Funding and ESAs
Flexibility
Understanding State-Funded Education in a Changing Landscape
August 19, 2025
As parents and guardians increasingly seek alternatives to traditional schooling, understanding how education is funded has never been more important. Whether it's affording a single advanced course or full-time virtual school, state-funded education options offer a powerful pathway to customized, high-quality learning, especially for those with limited financial resources.
For more than two decades, Apex Learning has partnered with schools, districts, and states to deliver rigorous, standards-aligned digital curriculum that meets the needs of K-12 students across the country.
Through partnerships that leverage federal programs, state funding, and local education agency (LEA) resources, Apex Learning helps ensure that eligible students have access to high-quality instruction regardless of geographic or financial barriers. In states offering Education Savings Accounts (ESAs) and other school choice mechanisms, Apex Learning is often a top choice for parents and guardians seeking flexible, full-time virtual school or supplemental coursework.
In this comprehensive guide, we’ll explore how state funding supports K-12 education options, online learning, and expanded access to academic achievement for all students. From Arizona’s Empowerment Scholarship Accounts, to New Hampshire’s Education Freedom Account, to New York City’s Children’s Scholarship Fund, to the Utah Fits All Scholarship Program, states are offering innovative ways to support parents and guardians. Programs like the Arkansas Education Freedom Account and South Carolina’s Education Scholarship Trust Fund are also helping bridge opportunity gaps and reimagine what school can look like — especially for those who benefit from flexible, personalized learning pathways.
State-funded education refers to public education programs and financial support mechanisms that are financed through state budgets, often in combination with local and federal funding sources. This includes funding for public schools, charter schools, online schools, and scholarships or savings accounts that can be used for a customized education experience.
Traditionally, public school funding has relied on a combination of state income taxes, local property taxes, and federal contributions. However, recent years have seen a shift toward more flexible and inclusive models, including programs that give students direct access to education funds to be used on services that best meet their unique needs.
State-funded education is expanding rapidly across the United States, as more states embrace flexible school choice models. In 2020, only five states had active Education Savings Account (ESA) programs. As of 2025, that number has grown to over 30, reflecting strong nationwide interest in alternative education options. More than one million students now participate in private school choice programs, including ESAs, tax-credit scholarships, and similar initiatives. Nearly half of all K-12 students in the U.S. live in states that offer some form of universal school choice eligibility, making state-funded education a fast-growing, high-impact force in modern learning.
For many parents and guardians, affordability has been a barrier to exploring virtual school or supplementing traditional education with online courses. State-funded education programs help close that gap. By redirecting funds to follow the student, these programs make it possible to access high-quality education regardless of ZIP code or household income.
Online schools like Apex Learning offer transparent, flexible pricing and payment options, which make them an ideal match for state funding models. Whether a student needs to take just one course or a full-time schedule, state dollars can often be applied to cover tuition, ensuring students get the support they need without financial strain.
State support for school choice and online learning varies significantly from one state to another, both in scope and in funding approach. According to recent research from the Education Commission of the States and various state education departments, several standout programs are leading the way in expanding access to flexible, high-quality learning options:
These programs are driven by goals such as improving academic achievement, supporting students with special needs, and addressing long-standing disparities in public school funding. By targeting underserved communities, expanding access to specialized instruction, and empowering students with greater choice, these initiatives play a critical role in reshaping public education to be more flexible and outcomes-driven.
State-funded programs are not one-size-fits-all. They are designed to meet diverse learning needs and open doors for a broad range of students. State-funded education supports a wide spectrum of learners, including:
State-funded education programs are specifically designed to help close equity gaps by targeting students and communities where traditional funding models fall short. In areas with limited public resources, overcrowded schools, or reduced course offerings, state-funded programs provide access to essential services and high-quality instruction that might otherwise be out of reach.
As more states expand support for virtual learning, parents and guardians are finding that high-quality online education is aligned with their state-funded benefits. Virtual schools like Apex Learning have become increasingly accessible through state funding. Apex offers:
For example, a student in a rural Arizona school district may need access to advanced STEM or foreign language courses not offered locally. Through the state’s Empowerment Scholarship Account program and a partnership with Apex Learning, that student can enroll in an online course that satisfies graduation requirements while also preparing them for postsecondary opportunities. This flexibility ensures that geographic location or limited school resources don’t hinder academic potential.
The Critical Role of State Governments and Agencies
While federal programs such as the Every Student Succeeds Act and the Individuals with Disabilities Education Act (IDEA) shape overall policy, it is state governments, departments of education, and local education agencies that determine how funding is allocated and what programs are available.
State-level policy choices around discretionary grants, formula grants, and technical assistance directly impact how much funding is available for online education. Some states also engage in public-private partnerships to increase access, particularly in areas where public education infrastructure may be limited.
As more students explore online learning through state-funded programs, a few key questions come up time and again. Here are the answers to help you get started with confidence.
Q: Is online school really free through state programs?
A: Not always. While some programs cover 100% of tuition, others offer partial funding, especially for supplemental coursework. Always check your state’s guidelines.
Q: How do I know if my student is eligible?
A: Eligibility often depends on factors like income level, school district, special education status, and whether your student is already enrolled in a public school. Check with your state education agency.
Q: Can I use state funds for part-time enrollment?
A: Yes, many programs support both full-time virtual school and individual course enrollment.
Q: Do these programs affect federal student aid later on?
A: No. Participation in K-12 state-funded education programs typically has no impact on eligibility for federal student aid.
Here are a few steps parents and guardians can take to explore state-funded education options:
State-funded education is transforming the way we all think about school. With new programs aimed at expanding access, improving student success, and closing long-standing funding gaps, high-quality online learning is now within reach for more students than ever before.
Whether you live in Arizona, Texas, Missouri, or another part of the U.S., your state may offer additional resources that allow you to pursue a flexible, customized, and cost-effective education pathway. At Apex Learning, we’re committed to working with parents and guardians, educators, and government agencies to ensure that every eligible student can access the education they deserve.
Ready to take the next step? Enroll with Apex Learning today to unlock affordable, high-quality online courses tailored to your student’s needs.
