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LC 902

Revise laws to expand education savings accounts to all students

2025 Regular Session

Expands education savings accounts to all K–12 students, enabling state funds to be used for a broad range of education options beyond traditional public schools.

(LC) Draft Died in Process
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Bill Summary · LC 902

Legislative Bill Summary: LC 902 — Revise laws to expand education savings accounts to all students

Overview

LC 902 is a draft bill that proposes expanding education savings accounts (ESAs) to include all students in the state. The bill aims to broaden access to public funds that families could use for education-related expenses outside the traditional public school system. The draft status has moved through several pauses and is currently listed as having died in process.

Purpose and Intent

  • Expand eligibility for education savings accounts from a narrower group to all enrolled students.
  • Promote school choice by allowing families to use state-supported funds for a broader set of eligible educational options.
  • Provide families with more flexibility to choose or customize their child’s education, including services or programs not offered by traditional public schools.

Key Provisions (High-Level)

  • Eligibility: The bill would extend ESA eligibility to all students in the state (K–12), rather than restricting access to a subset of students.
  • Funding and Accounts: Establish or continue a mechanism for state funds to be deposited into individual ESA accounts for eligible students, to be used for qualified educational expenses.
  • Qualified Expenditures: Allowable uses of ESA funds would be tied to education-related services and programs outside standard public school enrollment (e.g., private schooling, tutoring, curriculum, online courses, transportation, or related services). The exact list and definitions would be defined in the bill.
  • Governance and Oversight: Provisions would address program administration, accountability measures, and safeguards against fraud or misuse.
  • Compliance and Accountability: Implement standards for tracking expenditures, reporting, and ensuring funds are used for approved educational purposes.

Affected Parties

  • Students and Families: Would gain access to ESA funds for a wider range of educational options.
  • Public Schools: Potential shifts in enrollment and funding dynamics as families pursue alternative options.
  • State Education Agencies: Responsible for administering ESA programs, account management, and compliance enforcement.
  • Service Providers: Private schools, tutors, curriculum vendors, online programs, and transportation providers that participate in ESA-funded activities.

Procedural History and Timeline

  • Introduced: November 6, 2024
  • Drafter Assigned: November 6, 2024
  • Status Updates:
    • November 17, 2024: Draft On Hold
    • May 23, 2025: Draft Died in Process
  • Current Status: Died in Process (LC draft), meaning the measure did not advance in its current iteration.

Potential Impact and Considerations

  • Fiscal: Expanding ESAs would require state funding commitments and budgeting implications; costs and funding mechanisms would be defined in the bill.
  • Access and Equity: The policy could increase educational options for families but may also raise questions about funding distribution and impact on public school resources.
  • Implementation: Success would depend on clear definitions of eligible expenditures, robust oversight, and practical administration of ESA accounts.

Next Steps (If Reintroduced)

  • A new sponsor could reintroduce the measure in a future session.
  • The bill would proceed through committee hearings, fiscal analysis, and amendments.
  • Stakeholder engagement (parents, educators, districts, and providers) would shape the final language.

Note: This summary reflects the information provided. Specific statutory language and final provisions would determine the bill’s exact scope and impact.

Compiled from official sources — confirm details with the bill’s official record.

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