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Lawmakers debate 'unbundlers' and scholarships in extended ESTF discussion; committee requests audit and signals temporary fixes

South Carolina Senate Education Committee · March 11, 2026

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Summary

Committee reviewed the Education Scholarship Trust Fund and the emergence of 'unbundlers' (homeschool 4) receiving scholarships; staff said about 10,000 scholarships exist with roughly 1,200 current unbundler recipients and 15,000 scholarships expected next year. Senators asked for a legislative audit and discussed using provisos or budget tools to pause expansion while definitions and impacts are studied.

The committee engaged in an extended conversation about the Education Scholarship Trust Fund (ESTF) and an emergent interpretation by the department that a homeschool‑4 or 'unbundler' option allows certain homeschool arrangements to access scholarship funds.

Research director Donna Barton (S9) walked members through the bill language the committee proposed to clarify whether the program allows the unbundler option. Barton said the department had issued guidance and that prior statutory language was intended to exclude homeschoolers from certain scholarship eligibility; the department’s interpretation prompted concern among members about whether that was the legislature’s intent. She told the committee the program counted about 10,000 scholarship recipients this year, about 1,200 of whom used the funds for homeschool‑style arrangements (about 12%). She also said the department had already notified families of 15,000 scholarships for the coming year and estimated roughly 2,500 could be unbundlers.

Several senators urged caution. Senator Massey (S10) proposed the State School Board, rather than the Department of Education, be the enforcement entity for withholding funds if compliance became an issue; members discussed directing the school board to instruct the department on withholding. Senator from Greenville (S12) and others emphasized protecting families who had already received awards and suggested holding awards steady at current counts via proviso rather than altering permanent law.

Members asked staff for greater transparency on how unbundlers use funds (programs, services, and per‑student drawdown of the $7,500 allocation). The committee requested a Legislative Audit Council review and discussed using provisos in the budget cycle to pause further awards beyond current recipients until definitions and accountability structures are resolved. The committee did not act to change permanent law on the topic and adjourned for lack of quorum.