Tennessee operates three school choice programs created at different times to serve distinct groups of students. This guide explains each and clarifies how they differ so families can more easily see which one may be the best fit.

Three Programs, Three Purposes

Tennessee’s three account‑based school choice programs are the Education Savings Account (ESA), the Individualized Education Account (IEA), and the Education Freedom Scholarship (EFS). All three provide funding for defined education costs, but each has its own eligibility rules and spending limits.

Quick Comparison

At a glance, here’s how the three programs differ:

• ESA supports students in a small number of specific districts who are eligible to enroll in a Tennessee public school and who meet income requirements.

• IEA serves students with qualifying disabilities who have an active Individualized Education Program (IEP).

• EFS is statewide, open to most K–12 students, and capped at 20,000 scholarships in its first year.

Education Savings Account (ESA) Program

The ESA Program operates only in a few districts, including parts of Memphis and Nashville. Students must live in one of these districts and meet rules related to prior attendance at a public school and family income limits.

If a student qualifies, funds from an ESA can pay for private‑school tuition and other approved learning expenses at participating schools. ESA was designed to help families in districts where public schools have struggled. Because it’s limited by geography and income, only a small share of Tennessee families qualify.

Individualized Education Account (IEA) Program

IEA is for students with certain disabilities. To qualify, a student must meet Tennessee’s public‑school eligibility rules, have a qualifying disability listed in state law, and maintain an active IEP at the time of application.

Families can use IEA funds for approved education costs, including:

• Private‑school tuition

• Therapies and related services

• Specialized curriculum and learning materials

• Approved educational technology

• Certain home‑based or umbrella‑school services

IEA offers families the most flexibility, with the broadest range of eligible expenses. It’s designed to help students with disabilities get the mix of schooling and support that best fits their needs.

Education Freedom Scholarship (EFS)

EFS is Tennessee’s newest and largest scholarship program. Starting in 2025–26, any K–12 student who can attend a Tennessee public school may apply. The program is statewide, but only 20,000 scholarships are available in the first year—10,000 with income limits and 10,000 without.

To use EFS, a student must:

• Live in Tennessee

• Be eligible for public school

• Enroll in a Category I, II, or III private school

Each scholarship is roughly $7,300 per year. Tuition and required school fees are paid first. If funds remain, families may use them for approved items such as curriculum, tutoring, therapies, technology, and certain transportation costs.

EFS doesn’t replace ESA or IEA—it adds a new statewide option without district limits or prior public‑school enrollment requirements.

How ESA, IEA, and EFS Fit Together

Tennessee’s three programs evolved at different points to meet distinct needs. IEA came first and was built for students with disabilities. ESA followed to serve families in designated districts. EFS is the newest program and is open to eligible students statewide. Students can participate in only one program at a time; funds can’t be combined.

In practice:

• Families in ESA districts may compare ESA and EFS.

• Families with a qualifying disability may compare IEA and EFS.

• Families outside ESA districts who don’t meet disability rules will focus on EFS and other public‑school choice options.

Where Families Can Check Eligibility or Apply

The Tennessee Department of Education website includes separate pages for ESA, IEA, and EFS, with instructions, timelines, and rules. The state also offers a comparison chart showing all three programs on a single page so families can quickly compare options.