We began writing about education scholarship accounts (ESAs) in 2016. Our original five-part series highlighted several lies we tell ourselves when it comes to ESAs: it’s free money1; the government is doing this to help homeschoolers pay for the cost of education2; ESA funds help low-income families afford homeschooling3; we’ll be able to maintain most of our freedoms4; ESAs will not affect us if we don’t take them5; and homeschoolers will be able to maintain their current level of educational quality and results.
In 2017 we wrote about two ESA bills presented in Indiana. At the time, Senator Mark Stoops “noted in the hearing that Bill Gates and Jeb Bush fund the advocacy for ESAs.”6
Both of those bills were eventually combined and passed in 2021.7
Across the nation, ESAs represent the newest iteration of voucher programs, often framed under the appealing language of “school choice.” States such as Arizona, West Virginia, Florida, and Indiana promote the flexibility these programs offer and claim they provide families with more educational options.
But what does the data show?8
There’s No Such Thing as a Free Lunch
All ESAs are funded by taxpayers. Each state uses its own funding formula, but the source of the money is the same: public funds.
In Indiana, property owners pay approximately 42 cents every tax dollar toward education.9 According to the state, “Property taxes are an ad valorem tax, meaning that they are allocated to each taxpayer proportionately according to the value of the taxpayer’s property.”
Property values are reassessed annually based on nearby home sales. In high-demand areas, higher assessed values lead to increased property taxes, which in turn generate more revenue for local schools.
Additional funding mechanisms—including referendums, levies, and federal education funds—exist in every state. The government does not generate its own money; it collects it from taxpayers.
Taxpayers across the country are increasingly dissatisfied with how those funds are being spent. Arizona, for example, saw ESA costs reach $872 million—far exceeding legislative projections and contributing significantly to a $1.4 billion budget shortfall.10, 11 In fact, ESA spending was projected to account for nearly two-thirds of the FY 2025 deficit. This outcome stands in stark contrast to earlier claims, such as the Goldwater Institute’s 2022 assertion that ESAs would ultimately save taxpayers money while increasing funding for public schools.12 Florida has experienced similar trends. ESA expenditures there have also surpassed expectations. Taxpayers paid $4.3 billion for ESAs compared to the projected $3.9 billion.13, 14 Florida lawmakers are currently debating a projected $1.4 billion deficit, with ESA spending—expected to reach $4.5 billion—among the contributing factors.15
Indiana’s ESA program, created in 2021, initially carried a cap of $10 million. In 2022, eligibility expanded to include siblings of special-needs students already participating in the program. Students with disabilities could receive up to $19,000 annually depending on their needs, while their siblings received the average daily membership (ADM) funding for their district.
This expansion created an unintended outcome: fewer students with disabilities were able to access the very program designed for them. In 2025, the legislature attempted to increase the program’s funding to $30 million, but with the state facing a $4.4 billion deficit, the bill ultimately failed.16
When education budgets fall short, school districts often turn to local referendums to fill the gap. The Indiana Coalition for Public Education reports that “over a third of Indiana’s nearly 300 school districts have put more than 270 education referendums on local ballots since 2009.”17
And who pays for those referendums?
The taxpayers.
The Government Is Not Here to Help
The number of states expanding universal access to vouchers and ESAs continues to grow.18 Education Week notes that “politicians championing them say they represent a lifeline for students trapped in underperforming schools.”
Meanwhile, the National Home Education Research Institute (NHERI) estimates there are approximately 3.4 million homeschool students in the United States. The average homeschool family spends about $600 per year per student—saving taxpayers billions of dollars annually in avoided public education costs.19
Yet the majority of students currently utilizing ESAs or vouchers were already enrolled in private schools.20
International organizations have also weighed in on the role of governments in publicly funded education systems. The United Nations Educational, Scientific and Cultural Organization (UNESCO) addressed this issue in its 2021 Global Education Monitoring Report, Regulating Public-Private Partnerships: Governing Non-State Schools—An Equity Perspective.21
The report explains:
“…this higher level of autonomy does not mean that PPP schools are exempt from complying with centrally defined curriculums, learning standards, or student admissions criteria, among other public regulations. Accountability frameworks play a strategic role in promoting that all publicly funded schools, independently of their ownership, are correctly aligned with quality standards and with the equity goals set by the government.”22
Lisa Logan outlines what this type of government oversight could look like in her article UNESCO’s Vision for School Choice.23
Ronald Reagan once famously remarked:
“The nine most terrifying words in the English language are: ‘I’m from the government and I’m here to help.’”
ESA Funds Do Not Help Low-Income Families Afford Homeschooling
Our 2024 article ESAs: Consequences All Around discusses the wide range of household incomes within the homeschooling community and highlights numerous free or low-cost curriculum options.24
Access to quality materials has never been the primary obstacle.
The real question is whether families should invite the very system they intentionally chose to leave into their homes.
History consistently shows that when government funding enters a market, prices rise. The well-known chart of U.S. consumer goods and services illustrates this clearly: sectors heavily subsidized by the government—such as healthcare and higher education—experience the steepest price increases.25 Education appears to be following the same pattern.
A Brown University study examining tuition trends found similar results. Fontana and Jennings’ 2024 working paper, The Effect of Taxpayer-Funded Education Savings Accounts on Private School Tuition: Evidence from Iowa, concluded:
“If a goal of ESAs is to extend private school access to new families, the substantial tuition increases they produce may limit access.”26
Real-world examples reinforce these findings.
In 2023, a Florida parochial school began accepting vouchers and assured families that tuition changes would be minimal. Instead, tuition for church members increased from $6,000 to $10,000 per child, while non-church members saw tuition rise from $10,000 to $12,000.
The school justified the increase by noting that the state would now contribute approximately $8,000 per student:
“If we don’t take full advantage of this funding source, we will be leaving money on the table.”27
In other words, tuition rose because government funds made it possible.
The homeschool curriculum market shows similar trends. Popular programs such as Miacademy have significantly increased their prices after becoming ESA vendors.28
Miacademy Nine-Year Pricing History:
| Year | Month of Capture | Membership:Monthly ($) | Membership:1 Year ($) | Membership: Lifetime, 1 child ($) | Membership: Lifetime, 2-4 Children ($) |
| 2018 | August | 9.95 | 98 | 219 | 449 |
| 2019 | January | 12.95 | 118 | 278 | 598 |
| 2020 | August | 19.95 | 168 | 378 | 798 |
| 2021 | January | 19.95 | 168 | 378 | 798 |
| 2022 | January | 24.95 | 216 | 468 | 1098 |
| 2023 | January | 29.95 | 288 | 668 | 1498 |
| 2024 | April | 34 | 360 | 840 | 1880 |
| 2025 | August | 42 | 460 | 1080 | 2440 |
| 2026 | March | 48 | 504 | 1,168 | 2,598 |
| 2018-2026 | March | +38.05 | +406 | +949 | +2149 |
Miacademy’s website promotes ESAs by stating:
“ESA programs give you the power to use your child’s public school education funds for private school or homeschool and can lower homeschooling costs.”
But the evidence suggests otherwise. Government funding rarely lowers prices; it typically raises them. Whether families accept ESA funds or not, the overall cost of educational services increases for everyone.
Homeschool families across ESA states are already reporting rising prices for co-ops, extracurricular programs, therapies, and enrichment classes. One veteran homeschool mother in Arizona explained:
“The flood of money has created inflation and now even those who don’t participate are paying a lot more for enrichment activities, co-ops, therapies, and music lessons. So many things are costing homeschoolers more even though they aren’t the ones receiving ESA money.”
We Will Not Be Able to Maintain Most of Our Freedoms
Every ESA program is structured differently, but they share one fundamental feature: accepting ESA funds requires families to enter into a contractual relationship with the state.
In doing so, families surrender freedoms they previously had as independent homeschoolers.
Funds may only be spent on approved vendors, approved curriculum, approved educational materials, and approved service providers. In other words, the state ultimately determines what counts as education.
ESA students must also participate in state-mandated standardized testing and comply with future policy changes attached to the program.
In many cases, accepting ESA funds also changes a family’s access to services. Once a student enrolls in an ESA program, local public schools are no longer obligated to provide services such as speech or occupational therapy. Responsibility for those services shifts entirely to the parents.
While ESA funding may cover part of those expenses, it often does not cover all of them.
The financial responsibility ultimately returns to the family.
As ESA programs expand, additional requirements—such as curriculum limitations, academic benchmarks, and testing expectations—are likely to follow.
ESAs Will Affect Us Even If We Do Not Take Them
A common argument suggests that families who decline ESA funding will remain unaffected. History suggests otherwise.
Government funding inevitably brings government regulation, and those regulations rarely remain confined to a single group.
Taxpayers frequently demand accountability for publicly funded programs. When fraud occurs, calls for increased oversight quickly follow.
While some states have implemented safeguards on ESA purchases, others have seen widespread abuse of funds.
Reported ESA purchases across the United States have included:
- Diamond rings
- Cell phones
- TVs
- Trampolines
- Payments to fictitious companies
- Parents paying themselves
- Golf simulators
- Dune buggies
- Rolex watches
- Inflatable bounce houses
- Designer purses
- Game consoles
- Jet ski rentals
- Clothing
- Hydroponic gardens
- Above-ground pools
- Gift cards
- Theme park tickets
- European vacations
- Broadway Musical Tickets
Each new scandal fuels calls for tighter controls—controls that often extend beyond ESA participants themselves.
The Proof is in the Pudding
The experience of states already implementing ESAs suggests a consistent pattern. Programs promoted as expanding educational freedom often introduce rising costs, new regulations, and increased government involvement. Homeschooling has historically flourished because families operated independently of the systems governing public education. ESAs blur that independence by tying private educational decisions to public funding. As more states adopt these programs, families must carefully consider not only the immediate financial benefits but also the long-term consequences for educational freedom.
[1] The Unintended Consequences of ESAs-Inflated Costs for All, Fewer Choices for All
https://www.iaheaction.net/the-unintended-consequences-of-esas-inflated-costs-for-all-fewer-choices-for-all/
[2] The Unintended Consequences of ESAs-Inflated Costs for All, Fewer Choices for All -Part 2
https://www.iaheaction.net/the-unintended-consequences-of-esas-inflated-costs-for-all-fewer-choices-for-all-part-2/
[3] The Unintended Consequences of ESAs-Inflated Costs for All, Fewer Choices for All -Part 3
https://www.iaheaction.net/the-unintended-consequences-of-esas-inflated-costs-for-all-fewer-choices-for-all-part-3/
[4] The Unintended Consequences of ESAs-Inflated Costs for All, Fewer Choices for All -Part 4
https://www.iaheaction.net/the-unintended-consequences-of-esas-inflated-costs-for-all-fewer-choices-for-all-part-4/
[5] The Unintended Consequences of ESAs-Inflated Costs for All, Fewer Choices for All -Part 5
https://www.iaheaction.net/the-unintended-consequences-of-esas-inflated-costs-for-all-fewer-choices-for-all-part-5/
[6] A Tale of Two ESA Bills & the Mid-Legislative Session Update https://www.iaheaction.net/a-tale-of-two-esa-bills-the-mid-legislative-session-update/
[7] Are homeschoolers taking money from public education?
https://iahe.net/money-from-public-education/
[8] Unlocking the Full Potential of ESA Expenditures: Three Policy Measures to Ensure Accountability and Flexibility
https://excelined.org/2023/10/20/unlocking-the-full-potential-of-esa-expenditures-three-policy-measures-to-ensure-accountability-and-flexibility/#:~:text=Admittedly%2C%20the%20level%20of%20detail,ultimately%20undermines%20the%20program’s%20purpose.
[9] Citizens Guide to Property Tax
https://www.in.gov/dlgf/understanding-your-tax-bill/citizens-guide-to-property-tax/
[10] The Real Cost of the Univeral ESA Voucher Program
https://grandcanyoninstitute.org/research/education/private-school-subsidies/cost-of-the-universal-esa-voucher-program-fy2025/
[11] Arizona lawmakers pass budget closing $1.4 billion deficit
https://apnews.com/article/arizona-budget-deficit-cuts-hobbs-legislature-f84e9144310146ceb0f58c742af53973
[12] Arizona’s Universal ESAs: 10 Facts You Need to Know
https://www.goldwaterinstitute.org/arizonas-universal-esas-10-facts-you-need-to-know/
[13] 2026 EdChoice Spending Share Rankings
https://www.edchoice.org/2026-edchoice-spending-share-rankings/#:~:text=1.,Ohio%20(4)
[14] Florida Continues to Drain Much-Needed Funds Away from Public Schools to Private and Home-School Students
https://www.floridapolicy.org/posts/florida-continues-to-drain-much-needed-funds-away-from-public-schools-to-private-and-home-school-students?42f82863_page=18
[15] 5 issues splitting Florida House, Senate in budget talks
https://www.tampabay.com/news/florida-politics/2026/03/10/house-senate-budget-emergency-fund-education-pay-raises/#:~:text=The%2060%2Dday%20legislative%20session,attorneys%20would%20receive%20targeted%20raises.
[16] Indiana expands school vouchers to all families, avoids cuts to K-12 budget
https://www.wfyi.org/news/articles/indiana-k-12-education-budget-2026-2027-universal-school-vouchers
[17] Referendums
https://indianacoalitionforpubliced.org/referendums/
[18] Which States Have Private School Choice?
https://www.edweek.org/policy-politics/which-states-have-private-school-choice/2024/01
[19] Homeschooling: The Research
https://nheri.org/research-facts-on-homeschooling/
[20] Most Voucher Recipients Are Wealthy Families Who Never Attended Public Schools
https://www.ncpecoalition.org/voucher-recipients
[21] Homeschooling: The Research
https://nheri.org/research-facts-on-homeschooling/
[22] Regulating Public-Private Partnerships, governing non-state schools: An equity perspective https://www.researchgate.net/publication/356915329_Regulating_Public-Private_Partnerships_governing_non-state_schools_An_equity_perspective
[23] UNESCO’s Vision for School Choice
https://lisalogan.substack.com/p/unescos-vision-for-school-choice
[24] ESAs-Consequences All Around
https://www.iaheaction.net/esas-consequences-all-around/
[25] Chart of the Day… or Century?
https://www.aei.org/carpe-diem/chart-of-the-day-or-century-8/
[26] The Effect of Taxpayer-Funded Education Savings Accounts on Private School Tuition: Evidence from Iowa
https://files.eric.ed.gov/fulltext/ED650846.pdf?fbclid=IwY2xjawQfHZdleHRuA2FlbQIxMABicmlkETFTU3pVYUpoTldqeVBrZXpZc3J0YwZhcHBfaWQQMjIyMDM5MTc4ODIwMDg5MgABHhtNx6BMTDNvgJJ7tJ5FpBZaHrd0nKT-xBAXkbn1hiFn5FCbbOoZJW6k-t8L_aem_clxHcnROJTgUAsAPbgjH3w
[27] A Florida school raised tuition because of voucher
https://www.orlandosentinel.com/2023/05/31/a-florida-school-raised-tuition-because-of-vouchers-will-more-follow/
[28] Internet Archive: Wayback Machine
https://web.archive.org/web/20260000000000*/https://miacademy.co/#pricing