Spending rules

What EFS, ESA and IEA money can pay for in Tennessee

Tennessee's three programs all start with tuition, then differ on almost everything else. Here is each category, program by program, as TDOE describes it for 2026-27 — with the gaps marked rather than guessed.

Last verified: October 2026

Sources. EFS rules come from TDOE's EFS FAQs and 2026-27 program timeline; ESA and IEA entries come from TDOE's 2026-27 School Choice Programs Comparison, ESA pages and the October 2026 ESA annual report. "Check the handbook" means TDOE's public pages we reviewed did not settle that category.

Allowed or not: the three Tennessee programs side by side (2026-27)
Expense	Education Freedom Scholarship	ESA (MNPS zone)	IEA (IEP required)
Tuition and required fees	Must be paid first, at an EFS-registered Category I, II or III school	Yes, at an approved participating Category I-III school	Yes, at a participating Category I-V school
Textbooks, curricula and instructional materials	Yes, at the school where the student is enrolled	TDOE lists textbooks among ESA expenses at participating schools	Approved curricula are an IEA use, including for homeschoolers
Uniforms	Yes, at the enrolled school; delivery must be confirmed in the portal	Yes, through the Marketplace	Check the IEA handbook
Tutoring	Yes, by a Tennessee-licensed teacher or an agency accredited by a group named in SBE rule	Check the ESA handbook	Yes
Summer and specialized after-school academic programs	Tuition, books and materials for approved programs — not child care	After-school educational programs are offered in the Marketplace	Check the IEA handbook
Educational therapies	Yes, from a department-approved licensed therapist	Check the ESA handbook	Yes, educational therapies are an IEA use
Computer or tablet	Only after tuition and fees are paid: one device per student per year, bought through the Marketplace at or below fair market value	One laptop or tablet once every 3 calendar years in pilot districts including Davidson, shipped to the school	Needs pre-approval; the same item once every 2 years
Internet service and stand-alone software	No (software bundled into an approved expense is allowed)	Check the ESA handbook	Check the IEA handbook
Transportation to school	Only a commercial fee-for-service provider such as a bus — not parent driving	Check the ESA handbook	Check the IEA handbook
Dual-enrollment fees, AP/college-entrance exams and industry credentials	Yes, as approved by TDOE	Check the ESA handbook	Check the IEA handbook
Online learning programs	Only at an EFS-registered school with a Tennessee campus	The Middle Tennessee ESA list includes online schools	Yes, approved online learning programs
Independent homeschool costs	No	No	Yes
School lunches and consumable supplies	Not listed as an allowed use	Not approvable, per TDOE's ESA annual report	Check the IEA handbook
Child care, before- and after-care	No — EFS cannot pay for after-school or summer child care	No	No

What can the Education Freedom Scholarship pay for besides tuition in Nashville?

After tuition and required fees are covered, EFS money can pay for textbooks, curricula and uniforms at the enrolled school, approved summer and after-school academic programs, tutoring by a Tennessee-licensed teacher or accredited agency, educational therapies, commercial transportation to school, early postsecondary and exam fees, and, once tuition and fees are paid, one computer or tablet a year bought through the Marketplace.

The ESA is different: in pilot districts including Davidson County it can buy a laptop or tablet once every three calendar years, shipped to the school. The IEA needs pre-approval for a device, and the same item once every two years.

It cannot pay for internet service or stand-alone software, and it never pays for child care.

When does the EFS Marketplace open and close in 2026-27?

TDOE projected the 2026-27 Marketplace launch for October 19, 2026 for students with no pending tuition. It closes for technology and uniform purchases on April 30, 2027 at 4 p.m. Central, and for all remaining products and services on June 25, 2027.

Families have to confirm receipt of technology and uniform deliveries in the portal.

What happens to unspent EFS money?

Unspent EFS funds stay available to the student in later years, under the Unused Funds section of the EFS handbook. They are forfeited if the student leaves the program for any reason, including graduation.

If a student withdraws from a school mid-year, the school must refund prepaid tuition covered by EFS.

Can a Nashville family use the IEA for things EFS won't cover?

Often, yes. The IEA's listed uses include approved curricula, online learning programs, tutoring and educational therapies, and it can fund independent homeschooling, which EFS cannot.

The trade-off is eligibility: the IEA requires an active Tennessee IEP in an eligible disability category.

Want a plan for the money left after tuition?

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