Arkansas EFA Ordinary and Necessary Expenses: The Rule That Governs Every Purchase

The Standard Behind Every Spending Decision

Every approved and rejected EFA purchase ultimately comes back to one regulatory concept: "ordinary and necessary." Under 6 CAR §§ 35-114 and 35-115, ADE evaluates whether the expense is ordinary for a recognized academic, instructional, or developmental setting and necessary to support the student's learning, development, or career readiness.

This is not a checklist you can memorize. It is a standard that ADE reviewers apply case by case when evaluating purchases, reimbursement requests, and audit findings. Understanding how they apply it helps you judge whether a purchase fits the rules before you buy.

For reimbursement requests submitted more than six months after the June 29, 2026 effective date of the current rules — after December 29, 2026 — ADE approval is required before a non-core expense is incurred.

How ADE Applies the Standard in Practice

The Family Handbook lists approved and prohibited expense categories, but it cannot anticipate every possible purchase. When a reimbursement request falls into a grey area, the reviewer applies the ordinary-and-necessary criteria:

Is this item ordinary for the student's educational setting? A laptop for a high school student taking online courses is ordinary. A gaming console is not, even if some educational games exist for it. A microscope for a biology curriculum is ordinary. A telescope for a family who occasionally looks at stars is less clear — it depends on whether astronomy is a documented part of the curriculum.

Is this item necessary for the student's coursework? A textbook required by the curriculum is necessary. A supplementary workbook that covers the same material the student has already mastered is harder to justify. Testing fees for a required annual assessment are necessary. An additional optional assessment the student takes out of interest is a weaker case.

The word "necessary" does the heavy lifting. A purchase can be educationally relevant without being necessary for the student's specific programme. ADE reviewers look for a direct connection to the student's educational plan.

Grey Areas That Catch Parents Off Guard

Certain categories generate far more than their share of disputed purchases. Here is where the ordinary-and-necessary standard creates the most confusion:

Technology accessories. Technology devices require approval by ADE or an Arkansas-licensed physician and are reviewed for appropriateness and need. If the annual aggregate cost exceeds $1,000, the student must show a specific private-school or higher-education requirement, or that a qualified professional deems the technology necessary. Televisions, gaming consoles, home-theater equipment, and audio equipment are excluded. Ask ADE about items such as printer ink, a second monitor, or premium headphones before relying on EFA funds.

Educational subscriptions. A digital curriculum subscription is an eligible expense. But what about an educational streaming service, an online library membership, or a museum app with interactive content? The standard favours subscriptions that are the curriculum over subscriptions that supplement it.

Supplies vs. household items. Art supplies for a documented art curriculum unit are ordinary and necessary. The same art supplies purchased without a curriculum connection are harder to justify. The item itself is not the issue — the connection to documented coursework is.

Used curriculum and second-hand purchases. Buying used textbooks or curriculum from another homeschool family can qualify, but the reimbursement documentation must show the specific item, purchase amount, seller, and date. A Venmo payment to a friend with no description will not pass review.

How to Protect Your Purchases

The practical defence against a rejection under the ordinary-and-necessary standard is documentation — prepared before you submit, not after a rejection.

Document your curriculum plan. If you have a written scope and sequence for each subject, a questioned purchase can be traced back to a specific course requirement. "Microscope for Unit 4: Cell Biology, per Apologia Biology curriculum" is defensible. "Microscope for science" is weaker.

Match every purchase to a subject or course. When submitting a reimbursement, the academic justification field is your opportunity to make the connection explicit. Do not leave it blank and assume the reviewer will figure it out.

Keep the receipt clean. An itemized receipt that shows exactly what was purchased, from what vendor, on what date, for what amount — with no non-educational items on the same transaction — eliminates the documentation objections that cause most rejections. The reviewer only gets to the ordinary-and-necessary question if the paperwork is clean first.

When in doubt, use the marketplace. Marketplace purchases go directly through participating vendors, but each expense must still meet EFA rules and remains subject to ADE review.

What to Do If a Purchase Is Rejected

For a denied purchase, 6 CAR § 35-113 allows an individual expense reevaluation with additional documentation or clarifying information. If that request is denied, you may seek a final review. Follow ADE's written instructions for the submission method and timing.

A successful appeal does three things:

1. Identifies the specific ADE rule or Family Handbook provision that authorizes the purchase
2. Connects the item directly to the student's documented educational programme
3. Explains how the purchase meets the ordinary criteria in 6 CAR § 35-114 and the necessary criteria in § 35-115

An explanation that addresses the denial reason gives ADE the information needed to review the request; a generic statement such as "this is for school" does not.

The Arkansas EFA Parent Guide includes the full expense classification framework mapped against the ordinary-and-necessary standard — with specific examples of approved, grey-area, and prohibited items in each spending category, so you know where each purchase stands before you make it.

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