Senator Grove's proposal to establish education savings accounts for private school expenses marks California's most substantial shift toward school choice, creating a state-managed system that would provide eligible families with dedicated funds for private education costs.

The School Choice Flex Account Act would establish two types of education accounts within a new state trust: standard School Choice Flex Accounts (SCFAs) offering $8,000 annually and Special Education Flex Accounts (SEFAs) providing $16,000 yearly for students with exceptional needs. The program would phase in eligibility over four years, starting with families earning under $50,000 for single filers or $100,000 for joint filers in 2027-28, expanding to families earning up to $100,000/$200,000 in 2029-30, and opening to all families by 2031-32.

A new School Choice Flex Account Trust Board would oversee the program, managing account investments and disbursing monthly payments directly to accredited private schools for tuition and eligible expenses like books, supplies, and tutoring. The board would include representatives from the existing Scholarshare Investment Board, the Superintendent of Public Instruction, and appointees representing religious and non-religious private schools. Administrative costs would be capped at 1% of total program funds.

The proposal maintains existing education funding mechanisms by adjusting the Proposition 98 minimum guarantee calculations to account for participating students. Costs would be shared between state and local sources using the same ratio currently used for public school funding in each district. The bill also excludes account distributions from state taxable income and requires unused funds to return to state education coffers annually. Implementation depends on voter approval of a related constitutional amendment in November 2026.