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Can You Use ESA Funds for Tutoring? What Parents Need to Know in 2026

September 5, 2026 · The TutorBuddi Team

In most of the 18 states with Education Savings Account (ESA) programs, tutoring is an approved expense, so families can often put ESA funds (roughly $4,000 to $10,500 per year depending on the state) toward AI tutoring like TutorBuddi, as long as their state's approved-expense list covers it.

If you have never heard of an Education Savings Account, you are not alone. But if you have a child in K-12, this could change how you pay for their education this year.

What is an ESA?

An Education Savings Account is a state-funded program that gives families public education dollars to spend on approved educational expenses. Instead of that money going directly to a public school, it goes into an account that you control.

As of the 2026-27 school year, 18 states have active ESA or ESA-like programs. Families receive between $4,000 and $10,500 per year per eligible student, depending on the state.

That money can be used for things like private school tuition, curriculum, online courses, educational therapies, and in most states, tutoring.

Which states have ESA programs?

Here are some of the largest active programs:

  • Arizona Empowerment Scholarship Account: approximately $7,000 per student. Open to all K-12 students. Administered through ClassWallet. Tutoring is an eligible expense.
  • Florida Family Empowerment Scholarship: varies by program. Multiple scholarship options through Step Up For Students and AAA Scholarship Foundation. Educational software and tutoring are eligible expenses.
  • Iowa Students First ESA: $8,148 per student for 2026-27. Open to all K-12 students regardless of income. Administered through Odyssey.
  • Texas Education Savings Account: launched for 2026-27. Available to eligible students through the Texas Education Agency.
  • North Carolina Opportunity Scholarship: up to $7,468 per student. Income-based eligibility.
  • South Carolina Education Scholarship Trust Fund: $7,634 for 2026-27. Administered through ClassWallet. Tutoring is an eligible expense.
  • Indiana Choice Scholarship and ESA: multiple programs including a Career Scholarship Account providing $5,000 per year for grades 10-12.

Other states with active programs include Alabama, Georgia, Idaho, Indiana, Louisiana, Mississippi, Montana, New Hampshire, Oklahoma, Tennessee, Utah, and West Virginia. Each state has different eligibility requirements, funding amounts, and approved expense lists.

Can you use ESA funds for AI tutoring?

In most states with ESA programs, tutoring is listed as an approved educational expense. AI tutoring platforms like TutorBuddi fall under this category because they provide direct educational instruction to students.

If your state uses ClassWallet or Odyssey to administer funds, you can search for approved vendors directly in their marketplace. If your state uses a reimbursement model, you pay for the service and submit receipts through your state’s ESA portal.

How TutorBuddi works with ESA funds

TutorBuddi is an AI tutoring app for grades 3 through 12. It teaches students how to think through problems using Socratic questioning rather than giving them answers. The app adapts to each child’s learning style and gives parents full visibility into progress through Buddi Insights.

TutorBuddi Premium costs $11.99 per month or $114.99 per year. For families with ESA funding, that is a fraction of the annual allocation and leaves the majority of funds available for other educational expenses.

If you have ESA funds and want to use them for TutorBuddi, here is what to do:

  1. Check your state’s approved expense list to confirm tutoring is covered.
  2. Search for TutorBuddi in your state’s ESA marketplace if you use ClassWallet or Odyssey.
  3. If your state uses reimbursement, subscribe to TutorBuddi Premium at tutorbuddi.ai and submit your receipt through your state portal under the tutoring or online educational program category.
  4. Save all receipts and invoices.

If you are not sure whether your state’s program covers AI tutoring, reach out to us at support@tutorbuddi.ai and we will help you figure it out.

What if you don’t have ESA funds?

TutorBuddi was built to be affordable for every family, with or without state funding. The free tier includes 5 tutoring sessions and 10 flashcard or quiz sets every month, no credit card required.

Quality tutoring should not depend on what your family can afford or which state you live in.

Start free at tutorbuddi.ai or download today on the iOS App Store.

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