House Bill 1078: ESA

February 19, 2025February 19, 2025 Bill Tracker

Latest Action

---

On February 17, HB 1078 was referred to the Senate Education Committee. It is awaiting a committee vote. 

Explanation of the Bill

In 2015, the Equal Opportunity for Students with Special Needs Act, also known as the Education Scholarship Account (ESA) program, was created for families with children with disabilities. The scholarship fund allows families to fund private school tuition or other related educational expenses with an ESA. Any student who had an active Individualized Education Program (IEP) within the past three (3) years and has maintained eligibility is eligible to apply. 

HB 1078 expands access to ESAs by removing the program’s waitlist requirement. Currently, once 250 students (50% of the annual enrollment limits) are awarded ESAs, the Mississippi Department of Education (MDE) sets an application deadline for the remaining 250 spots and begins to maintain a waitlist. Students are awarded ESAs in the order of the waitlist, subject to the availability of funds, after they demonstrate they have been accepted to a qualifying school providing services for the student’s disability. In HB 1078, the 500-student limit is abolished and all eligible students may now apply for an ESA on a rolling basis, with no application deadlines or waitlist. However, the funding for ESAs remain subject to appropriation, meaning it is unclear how many students will actually be served in a given year. Anticipating a significant increase in the use of ESAs, HB 1078 authorizes the MDE to contract with a third-party vendor to administer the funds.

HB 1078 further deletes the requirement for parents to certify that their child will attend a school that is qualified to provide services for the student’s disability or meet the student’s IEP. Instead, schools will be the sole party required to provide this certification. However, the bill also deletes language to exclude a school from participating in the program in a subsequent school year if the school does not comply with regulations, including making this certification.

Additionally, HB 1078 changes the frequency of ESA payments from quarterly to monthly, and funds the scholarship, subject to appropriation, at the base amount for the Mississippi Student Funding Formula. Under current law, the ESA amount was set in 2015-2016 with annual percentage increases based on the percentage increase to MAEP, making the 2024-2025 amount $7,829.00, which is over $1,100 over the base amount for MSFF this year.

Mississippi Foster Child Education Scholarship Account Program

HB 1078 creates the Mississippi Foster Child Education Scholarship Account Program (FESAs). Eligible students meet the following criteria:

• Are in the custody of the Department of Child Protection Services, 
• Have been in temporary placement exceeding six months, and 
• Are not enrolled in a public school or receiving funding through another educational assistance program.*

FESAs are subject to appropriation, are funded at the base amount for the Mississippi Student Funding Formula, and would be granted quarterly to educational institutions. 

The Department of Child Protection Services (DCPS) would manage and oversee the ESA funds for foster children. However, MDE and MDCPS would jointly develop policies to administer the program. The Joint Legislative Committee (PEER) would also evaluate the program every two years beginning in 2027. 

*It is unclear if foster children can receive funding from other education assistance programs. In lines 328 to 330 eligibility for the ESA is contingent upon not receiving funding from other education assistance programs, but in lines 461 to 467, foster children are not disqualified from receiving funds from other ESAs or scholarships.

---