Families approved to unbundle their child’s education can move forward with their plans for the coming school year.
South Carolina families who have been waiting for an update on the future of “unbundling” in the Education Scholarship Trust Fund (ESTF) program have received good news.
The South Carolina Budget Conference Committee rejected a proposed budget provision that would have restricted unbundling during the 2026–2027 school year. Because the provision was removed from the final budget, returning and newly approved unbundlers can continue participating in the ESTF program.
What Does This Mean for ESTF Families?
For families approved to unbundle during the 2026–2027 school year, nothing changes.
- Returning unbundlers can continue participating as usual.
- Families approved to unbundle for the first time can move forward with their education plans.
- Approved families can use ESTF funds for qualifying education expenses in accordance with program rules.
Although the governor has line-item veto authority over the state budget, that authority only allows him to remove provisions. Because the proposed unbundling restriction is not included in the final budget, it cannot be added back through the veto process.
For all practical purposes, the decision for the coming school year is final: Approved unbundlers can move forward.
What Is “Unbundling”?
Rather than enrolling their child full-time in one participating school, an unbundling family creates a customized education plan using multiple approved providers, services, or resources.
Depending on the student’s needs and ESTF program rules, that could include a combination of eligible expenses such as tutoring, therapy, curriculum, textbooks, technology, testing, or other approved education services.
This flexibility allows parents to build an education experience around their individual child instead of purchasing every part of that experience from a single school or provider.
How Did We Get Here?
During the 2026 legislative session, lawmakers considered proposals that would have changed who could participate in the ESTF program as an unbundler.
A standalone bill seeking to restrict unbundling did not advance. A similar restriction was later proposed as part of the state budget through a one-year provision known as a proviso.
The House and Senate disagreed over whether the proposed proviso simply clarified how ESTF funds could be used or represented a significant change to existing policy. During final budget negotiations, the restriction was rejected and left out of the conference committee’s budget agreement.
Could Unbundling Be Reconsidered?
Lawmakers may consider new legislation related to unbundling after the General Assembly returns in January.
The legislative process takes time, however, and any future proposal would need to move through the regular lawmaking process. Based on the information currently available, families approved for the 2026–2027 school year can confidently proceed with their plans.
Palmetto NavigatEd will continue monitoring legislative and policy developments that may affect ESTF and unbundled families. We will share timely, accurate information when there are important updates families need to know.
Thank You to the Families and Organizations Who Spoke Up
Over the past several months, parents attended hearings, contacted lawmakers, and shared why the ability to customize their child’s education matters.
Thank you to every family who took the time to tell their story. Your voices helped lawmakers better understand how unbundling works and what this flexibility means for South Carolina students.
We also want to take a moment to thank the organizations who stood with us along the way – together we presented a unified front in favor of educational freedom, and it paid off in a big way:
- AFP – South Carolina
- Alliance for Education Freedom
- Cato Institute
- Center for Education Reform
- The Club for Growth
- EdChoice
- Education Freedom Institute
- Faith Wins
- Heritage Action
- National Microschooling Center
- Palmetto Family Alliance
- Parents for School Options
- The Roman Catholic Diocese of Charleston
- School Forward
- South Carolina Association of Christian Schools
- Upstate Homeschool Coalition
As you prepare for the coming school year, Palmetto NavigatEd is here to help you understand the ESTF program, explore your education options, and find the resources you need to move forward with confidence.
