TL;DR: Tennessee's Education Savings Account pays $10,132.54 a year in the Memphis-Shelby zone, but it is closed to students zoned to Knox, Blount, Anderson or Sevier County schools. Knoxville families use the $7,530 Education Freedom Scholarship, or the IEA for a child with a qualifying IEP. Here is how the three programs line up from an East Tennessee address.
Is Knox County part of Tennessee's ESA program?
No. When TDOE describes who the ESA is for, it names three school systems, Memphis-Shelby County, Metro Nashville and Hamilton County, plus the schools that made up the Achievement School District on May 24, 2019. Knox County Schools is not one of them, and neither are Blount County, Maryville, Alcoa, Anderson County, Clinton, Oak Ridge or Sevier County schools.
The rule follows where a child is zoned, not where the private school sits. A Farragut family cannot qualify by choosing a private school in Chattanooga or Nashville, because the family's own zoned district is what counts.
What do the three Tennessee programs look like side by side?
From a Knoxville address, two of the three programs are on the table. A student can hold only one of them in a school year.
| Education Freedom Scholarship | Individualized Education Account | Education Savings Account | |
|---|---|---|---|
| Open to Knox, Blount, Anderson, Sevier students | Yes | Yes, with a qualifying IEP | No |
| 2026-27 amount | $7,530 | TISA base plus average special-education funding | $10,132.54 full year (Memphis-Shelby zone) |
| Income rule | Income sets priority order only | None | Prior-year income up to twice the free-lunch guideline |
| Schools | Registered Category I-III | Category I-V, umbrellas, home schooling | Approved Category I-III |
| 2027-28 application | Dates not yet posted | Projected to open Feb 16, 2027 | Feb 2 - Apr 15, 2027 |
How does the Education Freedom Scholarship work for a Knoxville family instead?
The Education Freedom Scholarship is open to any Tennessee resident entitled to attend a public K-12 school who is a U.S. citizen or lawfully present. It pays $7,530 for 2026-27, first toward tuition and fees at a registered school, and then toward approved extras such as tutoring, books and Marketplace technology.
Demand is the catch. For 2026-27, TDOE received 56,440 applications for 35,000 seats and left 17,735 on a waitlist, so seats were handed out by priority tier and, within each tier, by the time a complete application arrived. A Knoxville family of four at or under $57,720 lands in Priority 2 on TDOE's current chart; at or under $173,160, Priority 3.
When is the IEA a better fit than EFS in East Tennessee?
The Individualized Education Account is usually the better fit for a student whose Tennessee IEP lists one of the 11 eligible disability categories. It adds average special-education funding to the base, it has no income test, and it can pay schools EFS cannot: Category IV and V schools, church-related umbrella programs and independent home schooling.
That last point is bigger here than in Nashville or Memphis. TDOE's 2026-27 directory lists 22 homeschool umbrella programs in Knox, Blount and Sevier counties, all of them church-related Category IV schools that EFS cannot pay. The trade-off is paperwork: IEA families need pre-approval for tutoring, therapy and devices, and must spend at least half of each year's award on approved expenses.
What is the ESA not, for a Knoxville family?
It is not a bigger version of EFS waiting to arrive, and it is not something Knoxville families can apply for and hope to win in a lottery. The ESA's districts are written into state law at Tennessee Code Annotated 49-6-2601 and following, so only the General Assembly can widen it.
- It is: a separate program for three districts and former ASD schools, with its own portal and income limit.
- It is not: open to a Knox County student, whatever the family's income.
- It is not: combinable with EFS or the IEA in the same year, even where it applies.
Lawmakers have put their expansion efforts into EFS instead. Governor Bill Lee signed a law on May 7, 2026 adding 15,000 seats, and on October 20, 2026 the Tennessee Lookout reported that a three-judge panel dismissed a lawsuit challenging the program.
What should a Knoxville family do before the 2027-28 cycle?
Decide which program fits your child, then prepare for its window. For EFS, create the portal account, scan a citizenship document and two current residency proofs, and gather the tax return TDOE asks for if you will claim an income priority. For the IEA, confirm that your child's IEP is active and lists an eligible category before the projected February 16, 2027 opening.
Our ESA explainer for Knox County and the EFS priority tier calculator cover the details.
Frequently asked questions
Is Knox County part of Tennessee's ESA program?
No. The ESA serves students zoned to Memphis-Shelby County Schools, Metro Nashville Public Schools, Hamilton County Schools or former Achievement School District schools only.
How does the Education Freedom Scholarship work for a Knoxville family instead?
Any eligible Tennessee K-12 student can apply; it pays $7,530 for 2026-27 at a registered Category I-III school, with seats awarded by priority tier when demand exceeds supply.
When is the IEA a better fit than EFS in East Tennessee?
When a student has a qualifying IEP: the IEA usually pays more, has no income test, and can fund Category IV schools, umbrella programs and home schooling.
What is the ESA not, for a Knoxville family?
It is not open to Knox, Blount, Anderson or Sevier County students at any income, and only the legislature could change that.
Related questions
- School vouchers in Knoxville: EFS and the IEA
- IEA or EFS for a Knoxville student with an IEP?
- Homeschool umbrellas and what state money can follow
Sources
- TDOE: Education Savings Account Program
- TDOE: School Choice Programs Comparison 2026-27
- TDOE: EFS expansion release, May 7, 2026
- Tennessee Lookout: Judicial panel dismisses private-school voucher lawsuit (Oct 20, 2026)
- TDOE: Individualized Education Account Program
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