Idaho’s new parental choice tax credit program began accepting applications on May 21, giving eligible families up to $5,000 per student to offset the cost of private school tuition or homeschooling — but the program is drawing scrutiny over what it could mean for public schools already among the most underfunded in the nation.
How the Program Works
House Bill 93, passed during the 2025 Idaho legislative session, established the Parental Choice Tax Credit as a refundable benefit for qualifying families. To be eligible, parents must earn less than 300 percent of the federal poverty level. The program is capped at $50 million statewide and applications are handled on a first-come, first-served basis.
Supporters of the measure argue parental authority over education is a fundamental principle. Rep. Tim Schwarzenberger, a backer of the legislation, said “parents are in the best position to determine the right educational setting for their children.” The Idaho Department of Education describes the benefit as “a refundable tax credit of up to $5,000 per eligible student.”
For many Idaho families — particularly those in rural communities like those across Latah County — private or homeschool alternatives can provide a better academic or values-based fit. School choice advocates have long argued that competition improves outcomes for all students, public and private alike.
Idaho Already Ranks Last in Per-Pupil Spending
The backdrop for the new program is a state that already spends less per student than any other in the country. In 2024, Idaho averaged $11,167 per pupil — a figure that stands in stark contrast to states like New Jersey and New Hampshire, both of which spend more than $20,000 per student. Despite that spending gap, Idaho students post average to above-average standardized test scores in reading and math, a point frequently cited by school choice proponents as evidence that more spending does not automatically produce better results.
Still, critics of the tax credit program point to a structural concern: when students leave public schools for private or homeschool settings, districts may lose enrollment-based funding while fixed operational costs remain largely the same. Research from North Carolina found that charter schools in at least one district created a fiscal drag of $500 or more per remaining public school student — a figure that could translate into meaningful budget pressure if Idaho sees similar enrollment shifts.
Special Education Gap Compounds the Picture
Perhaps the sharpest funding concern involves special education. Idaho currently assumes that 5 to 6 percent of its K-12 student population requires special education services. The actual figure, however, is nearly double that: 11.5 percent of Idaho students qualify for special education. That disconnect produces an estimated funding shortfall of $82.2 million — and Idaho already provides less special education funding than any of its neighboring states.
If students who do not require specialized services are more likely to participate in the tax credit program — leaving a higher concentration of special-needs students in public schools — districts could face growing per-pupil costs with shrinking enrollment-based revenue to cover them.
Facilities Bill Adds Context
Idaho lawmakers did take a significant step toward school infrastructure this session, approving a $2 billion school facilities funding bill distributed based on enrollment figures. However, the practical effect varies widely by district size. Roughly 40 percent of Idaho’s school districts are expected to receive $2 million or less from the measure — an amount that may do little to address aging buildings or deferred maintenance in smaller, rural systems like those found in Latah County.
For Latah County families, the parental choice tax credit may represent a genuine new option for tailoring a child’s education. For local school administrators, the coming years will likely bring close attention to enrollment trends and how any shifts ripple through district budgets already stretched thin.
What Comes Next
With the application window now open, the state will process requests on a rolling basis until the $50 million cap is reached. Policymakers and school officials across Idaho will be watching closely to see how many students participate and how that affects public school enrollment figures heading into the next budget cycle. Broader questions about special education funding and per-pupil spending disparities are expected to resurface when the Idaho Legislature convenes again. For ongoing statewide education coverage, visit Idaho News.