Overview of Public and Private School Choice Options

Overview of Public and Private School Choice Options

Updated February 29, 2024
Overview of Public and Private School Choice Options
School choice generally refers to the opportunity for parents
According to a 2022 comparison of state intradistrict and
to select an elementary or secondary school for their child
interdistrict polices, 46 states, the District of Columbia, and
that differs from the assigned school that the child would
Puerto Rico have at least one open enrollment policy—27
otherwise attend based on where the family lives. School
states, the District of Columbia, and Puerto Rico have
choice is often divided into two major categories—public
intradistrict enrollment policies, and 43 states have
school choice and private school choice. Both types of
interdistrict enrollment policies. Depending on the state, the
school choice programs have proponents and opponents,
policies may be mandatory, voluntary, or both, for LEAs.
and both have garnered substantial congressional interest.
For example, a state might require mandatory intradistrict
This In Focus provides an overview of the various types of
choice in certain LEAs (e.g., choice for students in low-
public and private school choice options that exist and,
performing schools or LEAs) but allow it to be voluntary in
when applicable, highlights federal programs that directly
other LEAs. Alabama, Alaska, Maryland, and North
support choice. It also discusses homeschooling as a school
Carolina are the only states that do not have an explicit
choice option. The In Focus does not evaluate the pros and
open enrollment policy.
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 Enrollment Patterns
school choice. This is one option for serving students
Based on the most recent data available, enrollment in
attending public schools that have been identified under
public and private elementary and secondary schools and
ESEA educational accountability requirements as being
homeschools changed during the COVID-19 pandemic.
underperforming schools.
Prior to the pandemic, public school enrollment was 50.8
million in fall 2019. It fell by 1.4 million (2.8%) to 49.4
Charter Schools
million in fall 2020 and remained flat in fall 2021. In fall
Charter schools are public school options, and thus do not
2022, there were 49.6 million children enrolled in public
charge tuition. Each state’s charter school law asserts the
schools. In fall 2019, the number of children enrolled in
requirements for establishing and operating a charter school
private schools was 5.5 million and remained flat in fall
in the state, including which entities may serve as charter
2021. In 2019, 2.8% of students were homeschooled.
school authorizers. Students have to apply to a charter
According to Census survey data, this increased to about
school to gain admission. Charter schools often use lotteries
5.4% in spring 2020 and to 11.1% in fall 2020.
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 the District of Columbia have
financial considerations, also may be able to choose to live
charter school laws. (The states without charter school laws
in areas where they want their children to attend schools.
are Montana, Nebraska, North Dakota, South Dakota, and
Vermont.) As of the 2021-2022 school year, 7,847 charter
Intradistrict and Interdistrict Public School Choice
schools were in operation, serving 3.7 million students.
Many states operate intradistrict and/or interdistrict public
The Charter Schools Program authorized by the ESEA
school choice programs, which are often referred to as open
provides funds to eligible entities to support the
enrollment policies. Under the intradistrict programs,
development, implementation, and replication of “high-
students may choose among some or all of the public
quality” charter schools and assist with facilities financing.
schools in a given local educational agency (LEA). Under
the interdistrict programs, students may choose among
Magnet Schools
public schools in different LEAs. Intradistrict and
Magnet schools generally operate as a specialized form of
interdistrict public school choice programs differ among
intradistrict school choice. They are designed to attract a
states based on many factors, including whether the
more diverse student body from across an LEA. To achieve
programs are voluntary or mandated by the state, whether
this, magnet schools offer programs (e.g., engineering, arts)
transportation to the new school is provided, and whether
that will be attractive to students who live outside of the
the state sets priorities for districts to follow in admitting
traditional boundaries of the magnet school. By attracting
students (e.g., sibling preference; preference to students
students from across the LEA, it may be possible to alter
attending low-performing schools; preference to increase
the racial composition of a school. During the 2021-2022
racial, ethnic, or economic diversity).
school year, there were 3,015 magnet schools in operation,
serving 2.2 million students.
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Overview of Public and Private School Choice Options
The ESEA authorizes the Magnet Schools Assistance
To receive an ESA for a child, a student’s parent must agree
Program, which provides grants to LEAs that are
not to enroll the child full-time in a public school. In
functioning under a court-ordered desegregation plan or
addition, the student must meet program eligibility
have voluntarily adopted a federally approved
requirements, which may be based, for example, on having
desegregation plan to establish and operate magnet schools.
a disability or attending a low-performing public school.
The amount of annual funding provided through an ESA
Private School Choice Options
varies by state but is often tied in some way to funding for
Some families choose to enroll their children in private
public schools (e.g., a percentage of the per pupil revenue
schools by paying out-of-pocket, including using funds
for public schools).
available from a 529 plan or Coverdell account, which
provide tax benefits that are not discussed in this In Focus.
Based on data available in February 2024, nine states
Financial support for private school choice may also be
currently operate state-funded ESAs (Arizona, Florida,
available through voucher or scholarship programs, tax
Indiana, Iowa, Mississippi, New Hampshire, North
credits or deductions, or education savings accounts
Carolina, Tennessee, and West Virginia) and four other
(ESAs). According to Ed Choice, a school choice advocacy
states plan to begin operating programs in 2024 (Arkansas,
organization, based on data available in February 2024, at
Montana, South Carolina, and Utah).
least one form of private school choice is offered in 32
Tax Credits/Deductions
states, the District of Columbia, and Puerto Rico.
State tax credits and deductions to support private school
Vouchers
education take several forms. State scholarship or ESA tax
Voucher, or scholarship, programs use public funds to
credits reduce a corporation’s or individual’s tax lability for
finance student attendance at private schools. Payments are
donations made to a third-party organization that provides
made directly from the government to a parent, or to an
scholarships (i.e., vouchers) or ESAs to eligible students.
institution on behalf of a parent, that are then used to
States may establish student eligibility criteria, such as
support student attendance at a private school. The majority
being a low-income student or a student with a disability, to
of voucher programs have been implemented at the state or
benefit from these scholarships or ESAs.
local levels. Participation in a voucher program may be
Individual state tax credits reduce an individual’s tax
limited to certain students, such as those from low-income
liability based on educational expenses for household
families, those with disabilities, those attending low-
dependents. Individual state tax deductions provide a
performing schools, those residing in an LEA that does not
reduction in taxable income based on educational expenses
have a public elementary or high school (these situations
for household dependents that is determined prior to the
are referred to as town tuitioning programs), or those with
calculation of tax liability for the household. Individual tax
some combination of these or other characteristics. Voucher
credits/deductions are available for a variety of purposes,
programs may also establish minimum standards, such as
such as tuition, textbooks, and uniforms.
student testing requirements, that private schools must meet
in order to participate in the program. Based on data
Based on data available in February 2024, 22 states
available in February 2024, 14 states and Puerto Rico
currently offer scholarship tax credits: Alabama (1
currently operate at least one state or local voucher
program), Arizona (4), Arkansas (1), Florida (1), Georgia
program: Arkansas (1 voucher program), Georgia (1),
(1), Illinois (1), Indiana (1), Iowa (1), Kansas (1), Louisiana
Indiana (1), Louisiana (2), Maine (1), Maryland (1),
(1), Montana (1), Nebraska (1), Nevada (1), New
Mississippi (2), New Hampshire (1), North Carolina (1),
Hampshire (1), Ohio (1), Oklahoma (1), Pennsylvania (2),
Ohio (5), Oklahoma (1), Puerto Rico (1), Utah (1), Vermont
Rhode Island (1), South Carolina (1), South Dakota (1),
(1), and Wisconsin (4).
Utah (1), and Virginia (1). The first ESA tax credit
programs were launched in 2021 and are currently offered
The only federally funded voucher program is the DC
by two states: Florida and Missouri. (Kentucky previously
Opportunity Scholarship Program (DC OSP). The DC OSP
offered an ESA tax credit.) In addition, seven states
is authorized by the Scholarships for Opportunities and
currently offer education tax credits (Alabama, Illinois,
Results (SOAR) Act, which also authorizes funding for DC
Iowa, Minnesota, Ohio, Oklahoma, and South Carolina);
public schools and DC public charter schools. Annual
four states offer education tax deductions (Indiana,
appropriations are divided evenly among these three
Louisiana, Minnesota, and Wisconsin).
purposes. The DC OSP served 1,707 students in 38 private
schools during the 2022-2023 school year.
Homeschooling
All 50 states, DC, and Puerto Rico permit homeschooling.
State-Funded Education Savings Accounts
Some states place numerous requirements (e.g., assessment,
ESAs were first established in 2011 as a vehicle for
attendance) on homeschooling, while other states have
providing public funds for educational purposes to eligible
minimal or no homeschooling requirements. In some states,
students. ESAs are state-funded individual accounts that are
homeschooled students are able to participate in public
controlled by parents and used to purchase educational
online education options, public school extracurricular or
services. Unlike vouchers, which are used specifically to
co-curricular activities offered during or after school, or
support private school attendance, ESA funds can generally
public school classes on a part-time basis.
be used for a variety of education-related expenses, such as
tutoring, textbooks, private school tuition and fees, online
Rebecca R. Skinner, Specialist in Education Policy
courses, or community college courses.
Isobel Sorenson, Research Assistant
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Overview of Public and Private School Choice Options

IF10713

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https://crsreports.congress.gov | IF10713 · VERSION 8 · UPDATED