CHOOSE Act Unspent Funds: What Happens to Money Left in ClassWallet on June 30

The June 30 Deadline

Under ALDOR Rule 810-28-1-.07(1)(b), unspent balances remaining on June 30 are reclaimed by ALDOR and credited back to the state CHOOSE Act Fund. Funds do not roll over to the next academic year.

Year-one data showed an average expenditure of $5,400 per participating student (across both home education and private school tracks), with 18,483 accounts actively funded against $99.8 million in total program spending. Most families used their funds. But for homeschool families working with $2,000 or a share of $4,000, leaving even a few hundred dollars unspent means real money lost.

What Triggers an Early Freeze

You don't always get until June 30. A mid-year move out of Alabama or full-time enrollment in a non-participating school freezes the account immediately. Other changes can also end eligibility:

• Your child enrolls full-time in a non-participating school — remaining funds revert to the state CHOOSE Act Fund
• Your family moves out of Alabama — notify ALDOR of the address change within 30 days; remaining funds revert to the state CHOOSE Act Fund
• Your child graduates or ages out — students who earn a high school diploma or reach the applicable age ceiling (19, or 21 for students with disabilities) lose eligibility
• You're found in violation of program rules — fraudulent invoices or prohibited purchases can trigger account termination plus restitution requirements

For the out-of-state move and non-participating-school cases, the program research says the wallet is frozen immediately and unexpended funds revert to the state.

How to Avoid Losing Funds

Plan backward from June 30. Map out your remaining purchases in January or February so you have time to find approved vendors, submit invoices, and handle any rejections.

Don't wait for resubmissions. If ClassWallet rejects an invoice, you need a corrected invoice from the provider before resubmitting. That back-and-forth can eat weeks. Submit invoices early in the year when you have time to fix problems.

Use the Marketplace for remaining balances. If you have $150 left in May and no pending vendor invoices, browse the ClassWallet Marketplace for approved books, curriculum supplements, or school supplies. A $30 balance that could have bought a useful reference book shouldn't expire because you forgot about it.

Track your spend monthly. ClassWallet shows your remaining balance in real time. Check it on the first of each month from January through June. A surprise $400 balance in June is a planning failure, not a ClassWallet problem.

Funds That Come Back to You

If a Marketplace order is returned or a vendor issues a refund, that money goes back into your ClassWallet balance — not to your bank account. You can then spend it on other approved purchases before the June 30 deadline. Watch your balance after any returns to make sure the credit posted.

The Alabama CHOOSE Act ESA Parent Guide includes a monthly spend-down calendar and a zero-balance planning worksheet designed to ensure every dollar of your ESA award goes toward your child's education before the clawback deadline.

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