Education funding in Tennessee
4 programs in Tennessee, 1 open to homeschoolers. Each links to the program’s official sources.
Individualized Education Account (IEA) Program
Homeschoolers can qualify From official sources October 7, 2026
Yes, with conditions. Students with a qualifying disability (an active IEP from a Tennessee public school district naming a listed disability) can use IEA funds for independent home schooling or an umbrella (Category IV church-related) home school program. The student generally must have attended a Tennessee public school for the full school year before the IEA year, so most children already being homeschooled do not qualify; exceptions are children eligible to start kindergarten who have not attended a Tennessee public school, families who moved to Tennessee less than a year before enrolling, and students renewing an IEA. The student may no longer be enrolled in public school while in the IEA.
Dates and status: Applications for the 2026-27 contract year are closed. The 2027-28 application window is projected to open February 16, 2027. The maximum award equals the base funding allocation plus average special education funds under the state formula for the student's district.
Education Freedom Scholarship (EFS)
Not open to homeschoolers From official sources October 7, 2026
A homeschooled child can apply, but the money is only paid if the child enrolls in an EFS-registered Category I, II or III non-public school. Independent home school and Category IV or V non-public schools are not allowed.
Dates and status: The 2026-27 scholarship is $7,530. The 2026-27 application window closed February 6, 2026, and all 35,000 seats for 2026-27 were reserved; the state expanded the program by 15,000 seats in 2026. Dates for 2027-28 are not yet posted.
Education Savings Account (ESA) Pilot Program
Not open to homeschoolers From official sources October 7, 2026
No. Students must enroll in a Category I, II or III non-public school; independent home school and Category IV or V schools are not permitted. Only students zoned to Memphis-Shelby County, Metro Nashville, Hamilton County or former Achievement School District schools qualify.
Dates and status: 2026-27 full-year awards are $10,093.89 (Hamilton County) and $10,132.54 (Metro Nashville and Memphis-Shelby County). The full-year application is closed; a second-semester application runs September 1, 2026 (12 p.m. CT) to October 15, 2026 (4 p.m. CT), with half the full-year award and attendance starting January 2027.
Federal Scholarship Tax Credit (state participation)
Program doesn’t say whether homeschoolers qualify From official sources October 7, 2026 Not open yet
Not settled yet. Federal rules define eligible costs by reference to Coverdell account expenses tied to a school 'as determined under State law,' and neither the IRS notice nor the October 2026 proposed rules say whether homeschool costs qualify. Tennessee's page does not address homeschool use.
Dates and status: Tennessee has opted in and appears on the IRS list of participating states for 2027 (as of September 14, 2026). Donor credits of up to $1,700 begin January 1, 2027. Tennessee says federal regulations are not final, and its page does not yet list any scholarship organizations.