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.
Ryan Cooper 
The high-stakes legal battle surrounding the AHSAA and CHOOSE Act funds has officially come to a close. Governor Kay Ivey’s lawsuit against the association has been dismissed, clearing the air for student-athletes across the state. The Alabama Daily News was the first to report the settlement details.
The Origins of the Dispute
Last fall, Governor Ivey, along with House Speaker Nathaniel Ledbetter and parent Jaclyn Hall, took legal action against the AHSAA. The tension stemmed from the association’s determination that funds from the CHOOSE Act—which provides up to $7,000 for private school tuition and expenses—counted as financial aid. Under previous AHSAA regulations, this classification forced students using these funds to sit out of athletic competition for an entire year after transferring schools.
Settlement and Eligibility
The formal settlement agreement, dated May 28, centers on Hall’s son. Per the filing in Montgomery Circuit Court, the AHSAA and executive director Heath Harmon agreed that the student will not face restrictions or adverse action based on his status as a CHOOSE Act recipient. The agreement affirms that while these funds do not penalize eligibility, all other standard AHSAA athletic rules remain in full effect.
A Legislative Fix
This resolution follows the April 14 passage of the “Let the Kids Play Act,” a bill signed into law by Governor Ivey to protect the eligibility of student-athletes receiving CHOOSE Act support. Following the signing, the AHSAA clarified its position, stating that CHOOSE Act funds would no longer be classified as athletic-related financial aid.
In a previous discussion with 205focus.com, Harmon explained the shift: “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.” The AHSAA had announced this policy change just one day after the bill was signed.
Impact on State Athletics
The CHOOSE Act controversy was widely considered a catalyst for the major shift in Alabama sports: the separation of public and private schools for championship play. The move, which is slated to take effect this fall, was finalized after the AHSAA’s Central Board voted 13-2 in favor of the split on January 23.
