NASHVILLE, TN (WGNS News) - Tennessee’s first in‑depth review of the Education Savings Account (ESA) program is out, and it’s giving lawmakers and families a clearer picture of how the state’s school‑choice initiative is working — and where it may be falling short. The evaluation, released by the Comptroller’s Office of Research and Education Accountability, looks at the program’s first three years and raises new questions about access, equity, and whether low‑income families can realistically participate.
98K Students Eligible, Approximately 7% Applied - (See the Full Report HERE - PDF) The Education Savings Account program, launched in 2022 after court delays, provides public funds for eligible students in Memphis-Shelby County, Metro Nashville, and Hamilton County to attend approved private schools. Participation has grown to 3,693 students this school year, still below the 5,000‑student cap. Yet more than 98,000 students meet the income and residency requirements. Only about seven percent applied.
One issue quietly shaping those numbers is the cost gap between the state’s ESA award and the actual tuition charged by many private “choice” schools. The state does not cover the difference. Families must pay any remaining tuition, fees, transportation, uniforms, and other expenses out of pocket. For low‑income households — the very families the program is designed to serve — that gap can be thousands of dollars a year. Some education advocates say this financial hurdle may be one reason participation remains far below capacity, even as interest in school choice grows.
Academically, the report indicates that students using the Education Savings Account program showed improvements on their TCAP tests, but still their scoring was below public school peers overall. Tennessee's Value-Added Assessment System's (TVAAS) growth data also showed Education Savings Account students making less progress on average, though results varied widely by school.
The evaluation also found that most ESA students previously attended public schools that were not low‑performing, and many came from schools with average or above‑average grades. Memphis-Shelby County continues to account for the largest share of participants, but the findings are being closely watched in Middle Tennessee, where debates over school choice and public school funding remain front‑and‑center.
Parents who responded to state surveys reported high satisfaction, though response rates dropped sharply after the first year. Schools participating in the program said they were generally pleased but cited ongoing frustrations with the state’s online platform and communication.
The report from the Comptroller’s Office of Research and Education Accountability shows several ways the state could strengthen the program, including better outreach to low‑income families and clearer accountability measures. Lawmakers return to Nashville on Jan. 13 as the 114th General Assembly opens its 2026 session, with the budget, education, and public safety expected to dominate the agenda.
Snapshot Summary - The Tennessee Comptroller’s Office of Research and Education Accountability (OREA) has released its first required evaluation of the state’s Education Savings Account (ESA) program after three years of operation. The program, created in 2019 and launched in 2022–23 after court delays, allows eligible students in Memphis-Shelby, Metro Nashville, and Hamilton County school zones to use public funds for approved non-public schools.
OREA found that ESA participation has grown annually, reaching 3,693 students in 2024–25, but remains below the statutory cap of 5,000 despite more than 98,000 potentially eligible students statewide. Academic results show ESA students’ test scores have improved over time but generally remain below public school peers and the state average, with lower average academic growth overall.
Most participating students previously attended public schools that were not low-performing. Parent satisfaction remains high among respondents, though declining survey participation limits reliability. OREA identified opportunities to strengthen administration, outreach, data collection, and accountability, and offered recommendations and policy options for the Department of Education and the General Assembly moving forward.
