South Carolina restores school choice with bigger, better program

Up to 10,000 South Carolina students will be eligible for school choice this fall after Gov. Henry McMaster signed legislation restoring and expanding the state’s previous program.

The Palmetto State had a school choice program last year, but the state Supreme Court abruptly halted it in September, just weeks into the school year. Now, the Republican-led Legislature and McMaster, a Republican who had signed the previous school choice program into law, crafted a solution that is designed to withstand legal challenges.

At issue last year was the use of state funds for the education savings accounts (ESAs), which parents direct to pay for their child’s education expenses, including private school tuition. The court found those violated the state’s Blaine Amendment, which prohibits state money from going to religious schools, even though courts in other states have found ESAs do not violate it.

The new legislation contains several workarounds, such as letting the state choose between the general fund and state lottery to fund the program, as well as transferring the money first to a trustee who then funds the accounts, meaning the dollars are not coming directly from the state.

The new program offers larger scholarships – $7,500 versus $6,000 – and will be open to 85% of the state’s students in its second year, expansions from the former effort.

For the upcoming school year, families at or below 300% of the federal poverty line can qualify, or a family of four earning no more than $96,450. The following year, the limit rises to $160,750, which is 500% of the poverty level.

The legislation requires 10,000 scholarships be available for 2025-26, and at least 15,000 scholarships each year after that – a number the Legislature can increase based on demand. For this school year, 5,000 scholarships were available, with nearly 2,900 students approved to use them.

Advocates scrambled to raise private dollars following the court ruling against the previous program. About $2.5 million was raised, enough to cover 800 students.

“This is more than a policy victory – it’s a lifeline for families who want nothing more than the best for their children,” said Wendy Damron, president of the Palmetto Promise Institute, which raised money for the students and is now encouraging parents to register for the new program.

“I’ve witnessed the joy, relief, and renewed hope these scholarships bring, and I believe every child in South Carolina deserves that same opportunity,” she said in a release. “We will continue working tirelessly until every family has the freedom to choose the education that fits their child best.”