The Growth of Voucher Programs in Indiana and the Challenges for Rural Students
The Christian Academy of Indiana, located near the Kentucky border, attracts students from 56 different ZIP codes across southern Indiana. Some students travel as far as 30 miles to attend, coming from counties that don’t have any private schools. These families make the daily commute—often carpooling—because they value the school’s environment, extracurricular activities, and its Christian teachings. Lorrie Baechtel, the director of admissions at the academy, noted that while there are many good public school options in Indiana, families choose the Christian Academy for its mission-driven approach.
The school’s enrollment has grown significantly over the past four years, partly due to the expansion of the Choice Scholarship, Indiana’s main voucher program. This program has made tuition more affordable for many families. In the 2024-2025 school year, over 1,200 students attended the academy, up from around 700 in 2021-22. This trend reflects a broader shift in Indiana, where voucher use has increased as lawmakers have relaxed eligibility requirements. By 2026, the program will be available to all families, regardless of income.
However, the success of voucher programs in attracting students does not translate evenly across the state. Rural students are not using vouchers at the same rate as their urban and suburban counterparts. One reason is that one-third of Indiana counties do not have a private school that accepts vouchers within their borders. Additionally, distance plays a significant role in parents’ decisions about school choice.
As a result, students living closer to urban centers—where voucher-accepting private schools are more common—may use vouchers at rates up to 30 percentage points higher than those in neighboring rural districts. This disparity could become even more pronounced when the Choice Scholarship becomes fully available in 2026 and when new federal tax credit-funded scholarships begin in 2027.
Jon Valant, director of the Brown Center on Education Policy at the Brookings Institution, said, “If there are no schools there for you to attend, it’s unlikely it’s going to be all that useful for you.”
Public education advocates argue that splitting state school funding between vouchers and public schools leaves less money for rural public schools. Chris Lagoni, executive director of the Indiana Small and Rural Schools Association, compared the situation to hosting a larger number of guests at a dinner: “We’re inviting more and more folks to Sunday dinner. It’s a little bit of a bigger meal, but a lot more guests.”
Despite these concerns, Indiana’s Republican lawmakers have dismissed fears about the impact on rural public schools. They argue that rural voters support school choice and that parents want educational options, whether through private, charter, or traditional public schools.
School choice advocates believe that the latest expansion of the Choice Scholarship, along with growing interest in smaller learning environments and the rise of voucher-accepting online schools, may increase access to private education in rural areas in the near future.
Eric Oglesbee of the Drexel Fund, a nonprofit organization that supports new private schools, said, “I think we’re best when we have a robust ecosystem of private and public options.”
Location Matters in Accessing Private Schools
Across Indiana, around 76,000 students received vouchers for the 2024-25 school year—an increase of about 6,000 from the previous year. The program cost the state $497 million last year, with the average voucher recipient coming from a household with just over $100,000 in income.
However, approximately one-third of Indiana counties lack a private school that accepts vouchers within their borders. A Chalkbeat analysis of state data shows that voucher use is lower in rural areas compared to urban ones. For example, around 16% of students in the Madison school district in southern Indiana use vouchers, but this rate drops to as low as 1% in nearby rural districts.
Distance is a key factor in how parents choose schools. A 2024 survey by EdChoice found that about half of parents would drive a maximum of 15 minutes for their children to attend a better school, while a quarter would drive no more than 20 minutes, and another quarter would go up to 30 minutes.
Concerns about limited access to voucher-accepting schools in rural areas have existed for years. Alli Aldis of EdChoice highlighted a 2018 report that referred to parts of rural Indiana as “schooling deserts,” estimating that around 3% of Indiana students lived more than 30 minutes from a charter, magnet, or voucher-accepting private school during the 2017-18 school year.
Starting a new school, especially in rural areas, comes with challenges like finding a building and securing funding. A 2023 Drexel Fund report found that facilities in the state are inadequate for new entrants, though real estate is both affordable and available. However, there is no public source of funding for facilities, and surplus buildings are not accessible to private schools.
New laws in Indiana, such as House Enrolled Act 1515, aim to address these issues by allowing voluntary school facility pilot programs that encourage flexibility in what counts as a school facility. Oglesbee noted that the Drexel Fund is seeing an increase in interest from potential new private schools, possibly due to the recent expansion of voucher eligibility.
Community Support and Challenges in Opening New Schools
Opening a private school requires more than just a building—it also involves hiring staff and recruiting students. In rural areas, where both the student population and licensed teachers are fewer, this can be particularly challenging. Oglesbee emphasized that a school is more likely to succeed if the community actively requests it.
At a recent conservative policy conference, Indiana House Speaker Todd Huston expressed optimism about the demand for school choice in rural areas, noting that no Republican lawmaker had been defeated in a primary for supporting the policy.
However, Indiana voters have not had a direct say on school vouchers, and there is no legal avenue to overturn the policy, according to Chris Lubienski of the Center for Evaluation and Education Policy at Indiana University. In contrast, voters in Kentucky and Colorado rejected school choice ballot measures in 2024, while Nebraska voters partially repealed a state-funded scholarship program.
Lubienski noted that some rural residents may support school choice in the form of transfers between public school districts rather than vouchers. Meanwhile, the Rural Schools Association believes that any school receiving state funds should meet the same standards of transparency and accountability.
Huston remains confident that voucher usage will continue to grow once the program becomes universal in 2026-27. “We want to make sure our policies align with what works best for families,” he said.
Financial Strain on Rural Public Schools
With more school options available, rural public schools face pressure to compete, often leading to closures and consolidations. Vigo County schools recently announced plans to close two rural elementary schools as part of a strategy to renovate facilities and offer more programming. While voucher use has increased slightly, it is not the main driver of declining enrollment.
Without their nearest public elementary schools, students may have to travel by bus for over 30 minutes to reach the nearest school. Community members have started a petition to save one of the schools, Hoosier Prairie Elementary School, emphasizing the importance of the school beyond just education.
Rural schools often serve as economic and social hubs, providing jobs and fostering a sense of community. Lubienski noted that schools are central to how people view themselves and their communities. While private schools can play a similar role, advocates argue that more educational choices can strengthen communities.
Alli Aldis of EdChoice said, “If people have stronger educational options, more choices, that only strengthens the community.”
