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Tennessee homeschool funding guide

Explore funding options for homeschooling in Tennessee. Learn about available programs and how to navigate the funding landscape.
Lisa Thorsen
Written byLisa Thorsen
6 min read
Key takeaways
  • Tennessee offers limited funding for homeschooling, primarily through the Individualized Education Account (IEA), which provides $7,000 to $12,800 annually for children with qualifying disabilities and an active IEP
  • Other programs like the Education Freedom Scholarship and ESA Pilot Program do not support independent homeschoolers, making the IEA the only viable funding option for homeschool expenses.

Homeschooling in Tennessee offers limited funding options. There are a few programs available, but many do not support independent homeschoolers. If your child has a qualifying disability, the Individualized Education Account (IEA) is your best bet for funding.

With approximately 40,000 homeschooled students, Tennessee has a significant homeschool community that benefits from understanding available funding options (NCES estimates, 2023). As of 2024, 12 states have enacted universal or near-universal Education Savings Account (ESA) programs, with Arizona's program alone serving over 75,000 students — making state-funded homeschooling more accessible than ever (EdChoice, 2024).

Can I get paid to homeschool in Tennessee?

Tennessee has three school choice programs, but most don’t help independent homeschoolers. The only option for covering homeschool costs is the Individualized Education Account (IEA). To qualify, your child must have a disability and an active IEP. The Education Freedom Scholarship won’t fund homeschool materials.

What funding is available for Tennessee homeschoolers?

Here’s a quick look at Tennessee’s school choice programs:

  • Education Freedom Scholarship (EFS): $7,295 yearly. This is open to all Tennessee students, but it can’t be used for homeschool expenses. You must enroll in a registered private school.
  • ESA Pilot Program: About $9,800 a year. This is only for certain counties (like Nashville and Memphis) and requires private school enrollment.
  • Individualized Education Account (IEA): Ranges from $7,000 to $12,800 yearly. This is the only program that covers homeschool costs but is limited to kids with qualifying disabilities and an active IEP.

So, if your child doesn’t have a documented disability, there’s no state funding for homeschool expenses.

Education freedom scholarship (efs) - not for homeschoolers

The Education Freedom Scholarship, created in 2025, is Tennessee’s universal school choice program. Here’s how it works:

  • Funding: $7,295 per student for the 2025-26 school year.
  • Eligibility: Open to all K-12 students in Tennessee who can attend public school.
  • The Catch: You must enroll in a registered private school (Categories I, II, or III). Homeschoolers can’t apply.

If you want EFS funds, you’ll have to switch your child to an eligible private school.

Individualized education account (iea) - the only homeschool option

The IEA is your only choice for state funding that covers homeschool expenses. But keep in mind:

  • Funding Amount: Average $7,000 statewide, around $12,788 for 2025-26.
  • Eligibility Requirements: Your child must have an active IEP with a qualifying disability, and they must have attended a Tennessee public school for the full year prior, with some exceptions.
  • Approved Expenses: You can use IEA funds for homeschool curriculum, tutoring, educational therapies, and some tech.

Remember, taking IEA funds means giving up certain rights under IDEA.

Why can't umbrella school families get funding?

Many Tennessee homeschoolers use Category IV umbrella schools, but these don’t qualify for EFS or ESA funding. Here’s a breakdown of school categories:

  • Category I: State-approved independent schools.
  • Category II: Schools run by TSSA member churches.
  • Category III: Private schools operated by specific churches.
  • Category IV: Church-related umbrella schools.

Only Categories I, II, and III are eligible for EFS funds. If you enroll in an umbrella school, you stay classified as a homeschooler, which means you can't access those funds.

Alternative funding options

Since many Tennessee homeschoolers can’t get state funding, consider these alternatives:

  • Federal Coverdell ESA: Contribute up to $2,000 per child annually. This can cover curriculum, tutoring, and supplies.
  • 529 Plan: TNStars 529 is mainly for college savings, but you can use up to $10,000 annually for K-12 tuition.
  • HOPE Scholarship: Available for homeschool graduates who meet specific ACT or course requirements.
  • Employer Education Benefits: Some employers offer educational assistance.
  • Local Scholarships: Check with local homeschool groups for grants and scholarships.

Recent legislative changes

In 2025, Tennessee’s education funding changed a lot:

  • Education Freedom Act of 2025: This law created the EFS but didn’t include homeschool expenses. It made Tennessee the 13th state with universal school choice, excluding homeschoolers.
  • First-Year Demand: 42,827 applications came in, but only 20,000 slots were available. This led to an increase in available scholarships for 2026-27.
  • Legal Challenges: The EFS is facing lawsuits.
  • Pending Legislation: New bills could change requirements for ESA students.

These changes might affect funding options in the future.

Important considerations

Here are some things to think about if you're a Tennessee homeschool family:

  • If Your Child Has an IEP: The IEA is your best option, but consider the trade-offs of waiving IDEA rights.
  • If You Want Funding But Don’t Have an IEP: You’ll need to enroll in a private school, which means giving up your homeschool status.
  • If You Want to Stay Independent: Understand that Tennessee doesn’t fund independent homeschooling. Look into federal options like the Coverdell ESA and connect with local co-ops for shared resources.

Remember, the EFS is designed for private school students, not homeschoolers. Advocacy for homeschool funding is ongoing.

The bottom line

In 2025, Tennessee expanded its school choice programs, but not for homeschoolers. The Education Freedom Scholarship excludes homeschool expenses, while the IEA is the only program that covers these costs for students with disabilities. For most homeschool families, state funding isn’t an option. Focus on federal alternatives like Coverdell ESAs and local resources to help with costs.

Frequently Asked Questions

Lisa Thorsen
Written by
Lisa Thorsen

Co-founder, BetterSchool

Lisa is the co-founder of BetterSchool and a homeschool mom of three. BetterSchool administers the largest independent homeschool community in the country — over 350,000 families across all 50 states.

When COVID hit, Lisa and her husband pulled their children out of school and hit the road. Homeschooling wasn't the plan — it was a necessity. But somewhere along the way, the family fell in love with it: the time together, the ability to tailor lessons to each child's interests, learning at their own pace, the freedom to travel, eating healthy on their own schedule, and the countless other benefits that come with homeschooling.

As they traveled, Lisa kept discovering incredible hands-on learning experiences that most homeschool families had no way of finding. She built BetterSchool to make it easy for every family to find and book the experiences that make learning come alive.

Through her community, Lisa has helped hundreds of thousands of parents navigate homeschooling, while also helping local businesses find and serve the homeschool community. She is the former managing partner of a law firm focused on business law and mergers and acquisitions — BetterSchool is her second technology startup. She holds a J.D. from California Western School of Law and a B.A. from Penn State.

Related articles

Tennessee homeschool requirements overviewHomeschooling in TennesseeUnderstanding umbrella schools in homeschoolingUnderstanding coverdell ESA for homeschoolingUnderstanding the 529 plan for homeschooling families

Table of Contents

  • Can I get paid to homeschool in Tennessee?
  • What funding is available for Tennessee homeschoolers?
  • Education freedom scholarship (efs) - not for homeschoolers
  • Individualized education account (iea) - the only homeschool option
  • Why can't umbrella school families get funding?
  • Alternative funding options
  • Recent legislative changes
  • Important considerations
  • The bottom line
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