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EDUCATION FREEDOM ACCOUNTS EXPLAINED 

 

On June 10, 2025, Governor Kelly Ayotte signed into law SB295 - the expansion of Education Freedom Accounts (EFAs).  What does this all mean?

 

• Since 2021, EFA families earning up to 350% of the poverty line, those under $112,525 for a family of four, have been eligible to receive EFA funds to pay for educational expenses. Presently, around 5,300 students receive EFAs.

 

• Bill SB295 signed into law, expands Education Freedom Accounts to all families regardless of income, meaning all school aged children, ages 5 to 20,  will be eligible in the 2025-2026 school year to apply for an EFA to attend a private school, religious school or for homeschooling.

 

• This bill has capped the number of recipients to 10,000 students, however, when it reaches 9,000 students, it increases 25%, for a total of 12,500 students.

 

THE COST TO TAX PAYERS

• The EFA grant gives a parent, on average about $5,600 a year to pay for non-public school or home schooling. The following is the breakdown of aid provided:

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• Base Aid is the Adequacy Amount the state pays per pupil $4,265.64

• Free and Reduced-Price Meal Eligibility Aid per pupil $2,392

• Special Education Aid $2,184.84

• English Language Learner Aid $832.31

 

Total Allocated Budget for EFAs is $87.1 million (two-year budget)

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WHO OVERSEES THE EFA PROGRAM

• The New Hampshire Department of Education does NOT oversee the EFA funds.

• The Children’s Scholarship Fund is contracted by the state to administer the EFA funds. They are located in New York City  and charge a 10% service fee per EFA grant.

 

DISBURSEMENTS OF EFA FUNDS

• Parents are given a virtual Class Wallet where monies are electronically deposited  quarterly.  Parents need approval from the Children’s Scholarship Fund for tuition and purchases to be paid out of the Class Wallet accounts.

• Surprisingly, EFA funds can be used over the summer months for tutoring, tuition, education programs and “specialized education programs,” not to be confused with “Special Ed Programs.” 

• Remaining funds can be used in any way the Children’s Scholarship Fund deems appropriate no matter how questionable these expenditures seem to be. 

• Remaining funds then roll-over from year to year until high school graduation, which can create a hefty balance.

  • Following is a snapshot of expenditures made during the summer of months in the year 2022-2023, which NH taxpayers are funding.

●      Sports academy for $2,295.00; one child

●      Dance academy fees for $3,285.00; one child

●      Hockey camp for $6,000.00; 6 children

●      Mountain-Bike Park expense for $1,306.94; 4 children 

●      Horseback riding for $14,755.00 for 42 children.

●      Theater camp for $1,400.00; one child

●      Tutoring at The Bridge Community Outreach Center (this is a church) for $102,816.84; 64 children ($1,606.50 each child for two months of tutoring)

 

RECOURSE 

• Educate voters about how Education Freedom Accounts funds are being used, and how these funds take money away from Public Schools Funds.

• Vote for Legislators and Senators who support Public Schools and oppose EFAs.

• Demand an Audit of the Children’s Scholarship Fund Expenditures.

 

-- Patty Long, retired public school teacher

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