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.
Mason Reed 
The high-stakes legal battle surrounding CHOOSE Act funds and Alabama high school sports eligibility has officially come to an end. Governor Kay Ivey’s lawsuit against the Alabama High School Athletic Association (AHSAA) has been dismissed, bringing closure to a conflict that has shaped the landscape of state athletics over the past year. The Alabama Daily News was first to report the settlement.
The Conflict Origins
The lawsuit was initiated last fall by Governor Ivey, alongside Speaker of the House Nathaniel Ledbetter and parent Jaclyn Hall. The dispute arose after the AHSAA classified CHOOSE Act funds as financial aid, triggering existing association rules that forced students enrolling in new schools via those funds to sit out of competition for an entire year.
The CHOOSE Act allows families to access up to $7,000 per child through taxpayer-funded education savings accounts for private school tuition and related expenses.
Terms of the Settlement
Filed in Montgomery Circuit Court, the settlement agreement—dated May 28—specifically addresses the situation involving Hall’s son. Under the terms, the AHSAA and executive director Heath Harmon agreed that the student will not face restrictions or adverse action based on his use of CHOOSE Act funds. The filing also affirmed that all other standard AHSAA eligibility regulations remain in effect.
Legislative and Regulatory Shift
The dismissal follows significant legislative action. On April 14, Ivey signed the “Let the Kids play act” into law, effectively ensuring that receiving CHOOSE Act funds does not jeopardize a student-athlete's eligibility.
Following the bill's passage, the AHSAA announced that CHOOSE Act funds would no longer be classified as financial aid. Harmon provided further clarity regarding the policy shift in a discussion with 205focus.com, stating: “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.” See the full context of his comments here.
Broader Impact
The friction caused by the CHOOSE Act dispute was widely seen as a primary catalyst for the AHSAA's decision to split public and private schools for championship play beginning this fall. The AHSAA’s Central Board voted 13-2 in favor of the move during its Jan. 23 meeting.
