Indiana Voucher Program Shifts Toward High-Income Households

Data for the 2025-26 academic year shows more Indiana Choice Scholarship vouchers went to wealthy families than lower-income ones.

Updated on Oct. 26, 2026 in Financial Aid

Bold flat-color editorial illustration in deep red and cream showing a stylized arched school entrance as an informational graphic. — New 2025-26 data shows Indiana's Choice Scholarship voucher program now awards more funding to wealthy households than low-income students following legislative changes. AI Illustration. Upload story photo >

Live Poll

Should the state limit school voucher eligibility based on a family's household income?

During the 2025-26 period, Indiana Choice Scholarship vouchers were awarded to 36,300 students from households earning over $100,000. In comparison, approximately 30,100 students from households earning less than $100,000 received the same funding.

Why it matters

The program, which cost $548 million, was originally approved in 2011 to support disadvantaged students underperforming in their assigned schools. Eligibility shifted significantly after the state removed the maximum income cap in July 2026.

The state voucher program cost $548 million for the 2025-26 school year. This distribution occurs in a state where the median household income is $71,957.

The players

Vernon Smith

He is a State Representative who has publicly criticized how the state allocates Choice Scholarship voucher funds.

Indiana General Assembly

This is the state legislative body responsible for approving the voucher program and adjusting its eligibility requirements.

The details

The General Assembly voted to eliminate the maximum income cap for the program, a change that took effect in July 2026. State Representative Vernon Smith has publicly criticized the current distribution of these state funds.

The Indiana General Assembly approved the voucher program in 2011.
The income cap for voucher eligibility was removed in July 2026.
More vouchers went to high-income families during the 2025-26 school year.

Culture Shift

The evolution of the Indiana Choice Scholarship program mirrors a broader trend of expanding private school voucher eligibility beyond low-income families. This shift moves the policy away from its historical focus on supporting students underperforming in assigned public schools.

Families in Indiana should note that voucher eligibility no longer depends on income levels, potentially affecting how they plan for private school tuition costs. Households may need to re-evaluate their educational budgeting based on these updated state program standards.

The takeaway

The removal of income caps has fundamentally altered the demographic reach of the state's voucher system. Residents should review current eligibility guidelines to determine how these changes impact their own household educational planning.