Ivey, AHSAA agree to settle CHOOSE Act lawsuit
Ivey signed a bill into law to ensure students who receive CHOOSE Act funds do not lose eligibility for high school sports.
Olivia Bennett 
The legal battle regarding Alabama's CHOOSE Act and its impact on high school athletics has officially reached a resolution. Governor Kay Ivey’s lawsuit against the Alabama High School Athletic Association (AHSAA) has been dismissed, bringing closure to a dispute that challenged how students utilizing education savings accounts interact with sports eligibility rules. The Alabama Daily News was first to report the settlement.
Background of the Dispute
The friction began last fall when the AHSAA determined that funds provided by the CHOOSE Act—which allows parents to use up to $7,000 in taxpayer-funded aid for private school tuition and expenses—qualified as financial aid. Under existing athletic association bylaws, this classification meant that students transferring schools using these funds were forced to sit out of competition for one year.
Governor Ivey, alongside House Speaker Nathaniel Ledbetter and parent Jaclyn Hall, challenged the policy in court. The resulting settlement, signed May 28, specifically addressed the case of Hall’s son, with the AHSAA and executive director Heath Harmon agreeing not to penalize the student or limit his participation due to his CHOOSE Act status. The Montgomery Circuit Court filing noted that while this specific student is protected, all other standard AHSAA eligibility regulations remain in effect.
Legislative Intervention
The landscape for student-athletes shifted significantly on April 14, when Ivey signed the “Let the Kids play act” into law. The legislation was drafted specifically to shield students from losing their sports eligibility simply for receiving state-funded education assistance.
Following the bill's passage, the AHSAA announced a policy shift, confirming that CHOOSE Act funds would no longer be classified as financial aid. Harmon clarified the association's new stance in a discussion with 205focus.com: “Receiving CHOOSE Act funds in and of itself will not make a child ineligible. If they are eligible by meeting all other rules and they receive CHOOSE Act funds, they would be eligible. All other rules apply.”
Moving Forward
The tension surrounding the CHOOSE Act played a significant role in broader structural changes within the state's athletics, including the move to separate public and private schools for championship play. The AHSAA’s Central Board voted 13-2 on Jan. 23 to implement this split, which is set to take effect for the first time this coming fall.
