Tennessee: Individualized Education Account Program

The state funds the program through the school funding formula. An Individualized Education Account (IEA) is funded by state funds at an amount equivalent to 100% of the state and local funds reflected in the state funding formula that would have gone to the student had he or she attended a zoned public school, plus special education funds to which the student would otherwise be entitled under the student’s Individualized Education Plan (IEP).

Families receive IEA funds quarterly in an IEA debit card account during the 10 months of the school year. Funds can roll over each quarter, but at least half of the annual award amount must be spent by the end of the school year.

• Income Limit: None
• Prior Year Public School Requirement: Yes, with exceptions
• Testing Mandates: State test or nationally norm–referenced tests (grades 3–8)
• Special Needs Pathway: Pathway for students diagnosed with autism, deaf-blindness, a hearing impairment or deafness, an intellectual disability, an orthopedic impairment, a traumatic brain injury, or a visual impairment or blindness

Students qualify if they are eligible to enroll in kindergarten through 12th grade and have an Individualized Education Plan (IEP) with a primary or secondary diagnosis of one of the following:

• Autism
• Deaf-blindness
• Hearing Impairment (including deafness
• Intellectual disability
• Orthopedic impairment
• Traumatic brain injury
• Developmental delay
• Visual impairment (including blindness)
• Multiple disabilities

The standard submission of the application is via the online application. Parents should be prepared to provide the following information and documentation:

• Proof of income eligibility by demonstrating the the family receives TANF, or by providing a photocopy of the parent’s federal income tax return
• Proof of Address
• The student’s name, date of birth, and grade
• The name, phone number, date of birth, and social security number of the parent
• Information regarding where the student attended school during the previous school years

Scholarships are available to students to enroll in participating schools or homeschooling. Account funds are approved for wide use including:

• Tuition or fees at a participating school and textbooks required by a participating school
• Tutoring services provided by an accredited tutor
• Payment for purchase of curriculum and any required supplementary materials
• Fees for transportation
• Tuition or fess for a nonpublic online learning program or course
• Fees for nationally norm-reference testing or exams related to postsecondary admissions
• Contributions to a Coverdell Education Savings Account for the benefit of the participating student
• Educational therapies by a licensed or accredited provider
• Approved computer hardware or technology for educational need
• Services provided under a contract with a public school, including individual classes and extracurricular activities
• Tuition or fees at an eligible postsecondary institution
• Textbooks at a postsecondary institution
• Fees for the management of the IEA

Funds can roll over each quarter, but at least half of the annual award amount must be spent by the end of the school year.

Additional Program Guidelines

• Enrollment Cap: None
• Account Cap: 100% of state and local funds reflected in the state funding formula and categorical grants for students with special needs
• Budget Cap: None

Participant and Family Guidelines

• Click Here for the Program Administrator’s Parent Handbook
• Education Requirements:

• Educate the student in at least the subjects of language arts, mathematics, social studies, and science
• Ensure that students in grades 3–8 are annually administered either a nationally norm-referenced test identified by the Tennessee Department of Education or the Tennessee state tests (TCAP) or any future replacements of the TCAP tests

• Parent Supplemented Funds/Scholarships: Allowed
• Disbursement/Payment Frequency: Quarterly
• Reimbursement: Not permitted
• Miscellaneous:

• Not enroll student in a public school
• Use program funds only for authorized purposes

Education Provider Guidelines

• Accreditation/Approval: State
• Employment Standards: Conduct background checks on all employees
• Nondiscrimination: Do not discriminate based on race, color, or national origin
• Calendar/Curriculum/Attendance: Submit calendar to state
• Financial: Audit upon request
• Miscellaneous:

• Do not refund, rebate, or share funds with participating students
• Comply with all health and safety laws that apply to private schools

(Last updated December 18, 2024)

Tenn. Code Ann. §§ 49-10-1401 through 1406

(Last updated July 15, 2024)