The U.S. Department of Education sent guidance to chief state school officers in early 2026 instructing them on how existing flexibility in Title I of the Elementary and Secondary Education Act can be leveraged to support school choice initiatives, implementing President Trump's executive order on "Expanding Educational Freedom and Opportunity for Families." Under the guidance, states can use up to 3 percent of their Title I formula allocation — the program's roughly .4 billion pot of funds directed at schools with high proportions of low-income students — to provide direct student services including advanced courses, dual enrollment, tutoring, personalized learning, and participation in out-of-school programs. The guidance, published on the Department of Education's official website, allows eligible services to be provided at private, public, or charter schools. Education Week confirmed the guidance and reported that it represents the first formal federal authorization of using Title I funds to support private school attendance.

The guidance builds on and dovetails with the One Big Beautiful Bill's federal tax-credit scholarship program, which allows individual taxpayers to redirect up to ,700 of their federal tax liability to nonprofit scholarship-granting organizations that fund private school tuition. Education Week reported in January 2026 that governors in 27 states had enrolled or announced plans to enroll in the tax-credit scholarship program; in Alaska, Colorado, Nebraska, and North Dakota — states without prior private school choice programs — the federal program will be the first full-fledged private school choice mechanism available to families. Conservative education reform advocates called the combination of the tax-credit scholarship and Title I flexibility a "historic expansion of educational freedom at the federal level."

NPR and left-leaning education researchers raised substantive concerns about both programs. Title I was created in 1965 specifically to address the educational disadvantage of children in low-income public schools; the program's formula directs funds to public school districts based on their count of students from low-income families. Redirecting even a small percentage of Title I toward private school choice, critics argued, diverts resources from the program's statutory purpose. K-12 Dive reported that the House Appropriations Committee passed a separate measure in September 2025 that would cut Title I funding by 26 percent for fiscal year 2026 — a potential reduction of nearly .8 billion from the program's baseline — a cut that education advocates said would dwarf the impact of any school choice expansion.

The Department of Education under Secretary Linda McMahon has emphasized that states have significant flexibility in implementing the Title I guidance and that no state is required to redirect funds toward school choice programs. Supporters argue that in a post-COVID landscape where urban public school enrollment has declined by 5 to 7 percent and private school enrollment has grown, the guidance reflects a pragmatic acknowledgment that federal education dollars should follow students rather than institutions. The House Appropriations Title I cut remained in conference as of March 21 and had not yet been enacted into law, leaving a significant fiscal uncertainty over how much Title I funding will actually be available for any purpose in fiscal year 2026.