Vouchers for Indiana students with disabilities hits record enrollment

All $10 million budgeted for Indiana's Education Scholarship Account is spoken for this school year, according to the state treasurer's office.

The funds for the Education Scholarship Account can be used for tuition to non-public schools, tutor services and even camps. The program is only open to families who leave the public school system.

Supporters of the program aim to balance services for students with disabilities, compared to their peers. When lawmakers created the program in 2021, public education advocates questioned how much oversight there would be for non-public schools and programs that would receive these dollars.

Around 1,000 students ernolled in the program in the 2024-25 school year. That's more than the 700 total students who received the grant since it was created in 2022.

State treasurer officials said the enrollment growth is a major feat for families of students with disabilities in the relatively new service program. Referrals and word of mouth led to the growth.

“The success of this program underscores the importance of empowering parents and guardians with the resources necessary to make informed decisions about their children’s education,” said Tina Kaetzel, executive director of the ESA program. “The program is growing, and it is working.”

In 2021, the state’s largest teachers’ union said education savings accounts would pull funding from traditional public schools.

“This ESA program is a voucher program with a new name and process, rebranded,” union leaders wrote in a statement. 

Advocates for traditional public education have long fought against public funds going to other options, such as public charter schools and private schools.

During the last school year, the state paid $439 million in tuition vouchers to private parochial and non-religious schools — a record for the program.

The Education Scholarship Account program now extends to siblings of qualifying students who have disabilities. This comes after state lawmakers passed a law that grants ESA benefits to those siblings even if they don’t have a disability or Individualized Education Plan.

The program now serves 862 students and 156 siblings, the state treasurer's office said.

During the 2024 legislative session, a Republican lawmaker said he wanted to overhaul how programs like ESAs and vouchers are managed. Lawmakers said they will revisit that proposal during the 2025 budget session.

Rachel Fradette is the WFYI Statehouse education reporter. Contact Rachel at rfradette@wfyi.org.