Legislators Ask Arkansas Department of Education About Delays in EFA Reimbursements

On Friday, the Arkansas Legislative Council (ALC) accepted a subcommittee’s approval of new Education Freedom Account (EFA) rules from the Department of Education. During discussion of the rules, lawmakers asked staff members from the Department of Education about delays in EFA reimbursements, and the department acknowledged that approval currently takes 30 days.

Arkansas created the EFA program in 2023, making it possible for students to use public funds to pay for an education at a public or private school or at home. Thousands of homeschool students have taken advantage of the program and test scores show they are excelling.

But earlier this spring the Arkansas Department of Education approved new administrative rules restricting how homeschoolers spend EFA funds on extracurricular activities and establishing complicated preapproval and reimbursement requirements for homeschoolers. Homeschoolers submitted comments to the State and testified in committee that approval for EFA expenses already takes weeks or months. The process created under these rules could take even longer.

The Arkansas Legislature’s Administrative Rules Subcommittee approved the rules without objection at its June 15 meeting, following some three hours of testimony from the Department of Education and from homeschoolers who are deeply concerned about changes the rules make to the EFA program.

On June 19, ALC accepted the subcommittee’s approval of the rules, but Sen. Terry Rice (R — Waldron) asked the Department of Education about the lengthy delays in approvals and reimbursements under the EFA program.

During discussion, the Department of Education indicated it has chosen to review EFA expenses and reimbursements in-house using department staff instead of outsourcing that responsibility to its vendor, Class Wallet, who is helping the state administer the EFA program.

The department also acknowledged that it currently takes its staff approximately 30 days to review expenses and approve reimbursements for homeschoolers, but says it is committed to reducing that timeframe.

You can watch the lawmakers’ discussion with the Department of Education here.

Articles appearing on this website are written with the aid of Family Council’s researchers and writers.

Lawmakers Approve EFA Rules Despite Homeschoolers’ Concerns

Above: The Administrative Rules Subcommittee approved the new EFA restrictions despite concerns homeschoolers voiced about unintended consequences from the rules.

On Monday, a legislative subcommittee approved a new slate of Educational Freedom Account (EFA) rules despite strong concerns voiced by homeschoolers in the EFA program. The new rules are slated to take effect July 1.

Arkansas created the EFA program in 2023, making it possible for students to use public funds to pay for an education at a public or private school or at home. Thousands of homeschool students have taken advantage of this great program and test scores show they are excelling.

But earlier this spring the Arkansas Department of Education approved new administrative rules restricting how homeschoolers spend EFA funds on extracurricular activities and establishing complicated preapproval and reimbursement requirements for homeschoolers.

We have written repeatedly about how the wording in these rules carries unintended consequences for homeschoolers in the EFA program and won’t help save the State money.

On Monday, the Arkansas Legislative Council’s Administrative Rules Subcommittee approved the new EFA rules despite written comments from some 200 or more homeschoolers expressing concerns about unintended consequences from the rules and despite several homeschoolers travelling to the Capitol to voice their concerns in-person at the committee meeting.

During the meeting, some lawmakers indicated they believe homeschoolers should be more regulated and that the EFA program does not have to be fair to homeschoolers.

The EFA program is voluntary, and whether a family participates in it or not is up to them. But if a family chooses to homeschool under the EFA program, the rules ought to be fair for everyone.

In the past the Arkansas Department of Education has utilized workgroups that relied on input from parents in the EFA program to ensure EFA rules worked properly and did not carry unintended consequences. In this case, policymakers approved the rules despite concerns from stakeholders in the program.

Family Council and the Education Alliance deeply appreciate the homeschoolers who were willing to comment and testify on the unintended consequences from these rules, and we plan to work with homeschoolers to make sure they are treated as fairly as possible under the EFA program.

Articles appearing on this website are written with the aid of Family Council’s researchers and writers.

Here is an Overview of Some of the Concerns Homeschoolers Have Raised About New EFA Rules

Lawmakers on the Administrative Rules Subcommittee will hold a hearing to discuss new Educational Freedom Account rules in Little Rock this Monday, June 15.

The meeting will take place at 1:30 p.m. in Room A of the Multi-Agency Complex (Big MAC) next door to the Capitol Building at 1 Capitol Mall, Little Rock, AR 72201.

The meeting will be open to the public, and homeschoolers may have an opportunity to testify.

Since late last year, homeschoolers have expressed concerns about the new rules again and again to the Department of Education and other policymakers.

Below are a few examples of the concerns that homeschoolers, our organization, and others have raised about the rules.

The New EFA Rules Carry Unintended Consequences for Homeschoolers

The new EFA rules carry a number of unintended consequences that could affect homeschoolers in the EFA program.

For example, the rules create a bureaucratic preapproval process that could unintentionally force families to wait too long for approval or reimbursement of educational supplies and equipment necessary for courses. Homeschoolers tell us approval for EFA expenses is already taking weeks or months. The process created under these rules could take even longer.

The rules also prevent homeschoolers from spending any EFA money on “sports that restrict or limit participation based on tryouts or ability.” That would unintentionally exclude homeschoolers from spending EFA money on many typical junior high and high school athletic programs. State law already caps EFA spending in these areas, but the rules contain restrictions that go beyond state law and could have unintended consequences for many families.

The rules also contain language that could permanently remove families from the program for honest mistakes with their EFAs. Instead of giving families an appeal process or a way to correct honest mistakes, subsection (C) on page 35 of the rules would simply make families ineligible for the EFA program.

The Department of Education could fix these unintended consequences by clarifying the language in the rules and by ensuring that the rules do not burden families in the EFA program with more bureaucracy.

The Department of Education Acknowledged that the EFA Rules are Unfair to Homeschoolers When It Took Public Comments in April

The Department of Education has received hundreds of comments regarding the new rules, and many of those comments have expressed concerns that the new rules would go beyond state law and hurt homeschoolers participating in the EFA program.

But in its responses last April, the Department of Education wrote: “The division respectfully rejects the premise that the goal of the EFA program in the homeschool context is or should be to provide equity between public or private schools and homeschooling.”

In other words, the Department of Education seems to understand that the rules are unfair, but it does not believe that the EFA rules have to treat homeschoolers fairly. That’s troubling.

The Rules Won’t Save the State Money on the EFA Program

The State’s transparency website reports that since July 1, 2025, Arkansas has spent over $251 million on the EFA program. We believe that money is a good investment in students and families across Arkansas, but some people may feel the State cannot sustain the program without cutting costs.

However, restricting homeschoolers in the EFA program won’t save the State of Arkansas money. Here are three reasons why:

1. Most EFA money goes to private school students and private school tuition.

Since the program began in 2023, most EFA money has paid for private school tuition.

State reports show that last year, four out of every five EFA dollars went toward private school tuition and fees.

Homeschoolers spend a fraction of the EFA money that private school students do — which means the State would save very little money by restricting homeschoolers.

2. Of the EFA money that homeschoolers spend, 90% of it is on core educational expenses.

Some people believe the State could save money by preventing homeschoolers from spending EFA money on athletics and extracurricular programs, but state law already caps spending in these areas.

Last year, homeschoolers spent only 8% of their EFA money on “enrichment” activities like PE and athletics, music and art, or other extracurricular activities. The rest of the money paid for homeschoolers’ educational supplies, curriculum, class fees, tutoring, and other educational expenses authorized under the LEARNS Act.

Preventing homeschoolers from spending EFA money on certain athletic programs is unfair. It fails to track with state law, and it would save the State very little money.

3. The new preapproval process in the EFA rules adds bureaucratic barriers for families spending Educational Freedom Account money on legitimate expenses, but those barriers won’t help the State save money.

State law and state rules already outline approval and reimbursement processes for EFA spending. The new rules add bureaucracy that will make those processes slower and more frustrating for homeschool families.

Homeschool students often must itemize their EFA transactions for approval because one family may use multiple curriculum providers, tutors, or suppliers. Each of those transactions may be handled separately.

EFA funds used for private school supplies and equipment do not have to be preapproved by the Department of Education.

Many homeschoolers tell us the current approval process for their EFA spending can take weeks or even months. The new preapproval requirements in the EFA rules would simply slow that process down even more.

There is little reason to believe that making the process slower or more cumbersome would save the State money.

If the State of Arkansas is concerned about EFA spending, there may be ways to adjust the EFA program and cut costs. However, these new rules fail to do that.

Conclusion

We are encouraging homeschoolers to contact the lawmakers on the Administrative Rules Subcommittee to share their concerns about the unintended consequences of the EFA rules.

Below is contact information for the committee members:

Senator Tyler Dees
tyler.dees@senate.ar.gov
479-549-5057

Representative Matthew Shepherd
matthew.shepherd@arkansashouse.org 
870-862-2087

Senator Kim Hammer
kim.hammer@senate.ar.gov 
501-840-3841

Representative Lane Jean
lane.jean@arkansashouse.org
870-904-1856

Senator Breanne Davis
breanne.davis@senate.ar.gov
479-970-0081

Senator Jonathan Dismang
jonathan.dismang@senate.ar.gov
501-766-8220

Senator Bart Hester
bart.hester@senate.ar.gov
479-531-4176

Senator Missy Irvin
missy.irvin@senate.ar.gov
870-740-9694

Senator Blake Johnson
blake.johnson@senate.ar.gov
870-323-1766

Senator Terry Rice
terry.rice@senate.ar.gov
479-650-9712

Representative Mary Bentley
mary.bentley@arkansashouse.org
501-889-3556

Representative Jon Eubanks
jon.eubanks@arkansashouse.org
479-438-0533

Representative Brian Evans
brian.evans@arkansashouse.org
501-941-4002

Representative Steve Hollowell
steve.hollowell@arkansashouse.org
870-270-3831

Rep. Stetson Painter
stetson.painter@arkansashouse.org
501-733-3203

Representative DeAnn Vaught
deann.vaught@arkansashouse.org
870-584-8807

Senator Justin Boyd
justin.boyd@senate.ar.gov
479-221-5864

Senator Ben Gilmore
ben.gilmore@senate.ar.gov
501-467-5952

Representative Les Eaves
les.eaves@arkansashouse.org
501-827-1344

Representative Jack Ladyman
jack.ladyman@arkansashouse.org
870-340-7499

Articles appearing on this website are written with the aid of Family Council’s researchers and writers.