Tennessee recently passed HB 2533, a broader education bill that included changes to the state’s Individualized Education Account (IEA) program for students with disabilities. One of the controversial changes within the bill, effective July 1, 2026, prohibits families from transferring IEA funds into ABLE accounts (Achieving a Better Life Experience accounts), which previously offered families a way to utilize IEA funds in a way best determined by the parent/caregiver.

For some families, this is more than a bookkeeping change—it fundamentally alters how they can support a child with significant disabilities.  The policy aims to significantly limit the non-public schools parents can choose to send their special needs child to leaving them in limbo - uncertain of where their child will go to school next year.   If IEA funds were used according to the current IEA restrictions consumable items commonly found in classrooms like crayons, paint, paper, ink, dry erase marks, pens, and pencils could not be purchased.  Software for alternative communication and could not be purchased.  Tutors would have to meet very strict educational credentialed requirements and be able to be paid for their services 4 times a year only.  Children with autism or complex behavioral needs may have aggressive episodes, elopement risk, or highly individualized care requirements. A hired tutor or instructor may understandably leave if they are hit, bitten, or repeatedly placed in difficult situations. Family members on the other hand that are asked to homeschool children will continue providing that education because of trust, consistency, emotional commitment, and years of specialized understanding.  Under the IEA funding rules families cannot get any benefit for homeschooling a special needs relative.  

By limiting how these funds can be used, the law ends up punishing the very families who need the most support—families already stretched thin, exhausted, and doing everything they can to care for a child with special needs.   If the concern is insufficient oversight of ABLE fund usage, the solution is to strengthen oversight, not to repeal the option entirely.