Families in Arkansas utilizing Educational Freedom Accounts (EFAs) may receive between $100 and $150 less for educational expenses next school year, according to state officials. Darrell Smith, assistant commissioner at the Arkansas Department of Education, informed homeschooling families during a recent webinar that the average EFA award for the 2027-28 school year is expected to be about $7,233. This marks a slight decline from the current year's average of $7,346 and would be the first year-over-year decrease since the program’s establishment in 2023.
The reduction stems from changes to the foundation funding formula made by state lawmakers in 2025. For the 2026-27 school year, the General Assembly removed $333 initially allocated for public school employee health benefits from the foundation funding calculation. As a result, foundation funding was lowered from $8,162 to $8,037 per student. State officials emphasized that the adjustment does not reduce overall funding for public schools or alter the benefits available to public school employees.
The Arkansas Department of Education anticipates formally announcing the finalized 2027-28 EFA amounts in approximately five weeks. In the meantime, some families have expressed concerns about how the reduction could affect their ability to purchase curriculum, technology, and other resources needed for private schooling or homeschooling.
Educational Freedom Accounts, introduced as part of an educational reform package, provide financial assistance to families choosing private schools or homeschooling pathways for their children. The program has grown significantly since its launch, becoming a popular option for parents seeking alternative approaches to education.
Moving forward, families and education advocates may continue to monitor any further developments in foundation funding and its potential impact on EFA allocations.