@mike @fulner
Setting up a homeschool welfare system would require regulatory overreach (as fulner mentioned) and still be ripe for fraud.
The biggest obstacle to homeschooling is that both parents have to work outside the home. Throwing even a few thousand dollars at parents won't help very much with that.
If money ends up being deallocated from the Dep of Edu, I imagine it is best to just decrease the national deficit/debt by not borrowing that money in the first place.