oct. 15, Jan. 15, 2027, and March 15, 2027. Those dates are projected, and payment depends on the student’s enrollment and compliance with program rules.

Families with reserved awards should check their EFS portal and decision notices, communicate with the participating school and contact the department if enrollment or account information is incomplete. The EFS program is separate from Tennessee’s ESA and IEA programs; participation in one program does not automatically transfer an award to another.

Which schools can accept EFS funds

Scholarship funds may be used only at participating Category I, II or III nonpublic schools located in Tennessee. The state described the 2026-27 network as nearly 300 participating schools. Families should use the current official school list when comparing options because participation can affect where the scholarship is usable.

Admission remains a decision made by each school. A scholarship reservation does not require a school to admit a student, and enrollment at a participating school is necessary before EFS funds can be used.

Why districts and taxpayers are watching

The fiscal documents estimate total General Fund spending of $150.6 million for FY2026-27 and $155.36 million for FY2027-28 under the fiscal-note assumptions. Those figures were based on a proposed 40,000-scholarship level. For the enacted expansion from a 25,000-scholarship baseline to 35,000, the fiscal summary estimated a direct recurring increase of $112.95 million in FY2026-27 and $116.52 million in FY2027-28.

The fiscal note also says the effect on local education agencies is partly indeterminate. Tennessee’s hold-harmless provisions can protect some prior-year district funding when enrollment falls, but they do not necessarily replace future increases that might otherwise result from enrollment growth or higher TISA funding levels.

That does not mean every district loses an amount equal to each scholarship. The effect will vary with student transfers, district enrollment, TISA allocations and the operation of the hold-harmless provisions.

What happens next

For the 2026-27 school year, the immediate questions are how many reserved scholarships become active awards, whether families complete enrollment and how many scholarships are ultimately disbursed. The state is also required to continue reporting information about applications and the program’s operation to legislative education committees.

The current Tennessee Department of Education program page says applications for 2026-27 are closed. State program materials have contained conflicting deadline references, including a Jan. 30, 2026, 4 p.m. deadline in the official FAQ and a later Feb. 6 date on another program page. Because the application window is closed either way, families who did not apply should watch the department’s EFS page for the next cycle rather than assume a late application can be added to the 2026-27 pool.

Sources

• Tennessee Education Freedom Scholarship Program
• Tennessee General Assembly SB2247/HB2532 bill information
• SB2247 Fiscal Summary
• TDOE Celebrates Education Freedom Scholarship Program Expansion
• Tennessee legislature narrowly passes school voucher expansion, raising total spots to 35,000

Look for updates to this story

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