School Freedom Act of 2026

(a) Account creation

(1) In general. The Secretary of the Treasury shall establish a savings account to be known as a School Freedom Account on behalf of an eligible individual—

(A) in the case of an eligible individual who is enrolled in an elementary or secondary school on the date of enactment of this Act or will become eligible to enroll in such a school in less than 60 days after the date of enactment of this Act, 30 days after the date determined by the Secretary of Education under section 2(a); or

(B) in the case of an eligible individual who is not enrolled in an elementary or secondary school on the date of enactment of this Act and will not become eligible to enroll in such a school until at least 60 days after the date of enactment of this Act, 60 days prior to the date that such individual is eligible to attend an elementary school.

(2) Authority to collect information. The Secretary of the Treasury shall take such steps as may be necessary, including issuance of regulations if needed, to establish a process to collect the information necessary to determine whether an individual is eligible for a School Freedom Account under paragraph (1).

(b) Federal deposits

(1) In general. For each school year beginning on or after July 1, 2027, in addition to any amount deposited pursuant to paragraph (3), the Secretary of the Treasury shall deposit into each School Freedom Account an amount equal to the per-pupil Federal expenditure applicable to an eligible individual for the school year, as determined under paragraph (2).

(2) Per-pupil Federal expenditure

(A) First year of program. The per-pupil Federal expenditure applicable to an eligible individual for the first school year that begins on or after July 1, 2027, shall be equal to—

(i) the sum of the total amount of Federal funds appropriated to carry out this section for fiscal year 2027 and any amounts made available under section 2(d); divided by

(ii) the total number of eligible individuals counted for such school year.

(B) Subsequent years. The per-pupil Federal expenditure applicable to an eligible individual for any school year after the year described in subparagraph (A) shall be equal to—

(i) the total amount of Federal funds appropriated to carry out this section for the fiscal year that corresponds to such school year; divided by

(ii) the total number of eligible individuals counted for such school year.

(3) Children with a disability. For each school year beginning on or after July 1, 2027, in addition to the amount deposited pursuant to paragraph (1), the Secretary of the Treasury shall deposit into each School Freedom Account established on behalf of an eligible individual who is a child with a disability—

(A) for the school year beginning on July 1, 2027, $2,000; and

(B) for each subsequent school year, the amount determined under this paragraph for the preceding school year, increased by the percentage increase in the Personal Consumption Expenditures price index (as published by the Bureau of Economic Analysis) for the 12-month period ending on December 31 of the previous calendar year.

(4) Classification. Funds deposited into a School Freedom Account pursuant to this subsection shall be classified as Federal SFA Funds.

(c) Parental deposits

(1) In general. Not later than 30 days after the date determined by the Secretary of Education under section 2(a) and consistent with the provisions of section 530B of the Internal Revenue Code of 1986, the Secretary of the Treasury shall issue regulations establishing how a parent of an eligible individual with a School Freedom Account may deposit funds into such School Freedom Account, including how such a parent may make such a deposit as a pre-tax payroll deduction.

(2) Classification. Funds deposited into a School Freedom Account in accordance with regulations issued pursuant to paragraph (1) shall be classified as Parental SFA Funds.

(d) State deposits

(1) In general. Not later than 30 days after the date determined by the Secretary of Education under section 2(a), the Secretary of the Treasury shall issue regulations establishing how States may deposit funds into a School Freedom Account.

(2) Preemption. Except as provided in section 4(a)(4), no State may establish any restrictions or conditions on how funds deposited by the State into a School Freedom Account may be spent.

(3) Classification. Funds deposited into a School Freedom Account in accordance with regulations issued pursuant to paragraph (1) shall be classified as State SFA Funds.

(e) Availability of funds

(1) In general. Not later than 30 days after the date determined by the Secretary of Education under section 2(a), the Secretary of the Treasury shall issue regulations establishing how a parent of an eligible individual with a School Freedom Account—

(A) notifies the Secretary of the Treasury that the individual is or is not attending a public elementary or secondary school for a school year;

(B) in the case of a parent who elects to have the individual attend a public elementary or secondary school for a school year—

(i) approves the disbursement of the annual amount of Federal SFA Funds disbursed to the School Freedom Account pursuant to paragraphs (1) and (3) of subsection (b) to the local educational agency serving the school attended by the individual for use in accordance with subsection (f)(2); and

(ii) may access any Parental SFA Funds and State SFA Funds in the School Freedom Account to pay for the educational expenses of the individual in accordance with subsection (f)(1);

(C) in the case of a parent who elects to not have the individual attend a public elementary or secondary school for a school year, may access any Federal SFA Funds, Parental SFA Funds, and State SFA Funds in the School Freedom Account to pay for the educational expenses of the individual in accordance with subsection (f)(1); and

(D) may submit an application to the Secretary of the Treasury to be issued a payment card connected to the School Freedom Account by the Secretary of the Treasury.

(2) Default disbursement. In the case that a parent of an eligible individual with a School Freedom Account fails to notify the Secretary of the Treasury that the individual is not attending a public elementary or secondary school for a school year or fails to approve the disbursement of Federal SFA Funds from the School Freedom Account to the local educational agency serving the school attended by the individual as required under regulations issued pursuant to paragraph (1), the Secretary of the Treasury shall disburse the annual amount of Federal SFA Funds disbursed to the School Freedom Account pursuant to paragraphs (1) and (3) of subsection (b) to the local educational agency serving the last known address of the individual.

(3) Rule of construction. Nothing in this subsection, including the regulations issued under paragraph (1), shall be construed to restrict or otherwise inhibit interdistrict enrollment.

(f) Uses of funds

(1) In general. Funds deposited into a School Freedom Account (except for Federal SFA Funds required to be disbursed to a local educational agency under regulations established pursuant to subsection (e)) may be used to pay for—

(A) books, curricular material, and other instructional materials, including curriculum materials designed for a home school;

(B) technological educational materials;

(C) online educational materials;

(D) tutoring or educational classes outside the home, including instruction as part of a micro school or learning pod;

(E) private school tuition;

(F) extracurricular activities;

(G) testing fees;

(H) a licensed or accredited paraprofessional or educational aide;

(I) tuition for vocational or life skills education;

(J) costs associated with an annual education plan conducted by an independent evaluation team;

(K) tuition or fees for a non-public online learning program;

(L) services provided by a public school, including individual classes and extracurricular programs;

(M) uniforms purchased from or through a school;

(N) educational or learning diagnostic tools;

(O) educational therapies for a child with a disability;

(P) educational and psychological evaluations;

(Q) assistive technology rentals; or

(R) braille translation goods and services.

(2) Public school funds. Federal SFA Funds disbursed from a School Freedom Account to a local educational agency under regulations established pursuant to subsection (e) may be used by such local educational agency for any educational purpose authorized under the laws of the State in which such local educational agency is located.

(g) Limitation. The Secretary of the Treasury may not require that—

(1) individuals obtain preapproval prior to the expenditure of amounts from a School Freedom Account; or

(2) the expenditure of amounts from a School Freedom Account be through a specific marketplace or portal.