Indiana’s private school voucher enrollment tops 80,500 students, costs half a billion dollars

More than 80,500 students participated in Indiana’s private school voucher program last school year, which provides public tax funds for families to help pay for private, parochial and nonreligious schools.

A just released state report projects Indiana paid about $548 million for the Choice Scholarship Program in the 2025-26 school year. That’s an increase of around 10% from the previous year — or $50.8 million more. A final tally won’t be available until next year, the report said.

The increased costs came as participation in the program has slowed compared to the previous two years: 31.6% in 2023-24, 8.5% in 2024-25 and about 6% in 2025-26.

The 2025-26 school year was the last time any income requirements remained for students to be eligible to get the voucher. A household’s income had to be within 400% of the amount to qualify for federal free or reduced lunch, so a family of four could have an annual income of around $237,910.

Last school year was also the first time the number of families with annual incomes above $100,000 using vouchers surpassed the number of families earning below $100,000.

In previous years, the largest group of families using vouchers fell in the $50,000-$100,000 income band, but in the 2025-26 school year, the number of families making $100,000-$150,000 who were now using the vouchers was nearly the same as the lower-income band.

Indiana first approved vouchers in 2011, originally to help low-income students leave struggling public schools for private schools. A series of legislative changes in the following years broadened eligibility requirements to include middle class families and students who never attended public schools.

In 2025, state lawmakers removed all income requirements for the program starting in July 2026, creating a universal voucher program.

Details from the report 

For a private or parochial school to participate in the Choice Scholarship Program, they must require a student to pay tuition to attend, administer the statewide assessments and be accredited by the State Board of Education or a national or regional accrediting agency recognized by the State Board of Education.

During the 2025-26 school year, 395 schools participated in the Choice Scholarship program, which is a 5.9% increase from the previous year, according to the Choice Scholarship Program Annual Report.

White students account for around 64% of all participants using a voucher. Black students consist of about 8.6%, Asian students 4% and Hispanic students about 17.5%. None of the racial demographics changed considerably from the 2024-25 participation data.

Traditional public schools are still the most sought-after choice among Hoosier families and students, with 85% of statewide enrollment choosing traditional public schools during the 2025-26 school year. Public charter schools enroll 5% of students statewide.

Around 9% of students statewide chose to attend a non-public school, either with a voucher or without, during the 2025-26 school year.

Most students using the voucher have never attended public school. However, the 2025-26 school year saw an increase in students from the previous school year who had previously attended public schools but now are using the voucher.

Vouchers provide 90% of the amount of state-funding a public school corporation receives for each student, or cover all tuition and fees — whichever is the lesser amount.

The average tuition for the students whose voucher covers all tuition and fees was around $6,583, according to the latest report.

Out of the 80,548 students participating last school year, about 76% of the students received 90% of their per pupil funding for the voucher.

This year’s report didn’t include its usual assessment of what an “average” student looks like in the voucher program.

Heritage Christian School in Indianapolis is projected to receive the most state funds from the program — $6,507,750 for 973 students receiving a voucher.

Contact WFYI Government Reporter Caroline Beck at cbeck@wfyi.org.