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CHOOSE Act Alabama | 2025-2026 ESA Implementation

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Industry

Education

Challenge

Distrubute $102 million to Alabama Families for education school choice

Results

In its inaugural year, the CHOOSE Act Alabama successfully expanded educational choice by distributing over $102 million to support 23,109 participating students across all 67 counties. Partnering with ClassWallet, the Alabama Department of Revenue utilized an automated digital wallet platform to process nearly 50,000 approved educational purchases while maintaining zero reported incidents of fraud.

Technology

Marketplace, Transaction Management, Digital Wallet Platform, Multiple-Purse Patented Technology

classwallet.com/alchoose/
$102
Manage Spend
23,109
Participating Students
49,518
Approved Educational Purchases
0
Reported Incidents of Fraud

“When administering and managing an education savings account program, I can’t emphasize how important a skilled and experienced partner is to the success of the program. As we collaborate with ClassWallet to implement all aspects of CHOOSE Act Alabama — from application processing, customer support, marketing, and fund distribution — the ClassWallet team and their comprehensive solutions continue to exceed our expectations.”

Cameron L. Clarke

Director, Tax Policy and Governmental Affairs Division Alabama Department of Revenue

Choose ACT Alabama

Alabama’s Education Savings Account

Alabama was the 14th state to pass legislation establishing an ESA program, with Governor Kay Ivey signing into law the Creating Hope and Opportunity for Our Students’ Education Act of 2024, or CHOOSE Act Alabama, on March 7, 2024.

For the first year, the 2025-2026 school year, the program provided over $120 million in refundable income tax credits to support the success of eligible students across the state.

The program is administered through the Alabama Department of Revenue (ALDOR) and saw interest from every corner of the state, resulting in the enrollment of more than 26,000 students across all 67 counties by the start of the 2025-2026 school year.

The Challenge

Alabama faced a tight launch timeline, a complex eligibility structure, high public demand, and the need to distribute public funds with precision and transparency.

The Solution

The program required significant support, and ALDOR contracted
ClassWallet to ensure compliance with the new law. Among other things, ClassWallet provided programmatic support and fund distribution to address the complex demands of managing individual accounts for thousands of students while maintaining transparency, security, and compliance with state regulations.

ClassWallet was chosen for its experience across 37 states, supporting the majority of the nation’s ESA programs, overseeing the distribution of more than $6 billion to 1.2 million users, and a proven track record of eliminating the administrative friction typically associated with new government programs. Based on its experience, ClassWallet established a detailed implementation plan that focused on three critical pillars: Application Design, Marketing and Outreach, and Technology. These pillars
provided the foundation for implementation for both ALDOR officials managing the program and Alabama families using it.

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The Results

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