The Education Freedom Account Act establishes a new program within the Public School Code in New Mexico, aimed at providing financial support for eligible students to access private education and cover qualifying educational expenses. The Act defines key terms such as "education freedom account," "eligible student," and "qualifying educational expenses," and assigns the New Mexico Department of Education the responsibility of administering the program. This includes creating education freedom accounts, determining funding amounts based on average public school spending, and ensuring that funds are used exclusively for approved educational expenses. Parents are required to enter into contracts with the department regarding fund usage and must follow an application process to establish an account for their child.

The legislation also establishes an Education Freedom Review Commission to assist in identifying qualifying expenses and improving program implementation, consisting of parents of participating students and licensed educators. New provisions include an annual reporting requirement for the department to report to the legislature and governor by December 1 each year, detailing participant demographics and financial data. Additionally, the bill creates the "education freedom account fund" within the state treasury, which will consist of appropriated funds, federal grants, and investment income, ensuring that unspent funds do not revert to the general fund at the end of the fiscal year. The bill includes a severability clause to maintain the validity of remaining provisions if any part of the act is found invalid.