The Education Freedom Account Act establishes a new program within the New Mexico Public School Code to provide financial support for eligible students seeking private education and other educational services. 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 for qualifying students, determining funding amounts based on average public school spending, and ensuring that funds are used exclusively for approved educational expenses like tuition, tutoring, and educational materials.

Additionally, the act establishes an Education Freedom Review Commission to oversee the program and make recommendations on qualifying expenses and education service providers. The commission will consist of parents and licensed educators appointed by the department's secretary. The bill also introduces an annual reporting requirement for the department to provide demographic and financial data to the legislature and governor, and it creates the "education freedom account fund" within the state treasury to support the program's administration. This fund will include appropriated funds, federal grants, and investment income, with specific allocations for fiscal year 2026 and beyond. Importantly, any unspent funds will remain available for the program rather than reverting to the general fund, and a severability clause is included to protect the act's provisions if any part is invalidated.