Idaho rolls out $50 million program so parents can afford private school

Court clears Idahos school choice program

Idaho’s new private school tax credit is moving forward after surviving a court challenge.

The Idaho Supreme Court ruled unanimously on Feb. 5, 2026, that the Parental Choice Tax Credit does not violate the state constitution.

A group that included the Idaho Education Association and the Moscow School District had argued the program takes money away from public schools.

Chief Justice G. Richard Bevan wrote the opinion, and all five justices agreed. The state is now accepting applications through March 15.

Lawmakers created the program last year

Gov. Brad Little signed House Bill 93 on Feb. 27, 2025, making it Idaho’s first private school choice program. The bill passed the House 42-28 and the Senate 20-15.

An emergency clause made it retroactive to Jan. 1, 2025, so families could start using it right away. Rep. Wendy Horman, Senate Majority Leader Lori Den Hartog, and House Majority Leader Jason Monks sponsored the bill.

Both sides fought hard over the bill

The debate got intense. The House Revenue and Taxation Committee received more than 1,000 emails on the bill, and about 94% opposed it.

Seventy-three public school superintendents wrote to the governor with concerns. Little acknowledged the bill lacked enough accountability but signed it anyway.

Supporters argued parents deserve the freedom to direct tax dollars toward the education that fits their kids best.

President Donald Trump publicly backed the bill in February 2025.

Families can get up to $5,000 per student

The program offers a refundable tax credit of up to $5,000 per K-12 student between the ages of 5 and 18. Students aged 5 to 21 with qualifying disabilities can get up to $7,500.

The whole program caps out at about $50 million a year. Credits go directly to parents, guardians, or foster parents, not to schools.

One big catch: students enrolled in public schools cannot use it.

The credit covers tuition and more

The money covers private school tuition and fees, including newer setups like microschools and learning pods. Families can also use it for textbooks, curriculum, and other educational materials.

Tutoring in core subjects like English, math, science, and social studies qualifies too, along with prep courses and fees for standardized tests.

Some transportation costs tied to private education also count. The credit cannot go toward non-academic extras like sports or clubs.

Lower-income families go to the front

Not everyone gets funded at the same time.

Families earning at or below 300% of the federal poverty level get first priority. For a family of four, that works out to roughly $94,000 a year.

In the first year, lower-income families go through on a first-come, first-served basis, while higher-income families land on a waitlist.

In future years, returning recipients move to the front of the line, followed by new lower-income applicants.

Thousands applied on day one

Applications opened on Jan. 15, 2026, and demand came fast. More than 3,300 families applied on the first day alone.

By late January, the Idaho State Tax Commission had received over 4,500 applications covering more than 8,300 students. By Feb. 5, those numbers climbed to more than 5,000 applications for over 9,300 students.

At $5,000 per student, that early rush suggests the $50 million cap could be nearly tapped out.

Heres how to apply before March 15

Parents apply online through the Idaho State Tax Commission’s Taxpayer Access Point system.

To qualify, applicants must have filed a 2024 Idaho Form 40 tax return listing their children as dependents. Both the parent and child must be full-time Idaho residents.

Parents need to keep receipts for all qualifying expenses paid in 2025. The Tax Commission will let families know by April 15, 2026, whether they received the credit.

Critics say accountability is missing

Even the governor admitted the bill lacked enough oversight before he signed it. Critics pointed out that the program does not require background checks for private school staff.

Private schools getting the funds do not have to follow state laws that protect students with disabilities. There are no required measurements for student outcomes, either.

Schools must hold accreditation or maintain a learning portfolio in four core subjects, but the state does not check the quality of that instruction.

The court left room for future challenges

Justice Gregory Moeller wrote a separate opinion stressing that the ruling should not be read as a broad shift. He noted that the constitutional foundation for public education remains intact.

Because the challengers brought their case before any credits had gone out, the court considered the harms hypothetical.

Moeller wrote that lawmakers and courts may revisit the law’s impact once real effects can be measured.

The challengers said they will keep advocating for public schools.

Rural communities worry the most

Critics have argued the program could hit rural areas hardest, where private school options are limited or do not exist at all. The Idaho Center for Fiscal Policy warned rural students and schools stand to lose the most.

Opponents noted Idaho already spends less per student than any other state. Similar programs in other states have seen costs grow well past their original caps.

Around the same time, a district court judge in Utah struck down that state’s similar program on comparable grounds.

Applications close March 15

The application window shuts on March 15, 2026.

The Tax Commission will notify families of their award status by April 15. If funds remain after the first round, the process may reopen.

The law also tells the Tax Commission to keep a waitlist showing who would qualify if lawmakers raise the annual cap. Both supporters and opponents expect this program to be a major topic in future legislative sessions.

This article was created with AI assistance and human editing.

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