Tennessee's ESA Pilot for Memphis, Nashville and Chattanooga Families: 2026-27 Amounts and Rules

Before the Education Freedom Scholarship, Tennessee's main private school choice program was the Education Savings Account pilot. It still exists, it is worth more per student than EFS, and it serves a specific group of families in three of the state's largest school systems. If you live in Memphis, Nashville or Chattanooga and your income qualifies, it may be the better fit.

The legal basis

The ESA program was created by state law at Tenn. Code Ann. §49-6-2601 and the sections after it, and it is guided by State Board of Education Rule 0520-01-16. The Tennessee Department of Education administers it.

Who it serves

The department's ESA page says the program is for eligible students zoned to attend Memphis-Shelby County Schools, Metro Nashville Public Schools, Hamilton County Schools, or a school that was in the Achievement School District on May 24, 2019. The 2026-27 comparison chart lists the other main conditions:

• Residency: a Tennessee resident zoned to one of those systems.
• Grades: entering kindergarten through grade 12.
• Income: household income for the previous year no more than twice the federal income eligibility guidelines for free lunch.
• Enrollment history: the student was in a Tennessee public school the prior school year, or is eligible to enroll in a Tennessee school for the first time, or meets one of the other history rules listed on the ESA page.
• No IEP requirement.

What it is worth in 2026-27

The ESA page lists 2026-27 award amounts by district:

• Hamilton County Schools:
  0,093.89
• Metro Nashville Public Schools:
  0,132.54
• Memphis-Shelby County Schools:
  0,132.54

The comparison chart explains the formula: the maximum annual amount is the lesser of the average TISA allocation generated by students in the zoned district or the combined statewide average of required state and local TISA allocations per pupil. Up to 50 percent of the current year's award can roll over to the next year for approved students.

When money arrives

For full-year students in 2026-27, the ESA page lists four allocations: 50 percent on August 4, 2026, 20 percent on October 1, 20 percent on January 5, 2027, and 10 percent on March 1, 2027. Families pay tuition and buy approved items through an online family wallet and marketplace, and the program posts user guides for both.

Where it can be spent

Students must enroll in a Category I, II or III non-public school. Funds pay tuition at an ESA-participating school, and the program allows other approved expenses, such as textbooks, uniforms and after-school educational programs available in the marketplace. Category IV and V schools and independent home schools are not allowed.

Applying now: the second-semester window

The full-year 2026-27 application has closed. As of this writing, the ESA page says a second-semester-only application opened September 1, 2026, and closes October 15, 2026, at 4 p.m. CT. The second-semester award is half of the full-year amount, and students begin attending in January 2027. Related deadlines on the program calendar include November 16, 2026, for school enrollment verification and December 15, 2026, for account holder contracts and expense budgets.

How many students use it

The department's 2025-26 ESA annual report says 4,766 students were enrolled in a non-public school and used an ESA that year, including 87 seniors who graduated. It also reports that 251 students used an ESA during the year but withdrew before the end, by enrolling in a public school, a Category IV or V school, moving out of state or for other reasons.

Testing and accountability

The annual report notes that state law required participating ESA students in grades 3 through 11 to take the TCAP tests in math and English language arts. The department publishes school-level results in its annual reports. If you are choosing a school, ask how it supports students taking the TCAP, since many private schools normally use a different standardized test.

For schools and providers

Schools apply separately to participate in the ESA program, and the ESA schools page says the school application for the second semester of 2026-27 closes November 2, 2026. Service providers must complete the program's background and fingerprinting process.

ESA, EFS or both?

A student can apply for both ESA and EFS but can participate in only one program in a school year. The ESA award is larger in 2026-27, but income and zoning limits apply. ESA-eligible students also fall into Priority 2 for EFS, which helps if the ESA does not work out.

When a student turns 18

The ESA page explains that once a student turns 18, either the student becomes the account holder or the parent must provide a notarized power of attorney signed by the student or a conservatorship order. The department offers an optional limited power of attorney template and an age of majority form.

Students with disabilities

The ESA does not require an IEP, but a student with a disability who uses an ESA attends a private school by parental choice. Ask any school you are considering what support it can provide, and compare with the IEA, which is designed for students with qualifying disabilities and allows a wider range of school options.

A family deciding

Danielle, a single mother in Antioch with two children in Metro Nashville schools, earns under twice the free lunch guideline. She missed the full-year ESA window but applied in the second-semester window in September for her middle schooler, who would move to a small Category II school in January. She budgeted around the half-year award and the spring disbursement dates.

(A composite example — names and details are illustrative, drawn from situations homeschool families commonly describe.)

Checklist

• Confirm your zoned district or former ASD school.
• Check income against twice the free lunch guideline for your household size.
• Pick a participating Category I, II or III school and confirm it accepts ESA.
• Watch the October 15, November 16 and December 15 dates on your education calendar.
• Compare with EFS in our EFS guide and find service providers in our vendor directory.

My Learning Source is an independent marketplace and is not affiliated with the Tennessee Department of Education, the Tennessee State Board of Education, the Education Freedom Scholarship Program, the ESA or IEA programs, or any Tennessee school district. Amounts, deadlines and eligibility rules are set each year — confirm details with the ESA program before you apply. Family examples are composites, not real individuals.