In a closely split decision, the South Carolina Supreme Court ruled 3-2 today in favor of the plaintiffs in Eidson et al. v. SC Department of Education et al., declaring the Education Scholarship Trust Fund (ESTF) program unconstitutional.
The decision blocks the distribution of ESTF scholarships for the 2024-25 school year, leaving nearly 2,900 low- and moderate-income students without the promised financial aid for educational expenses.
Associate Justice Hill, who authored the court’s majority opinion, stated that the program violated the South Carolina Constitution’s ban on direct state funding for private schools, citing Article XI, Section 4, which was established in 1895.
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Although the Constitution was amended in 1972 to allow indirect state support for private schools, the court found that the ESTF constituted direct aid, which remains prohibited.
The ruling has significant consequences for 2,880 students who were approved for the scholarships. These scholarships were intended to give students and their families the opportunity to choose from a variety of educational services, including private and public schools. The scholarships, with an initial round of $1,500 payments, were already distributed to the students’ accounts, ready to cover expenses such as tuition, school supplies, tutoring, and therapy. Now, with the program halted, the future of these students’ educational plans remains uncertain.
The ESTF, modeled after the growing trend of “Education Scholarship Accounts” (ESAs) in other states, was intended to provide flexible funding to help parents customize their children’s education. ESAs, first introduced in Arizona in 2011, have since been adopted by 17 states. However, South Carolina’s version of the program had stricter eligibility criteria, including a household income cap of 200% of the federal poverty line (around $62,000 for a family of four) and a requirement that the student attended a public school the previous year.
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Palmetto Promise Institute President Wendy Damron found the ruling baffling. “Today, a court overturned a duly passed piece of legislation on the basis of an indefensible misreading of the words of our State Constitution. Prekindergarten students and college students enjoy state programs that allow them to attend private and religious schools. How is a program for K-12 students any different?” Damron said. “It is unconscionable that the Supreme Court would rip away these scholarships from children and families counting on the funds for their education this year.” Palmetto Promise Institute introduced the ESA concept to the state nearly a decade ago.
Damron also urged State Superintendent Ellen Weaver and State Treasurer Curtis Loftis to appeal the ruling, referencing the U.S. Supreme Court’s past decisions that have found state-level “Blaine Amendments”—which bar public funds from going to religious or private schools—unconstitutional. “A decision on the basis of South Carolina’s Blaine Amendment flies in the face of these rulings,” she added. “I hope Ms. Weaver and Mr. Loftis will appeal so that parents can choose the best educational fit for their children.”
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The Palmetto Promise Institute, which introduced the ESA concept to South Carolina in 2015, has been a long-time advocate of the program. The organization continues to argue that the flexibility offered by these scholarships allows parents to tailor education services to meet their children’s unique needs, whether through tutoring, therapy, or private school tuition.
As the future of the ESTF program hangs in the balance, families and education advocates are awaiting further legal developments, with the possibility of an appeal to higher courts.
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