House Bill 1433: Flexible and Rightful Education Enrollment (FREE) Act and Mississippi Foster Child Education Scholarship Account (FESA) Program Act 

February 14, 2025February 19, 2025 Bill Tracker

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The House failed to vote on HB 1433 by the 2/13 deadline, causing this bill to die on the calendar. 

Explanation of the Bill

The committee substitute for House Bill 1433 would establish the Flexible and Rightful Education Enrollment (FREE) Act and the Mississippi Foster Child Education Scholarship Account (FESA) Program Act. The purpose of these acts would be to increase access to private and public school choice for students enrolled in schools and districts with “D” or “F” ratings and for children in foster care. 

Flexible and Rightful Education Enrollment (FREE) Act

Under the FREE Act, qualifying students could apply to enroll in a public school other than the one they are zoned to attend as well as a participating nonpublic school. If a qualifying student enrolls in a public school district other than the one they are zoned to attend, the base per-pupil funding allocated for a student through the Mississippi Student Funding Formula (MSFF) would follow that student to their new school. If the student enrolls in a participating nonpublic school, their parents would receive this funding as a reimbursement for tuition and other educational expenses.

Student Eligibility

The bill states that in order to be eligible for the FREE program, a student must:

• Be or have been enrolled in a public school for at least a year;
• Reside in a school district that has received a “D” or “F” rating within the past five years or attend a school that has received a “D” or “F” rating and where the lowest 50% of students lack proficiency on the Third Grade Reading Assessment; 
• Reside in an area where there are no high-performing public schools (schools with an “A” or “B” rating)  that have the capacity to accept a transfer student within 30 miles of the student’s home; and 
• Reside in an area where there is an accredited nonpublic school within 30 miles of the student’s home.

Based on context in the rest of the bill, it seems that the final two provisions would only apply to students who wish to attend a nonpublic school under the program, though this is not explicitly stated in the bill.

School Eligibility 

Eligible students could apply to enroll in:

• Any school or district with the capacity to accept the student; or
• Any accredited nonpublic school in the state. In order to apply for this, the student must have applied to transfer to any high-performing public school within 30 miles of their home and have been denied due to lack of capacity. 

Protocol for Transfer

Students would submit applications for FREE scholarship funds to the receiving public school or district, or nonpublic school, during an annual enrollment period established by the Mississippi Department of Education (MDE). 

The receiving school could accept students if they had the capacity to do so. Districts would be required to create policies around determining their capacity to accept transfer students. They would be prohibited from using race, religion, or socioeconomic status to determine which students can transfer into the district. 

Siblings of Qualifying Students

If a student qualified to receive FREE scholarship funds, all siblings who live in the same household could also receive FREE scholarship account funds, regardless of the school the siblings currently attended. 

Reimbursements 

Parents of students who enroll in nonpublic schools under this program would submit documentation for reimbursement of tuition and other educational expenses to the MDE. Reimbursements would be made monthly. 

Transportation

The receiving school district or nonpublic school would not be required to provide transportation for transfer students. Parents of students in nonpublic schools could apply for additional reimbursement for transportation expenses. 

Eligibility for Other Programs

Students who are eligible for FREE scholarship account funds under this act, an Education Scholarship Account under the Equal Opportunity for Students with Special Needs Act, a Mississippi Dyslexia Therapy Scholarship for Students with Dyslexia Program, or a Mississippi Speech-Language Therapy Scholarship for Students with Speech-Language Impairments Program can only participate in one of the programs at once. 

Responsibility of MDE

The MDE would be required to develop rules for 

• Inter-district and nonpublic school transfer application timelines and procedures;
• Public reporting of open seats in public schools and districts; and
• An appeals process for denied transfers.

It would also annually report on the following information from public and accredited nonpublic schools:

• The number of students who applied to transfer schools under this program, specifying the number of students who were accepted and the number of students who were denied transfer;
• Reasons for denial of applications;
• Academic performance and demographic data of transferring students; and
• Financial impacts on transferor and transferee public school districts and nonpublic schools.

The MDE would be required to audit reimbursements for nonpublic school expenses to ensure compliance. They would also publish findings and recommendations for legislative or regulatory adjustments.

The MDE would be permitted to contract with a third-party vendor to administer the FREE program.

Responsibility of Nonpublic Schools

Accredited nonpublic schools participating in the program would be required to: 

• Meet all applicable accreditation and reporting requirements of the State Department of Education; and
• Comply with all applicable state and federal nondiscrimination laws.

Flexible and Rightful Education Enrollment (FREE) Scholarship Fund 

HB 1433 would establish the Flexible and Rightful Education Enrollment (FREE) Scholarship Fund in the State Treasury, which would be administered by the State Department of Education. This fund would provide reimbursements to the parents or legal guardians of eligible students who attend accredited nonpublic schools up to the amount of the state’s full base per-pupil funding for the child in attendance.

Funds would be reimbursed to the parents or legal guardians of eligible students who attend accredited nonpublic schools on a first-come, first-served basis. However, priority would be given to eligible students who reside in households that have an income at or under 138% of federal poverty level.

The fund would initially be appropriated five million dollars from the State General Fund for fiscal year 2026, or another source determined by the Legislature.  Afterwards, the Legislature would appropriate funds for the program based on the State Department of Education’s estimation of students attending accredited nonpublic schools who receive FREE scholarship account funds and the projected number of eligible students who will attend an accredited nonpublic school in the coming year.

Mississippi Foster Child Education Scholarship Account Program 

HB 1433 would establish the Mississippi Foster Child Education Scholarship Account (FESA) Program. This program would provide scholarships for foster students to attend nonpublic schools. 

School Eligibility

Eligible schools would include: 

• Accredited special purpose schools;
• Accredited nonpublic schools; or 
• Nonpublic schools that have enrolled a participating student and are providing services to the participating student.  

Home schools would not be eligible to receive funding under this program.

Student Eligibility
Eligible students would include children who: 

• Are in the custody of the Mississippi Department of Child Protection Services (MDCPS) as a foster child or ward of the state; 
• Have been in a temporary placement for more than six consecutive months; and
• Do not receive funding through another state or federal educational assistance program. 

An eligible student could participate in the FESA program if their foster parent, guardian or responsible agency official signs an agreement promising the child will receive an organized educational program with measurable goals, and will be educated in reading, grammar, math, social studies, and science. Additionally, the agreement requires the foster parent, guardian, or responsible agency official to

• Document their participating student’s disability at intervals; and
• Acknowledge that the eligible school has provided clear notice to the parent or guardian that the participating student has no individual entitlement to a free appropriate public education (FAPE) from their home school district for as long as the student is participating in the FESA program.

It also binds the foster parent guardian, or responsible agency official NOT to

• Enroll their participating student in a public school; or
• File for their student a certificate of enrollment in a home instruction (homeschooling) program.

Students who enroll in the FESA program would remain eligible to receive monthly FESA payments until they return to a public school, complete high school, or complete the school year during which they turn 21 (if they are eligible for special education for individuals with disabilities), whichever occurs first. Their eligibility would be revoked if they did not comply with program rules.

Eligibility for Other Programs

Though HB 1433 describes that in order to be eligible for the FESA program a student must not receive funding through another state or federal assistance program, it also states that a student’s eligibility to participate in the FESA Program would not disqualify the student from participating in either the Equal Opportunity for Students with Special Needs program, the Mississippi Dyslexia Therapy Scholarship for Students with Dyslexia Program, or the Mississippi Speech–Language Therapy Scholarship for Students with Speech–Language Impairments Program. 

These two provisions seem to contradict each other. The true intent should be clarified before the bill progresses through the legislative process.

Qualifying Expenses

Parents, legal guardians, or responsible agency officials could only use the funds deposited in a participating student’s FESA for qualifying expenses, including:

• Tuition and fees at an eligible school;
• Textbooks, digital books, or other instructional materials;
• Tutoring services provided by a certified teacher or licensed provider;
• Curriculum purchases;
• Fees for standardized testing, advanced placement examinations, or college entrance exams;
• Educational services or therapies from licensed or certified providers;
• Technology expenses;
• Dual enrollment or college credit fees and related textbooks or materials;
• Costs associated with extracurricular or educational enrichment activities, as approved by the MDCPS.

Students or their guardians could not receive cash or cash-equivalent items, such as gift cards or store credit, from any refunds or rebates from any provider of services or products. Any refunds or rebates should be credited to the student’s FESA. 

Funding Amount

Each student’s FESA would be funded annually at the base student amount of the Mississippi Student Funding Formula. For each subsequent year, the funded amount would increase or decrease by the same proportion as the student base amount is increased or decreased.

No funds for a FESA could be expended from the Mississippi Student Funding Formula, and no school district would be required to provide funds for FESA. 

Any funds remaining in a student’s Foster Child Education Scholarship Account when they completed school or stopped participating in the program would be deposited into the Kinkade Fostering Access and Inspiring True Hope (FAITH) Scholarship Program Fund.

Documentation

Eligible schools and educational service providers that serve participating students would be required to provide the foster parent, legal guardian, or agency official who submitted the FESA application with an original itemized receipt, including the service provider’s name and address, for all qualifying expenses. The recipient would be required to provide the original itemized receipt to the MDCPS within 30 days of incurring the expenses.

The MDCPS would verify the expenses and submit reimbursement requests to the State Department of Education, which would reimburse the MDCPS for qualified expenses within 21 business days of receipt of documentation. Within 10 business days of receiving reimbursement, the MDCPS would disburse funds to the foster parent, guardian, or agency official.

Educational service providers could directly invoice the MDCPS for services rendered, subject to approval.

Return to Home District

A participating student would be allowed to return to his home school district after enrolling in the FESA program. Upon the student’s return to his or her home school district, the student’s FESA would be placed on hold until verification is provided that the student has re-enrolled in an eligible school or completed high school. Once the student has graduated, funds remaining in the account would be deposited into the Kinkade Fostering Access and Inspiring True Hope (FAITH) Scholarship Program Fund.

MCDPS and MDE Responsibility 

The MCDPS would manage and oversee FESA funds on behalf of each participating child. It would provide foster parents, guardians, or responsible agency officials with guidance on eligible uses of funds and required documentation. Additionally, it would notify foster parents, guardians, and agency officials of the availability of FESA funds upon a child entering the department’s custody.

The MCDPS would work with the State Department of Education to develop policies and procedures for the administration of the FESA program to ensure the appropriate use of FESA funds, including the submission of reimbursement requests and maintenance of records.

The MCDPS would be permitted to contract with a third-party vendor to administer the FESA program and ensure compliance with state regulations.

The State Department of Education would be responsible for:

• Conducting annual audits of the MDCPS-managed FESAs;
• Establishing a process for audits of individual FESA accounts and service providers;
• Providing the MCDPS with technical assistance and training on program administration;
• Adopting a process for removing educational service providers that defraud parents; 
• Referring cases of fraud to law enforcement;
• Establishing an online anonymous fraud reporting service; and
• Establishing an anonymous telephone hotline for fraud reporting.

Requirements of Participating Schools

Schools participating in this program would be required to:

• Comply with state and federal nondiscrimination policies;
• Provide foster parents or guardians with details of the school’s programs,experience qualifications, and capacities to serve participating students, prior to the student’s application to enroll;
• Comply with all health and safety laws or codes that apply to nonpublic schools;
• Hold a valid occupancy permit if required by their municipality;
• Have no public record of fraud or malfeasance;
• Require participating students to take a pre-assessment at the beginning of the school year and a post-assessment at the end of the school year. The eligible school would have the option to select their current assessment used to show academic progress, a nationally standardized achievement test, or a current state board-approved screener;
• Notify the foster parent, guardian, or agency official applying for the FESA program that they waive the right of the participating student to an individual entitlement to a free and appropriate public education from their home school district, for as long as the student is participating in the FESA program; and
• Conduct criminal background checks on employees and exclude from employment any person not permitted by state law to work in a nonpublic school, or any person who might reasonably pose a threat to the safety of students.

Rights of Nonpublic Schools

The creation of the FESA program would not expand the regulatory authority of the state or any school district beyond what is necessary to enforce the program. The State Department of Education or any other government agency could not regulate the educational program of a nonpublic school that accepts funds from the FESA program, beyond the requirements described in this legislation. 

Reporting Requirements

Eligible schools, or the appropriate foster parent, guardian, or agency official, would be required to submit student performance data to the State Department of Education at the end of the school year, including the individual results of the pre-assessment and post-assessment. The department would be required to develop a uniformed reporting format for eligible schools to use when submitting assessment results.

The State Department of Education would provide an annual audit report to the Legislature on the FESA program, including findings and recommendations for program improvement.

The MDCPS would submit an annual report to the Legislature and the State Department of Education including information about:

• The number of students participating in the FESA program;
• Total funds disbursed and remaining balances; and
• A summary of the program’s impact on foster children’s educational outcomes.

Peer Report

The Joint Legislative Committee on Performance Evaluation and Expenditure Review (PEER) would prepare a biennial report on the program, beginning in 2027. The report would assess the efficacy of Foster Child Education Scholarship Accounts, evaluate whether current funding is sufficient, and recommend any suggested changes in state law or policy to improve the FESA program.

The report would include:

• Participating students’ satisfaction with the FESA program;
• Parental satisfaction with the FESA program;
• Participating students’ performance, pre-assessment and post-assessment, on the school’s current assessment used to demonstrate academic progress, a nationally standardized achievement test, or a current state board-approved screener;
• Participating students’ performance on Advanced Placement examinations or similar courses and any examinations related to college or university admission;
• The four-year high school graduation rates and college acceptance rates of participating students;
• The percentage of funds used for each qualifying expense; and
• The fiscal impact to the state and home school districts of the FESA program.
  

PEER would provide the Legislature with a final copy of the report of the FESA program before December 31 each year the report is due. The report would also be posted on the PEER website.

HB 1433 would take effect on July 1, 2025.

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