SC Supreme Court strikes down part of education scholarship program

COLUMBIA, S.C. (WSPA) – The South Carolina Supreme Court on Wednesday struck down a portion of the Education Scholarship Trust Fund Act, ruling the state’s constitution prohibits the use of public funds for private schools.

The Education Scholarship Trust Fund Act (ESTF) allows qualifying parents to apply for $6,000 state scholarships to use towards their children’s education.

“This is a choice program, that parents can use to just customize, to create a program for their child,” said Oran Smith, a senior fellow with the Palmetto Promise Institute, a nonprofit that researches public policy and state legislative issues. “Every child is different, every child learns differently, not every school is right for every child, this allows parents to do that customization that matches the needs of their child.”

This school year was the first year for the program and parents were able to use awarded funds for various educational expenses , including tuition, school supplies, and transportation.

“Parents can receive funds in a portal, an online portal and then the parents on behalf of their children can direct those funds to a wide range of educational providers. Private schools, public schools, therapy, tutoring, lots and lots of different options,” Smith said.

Up to 5,000 scholarships were available for the 2024-2025 school year. That number will rise to 10,000 scholarships in the 2025-2026 school year and 15,000 scholarships in all subsequent years.

The ESTF was signed into law by Governor Henry McMaster in May 2023.

Governor Henry McMaster said the ruling “may have devastating consequences for thousands of low-income families who replied on these scholarships for their child’s enrollment in school last month.”

The Supreme Court’s ruling removes a portion of the law which allowed payments for “tuition and fees for an approved nonpublic online education service provider or course” and stops the Department of Education from paying scholarship money for tuition and fees of nonpublic educational service providers.

The South Carolina Department of Education said the agency halted payments for tuition and fees for nonpublic schools as required by the order.

Agency spokesperson Jason Raven said the department will work with parents to “assess viable alternatives for their children if continued attendance at their current school is no longer an option.”

Raven reiterated that the order does not affect any of the program’s other allowable expenses and does not require the agency to recoup any payments that have already been made.

In a statement released Wednesday, State Superintendent of Education Ellen Weaver said she disagreed with the decision and said she remained “committed to working with the governor and General Assembly to find a way forward to support these students and education freedom for all South Carolina families.”

“The late timing of the initial filing and subsequent ruling on this case midway through the first quarter of the new school year wreaks havoc on the participating students and their families,” said Weaver. “These students deserve better, and I will not rest until they get it.”

Palmetto Promise Institute claimed in a statement that the ruling will impact 2,880 children in the program.

Sherry East, president of the South Carolina Education Association, said the organization is “grateful that our court has confirmed that public funds are confined for public education.”

“This decision today by our state’s highest court is a great victory for public educators and families across the state who support South Carolina’s public schools,” East’s statement continued. “Thanks to the parents, the South Carolina State Conference of the NAACP and to all who joined us to advocate the importance of investing in public schools rather than diverting critical funds away from them.”

McMaster said they will ask the court to reconsider the decision.

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