In a win for thousands of South Carolina families, Governor Henry McMaster signed the Education Scholarship Trust Fund Act—a law that will bring school choice back to the Palmetto State.
The law will give eligible students $7,500 to pay for education-related expenses, including private school tuition. The program will initially be available to families earning up to 300% of the federal poverty line, with plans to expand eligibility to those earning up to 500%.
The Education Scholarship Trust Fund is near-universal program, with 85% of South Carolina families eligible for the program within the next two years. It will be funded either through a lottery or the general fund, depending on what the Legislature decides each year.
The Palmetto Promise Institute was a critical reason why this reform advanced. Through legislative outreach, testimonies, research, blog posts, social media campaigns, and media placements, Palmetto highlighted how school choice would benefit South Carolina students—especially those from low-income backgrounds.
But perhaps the biggest impact Palmetto had was through its storytelling campaign and close relationships with South Carolina families and schools.
These relationships grew after South Carolina’s first Education Savings Account (ESA) was struck down by the State Supreme Court in September 2024. In the middle of the school year, the Court ruled the program unconstitutional, leaving more than 800 students without a way to pay for tuition at their new schools.
Devastated parents whose children were enrolled in the ESA program—and were now left in limbo— reached out to the Palmetto Promise Institute, asking for help and clarity about what the ruling meant for their child’s education and future.
Palmetto stepped in to help these students and their families—launching the ESA Rescue Fund to cover tuition so these children could remain at their schools. But the Institute didn’t stop at financial support.
Having been in near-daily contact with distraught families and school leaders, the Palmetto team created a campaign to share these stories with lawmakers. In several videos, Palmetto recorded more than 40 moving personal testimonies from parents whose children lost access to the education they need to succeed. In each video, parents made heartfelt appeals, urging lawmakers to restore the program.
Palmetto ended up raising $2.5 million to cover tuition for these families while they waited for state leaders to act.
After the Supreme Court struck down the program, a top priority of Palmetto was advancing legislation that would pass constitutional muster. Their campaign paid off in April 2025, when the South Carolina Legislature passed S.62, which not only restored South Carolina’s ESA program but also expanded and strengthened it. The new legislation also removes the need for further fundraising to cover tuition for the 2024-2025 school year.
On May 7, 2024, the governor signed the bill into law, opening doors to education opportunity for thousands of South Carolina children.
Wendy Damron, CEO of the Palmetto Promise Institute, noted: “After the courts struck it down the first time, South Carolina came back stronger. This new ESA law finally gives low and middle-income families a reliable path to choose the education their child deserves. It’s a win for freedom, opportunity, and our kids.”
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American Federation for Children
