Universal School Choice Attracts More Educational Alternatives

If you build it, they will come.

“It” is an educational framework that empowers students and families to choose the best school for their needs. “They” are the private schools that provide these students and families with alternatives to their local district schools.

That’s the primary thesis of a new report by EdChoice, a nonprofit organization specializing in school-choice policy reforms. The report—titled “The Supply Side of ESAs”—demonstrates how universal school-choice programs, such as educational savings accounts (ESAs), incentivize private school and home-education vendors to enter markets once monopolized by public schools.

The report prominently features Arizona, one of the first states to adopt school choice, as a case study. In 2011, the Grand Canyon State had about 351 private schools; by 2021, that number had spiked to 502—a 43 percent increase.

In 2022, Arizona became the first state to enact universal school choice, meaning all students in the state qualify. Since then, the number of private schools has continued to grow. In the 2023–24 school year, Arizona’s ESA program served more than 33,000 students at 661 nonpublic schools.

A similar pattern emerges in three other states: Florida, Ohio, and Wisconsin. Like Arizona, these three states, which also offer ESAs with universal eligibility, experienced a similar uptick in new nonpublic schools. Private schools and other alternative educational vendors have thrived in states offering universal school choice.

Meanwhile, nonpublic schools in states lacking universal school choice have dwindled. States like New York, which offer limited school choice programs, have had as many as 400 private schools close since 2011.

Unfortunately, Pennsylvania is among these states. The Keystone State’s educational choice programs—namely, the Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs—undoubtedly have served tens of thousands of students over the last two decades.

However, as the EdChoice report demonstrates, there is room for improvement in Pennsylvania. Arbitrary program caps set by the state legislature throttle scholarship availability. Comparatively, the number of Pennsylvania nonpublic schools has shrunk, resulting in fewer options for students and families seeking alternatives to their district schools.

Universal school choice expands the educational ecosystem. States that adopt universal choice and minimize regulatory friction will experience a substantial increase in nonpublic alternatives. With the ever-increasing demand for educational options, universal ESAs incentivize the supply side of the equation.

School choice continues to grow nationally. In the last several years, 18 states have adopted new programs that help students and families find and afford their school of choice. In sum, 35 states, the District of Columbia, and Puerto Rico offer 76 school choice programs.

And as long as states continue to build the necessary infrastructure for educational choice, educational alternatives will emerge.