Updated January 13, 2022
Overview of Public and Private School Choice Options
School choice generally refers to the opportunity for parents
According to a 2018 comparison of state intradistrict and
to select an elementary or secondary school for their child
interdistrict polices conducted by the Education
that differs from the assigned school that the child would
Commission of the States (ECS), 47 states and the District
otherwise attend based on where the family lives. School
of Columbia have at least one open enrollment policy—33
choice is often divided into two major categories—public
states and the District of Columbia (DC) have intradistrict
school choice and private school choice. Both types of
enrollment policies and 43 states have interdistrict
school choice programs have proponents and opponents,
enrollment policies. Depending on the state, the policies
and both have garnered substantial congressional interest.
may be mandatory, voluntary, or both, for LEAs. For
This In Focus provides an overview of the various types of
example, a state might require mandatory intradistrict
public and private school choice options that exist and,
choice in certain LEAs (e.g., choice for students in low-
when applicable, highlights federal programs that directly
performing schools or LEAs) but allow it to be voluntary in
support choice. It also discusses homeschooling as a school
other LEAs. Alabama, Maryland, and North Carolina are
choice option. The In Focus does not evaluate the pros and
the only states that do not have open enrollment policies.
cons of each type of school choice option or the myriad
The Elementary and Secondary Education Act (ESEA)
studies supporting or criticizing them.
provides funding for transportation to support intradistrict
Current School Attendance Patterns
school choice for students attending public schools that
Based on data available from the U.S. Department of
have been identified for comprehensive support and
Education (ED), Digest of Education Statistics, there were
improvement under ESEA-required state educational
over 56 million children enrolled in public and private
accountability systems.
elementary and secondary schools during fall 2017. Based
on data for 2016 from the National Household Education
Charter Schools
Survey (NHES) on public and private elementary and
Charter schools are public school options, and thus do not
secondary school enrollment, 87.5% of students attended
charge tuition. Each state’s charter school law asserts the
public schools—68.8% attended their assigned public
requirements for establishing and operating a charter school
school, often based on the neighborhood in which they
in the state, including which entities may serve as charter
lived, and 18.7% attended a public school of choice. About
school authorizers. Students have to apply to a charter
9.2% of the students were enrolled in private schools. The
school to gain admission. Charter schools often use lotteries
remaining 3.3% of students were homeschooled.
to select new students if they have more applicants than
available slots. The schools operate under the terms of a
Public School Choice Options
charter agreement that is established between the charter
Public school choice options include intradistrict public
school and its authorizer (e.g., LEA, state-level authority,
school choice, interdistrict public school choice, charter
institution of higher education).
schools, and magnet schools. Availability of these options
varies across different localities. Families, subject to
Currently, 45 states and DC have charter school laws. (The
financial considerations, also may be able to choose to live
states without charter school laws are Montana, Nebraska,
in areas where they want their children to attend schools.
North Dakota, South Dakota, and Vermont.) According to
the Digest of Education Statistics, as of the 2018-2019
Intradistrict and Interdistrict Public School Choice
school year, 7,427 charter schools were in operation,
Many states operate intradistrict and/or interdistrict public
serving over 3.3 million students.
school choice programs, which are often referred to as open
The Charter Schools Program, authorized by the ESEA
enrollment policies. Under the intradistrict programs,
provides funds to eligible entities to support the
students may choose among some or all of the public
development, implementation, and replication of “high-
schools in a given local educational agency (LEA). Under
quality” charter schools and assist with facilities financing.
the interdistrict programs, students may choose among
public schools in different LEAs; students cross LEA
Magnet Schools
boundaries to attend school. Intradistrict and interdistrict
Magnet schools generally operate as a specialized form of
public school programs differ among states based on many
intradistrict school choice. They are designed to accomplish
factors, including whether the programs are voluntary or
desegregation by encouraging the voluntary enrollment of
mandatory, whether transportation to the new school is
students of different racial backgrounds. To achieve this,
provided, and whether the state sets priorities for districts to
magnet schools offer programs (e.g., science, arts) that will
follow in admitting students (e.g., sibling preference,
be attractive to students who live outside of the traditional
preference to students attending low-performing schools,
boundaries of the magnet school. By attracting students
preference to increase racial, ethnic, or economic diversity).
from across the LEA, it may be possible to alter the racial
composition of a school. During the 2018-2019 school year,
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Overview of Public and Private School Choice Options
there were 3,484 magnet schools in operation, serving 2.7
benefit from a scholarship or ESA provided through tax
million students.
credits.
The ESEA authorizes the Magnet Schools Assistance
Individual state tax credits reduce an individual’s tax
Program, which provides grants to LEAs that are
liability based on educational expenses for household
functioning under a court-ordered desegregation plan or
dependents. Individual state tax deductions provide a
have voluntarily adopted a federally approved
reduction in taxable income based on educational expenses
desegregation plan to establish and operate magnet schools.
for household dependents that is determined prior to the
calculation of tax liability for the household. Individual tax
Private School Choice Options
credits/deductions are available for a variety of purposes,
Some families choose to enroll their children in private
such as tuition, textbooks, and uniforms.
schools by paying out-of-pocket or using funds available
from a 529 plan or Coverdell account. Financial support for
Based on data available in December 2021 from ED
private school choice may also be available through
Choice, 21 states currently offer scholarship tax credits
voucher or scholarship programs, tax credits or deductions,
(Alabama, Arizona, Arkansas, Florida, Georgia, Illinois,
or education savings accounts (ESAs). According to Ed
Indiana, Iowa, Kansas, Louisiana, Montana, Nevada, New
Choice, a school choice advocacy organization, based on
Hampshire, Ohio, Oklahoma, Pennsylvania, Rhode Island,
data available in December 2021, at least one form of
South Carolina, South Dakota, Utah, and Virginia), with
private school choice is offered in 32 states, the District of
Arkansas preparing to launch a program in 2022. The first
Columbia, and Puerto Rico.
ESA tax credit programs were launched in 2021, and are
currently offered by two states (Kentucky and Missouri). In
Vouchers
addition, six states currently offer education tax credits
Voucher, or scholarship, programs use public funds to
(Alabama, Illinois, Iowa, Minnesota, Ohio, and South
finance student attendance at private schools. Payments are
Carolina) and four states offer education tax deductions
made directly from the government to a parent, or to an
(Indiana, Louisiana, Minnesota, and Wisconsin).
institution on behalf of a parent, that are then used to
support student attendance at a private school. The majority
Education Savings Accounts
of voucher programs have been implemented at the state or
ESAs were first established in 2011 as a vehicle for
local levels. Participation in a voucher program may be
providing public funds for educational purposes to eligible
limited to certain students, such as those from low-income
students. ESAs are state-funded individual accounts that are
families, those with disabilities, those attending low-
controlled by parents and used to purchase educational
performing schools, those residing in an LEA that does not
services. Unlike vouchers, which are used specifically to
have a public elementary or high school (these situations
support private school attendance, ESA funds can generally
are referred to as town tuitioning programs), or those with
be used for a variety of education-related expenses, such as
some combination of these or other characteristics. Voucher
tutoring, textbooks, private school, or online courses.
programs may also establish minimum standards, such as
In order to receive an ESA for a child, a student’s parent
student testing requirements, that private schools must meet
must agree not to enroll the child full-time in a public
in order to participate in the program. Based on data
school. In addition, the student must meet program
available in December 2021 from Ed Choice, 16 states and
eligibility requirements, which may be based, for example,
Puerto Rico currently operate at least one state or local
on having a disability or attending a low-performing public
voucher program, for a total of 28 voucher programs:
school. The amount of annual funding provided through an
Arkansas (1 voucher program), Florida (2), Georgia (1),
ESA varies by state but is often tied in some way to funding
Indiana (1), Louisiana (2), Maine (1), Maryland (1),
for public schools (e.g., a percentage of the per pupil
Mississippi (2), New Hampshire (1), North Carolina (2),
revenue for public schools).
Ohio (5), Oklahoma (1), Puerto Rico (1), Tennessee (1),
Utah (1), Vermont (1), and Wisconsin (4).
Eight states currently operate ESAs (Arizona, Florida,
Indiana, Mississippi, New Hampshire, North Carolina,
The only federally funded voucher program is the DC
Tennessee, and West Virginia), in addition to the two states
Opportunity Scholarship Program (DC OSP). The DC OSP
with tax-credit funded ESAs (Kentucky and Missouri).
is authorized by the Scholarships for Opportunities and
Results (SOAR) Act, which also authorizes funding for DC
Homeschooling
public schools and DC public charter schools. Annual
All 50 states, DC, and Puerto Rico have established
appropriations are divided evenly among these three
homeschool laws. Some states place numerous
purposes. The DC OSP served 1,835 students in private
requirements (e.g., assessment, attendance) on
schools during the 2020-2021 school year.
homeschooling, while other states have minimal or no
Tax Credits/Deductions
homeschooling requirements. In some states, homeschooled
students are able to participate in public online education
State tax credits and deductions to support private school
options, public school extracurricular or co-curricular
education take several forms. State scholarship or ESA tax
activities offered during or after school, or public school
credits reduce a corporation’s or individual’s tax lability for
classes on a part-time basis.
donations made to a third-party organization that provides
scholarships (i.e., vouchers) or ESAs to eligible students.
Rebecca R. Skinner, Specialist in Education Policy
States may establish student eligibility criteria, such as
Isobel Sorenson, Research Assistant
being a low-income student or a student with a disability, to
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Overview of Public and Private School Choice Options

IF10713


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https://crsreports.congress.gov | IF10713 · VERSION 5 · UPDATED

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