Texas Education Freedom Accounts to Launch Next Month: Key Details for Parents
With the Texas Education Freedom Accounts (TEFA) program set to open applications on February 4, 2026, state officials are urging parents to prepare for the rollout of the state’s first universal school voucher initiative. The program, established by Senate Bill 2 in 2025 with an initial $1 billion appropriation, represents a significant shift in Texas education policy, allowing public funds to be used for private schooling and other educational expenses.
As families across the state consider their options, here are the five critical aspects of the program, along with context on the legislative debate and ongoing implementation challenges.
1. Who is Eligible to Apply
The eligibility criteria for the program are broad. Nearly all school-age children in Texas are eligible to apply, including current public school students, students already enrolled in private schools, and those entering kindergarten or pre-K. Applicants must be U.S. citizens and residents of Texas.
While the program is open to most students, participation is capped by available funding. If demand exceeds the $1 billion budget—which education policy analysts expect it will—a lottery system will be triggered.
2. Understanding the Funding Amounts
The program provides varying levels of financial support depending on the student’s educational path. Most students enrolled in accredited private schools will receive approximately $10,500 annually. This amount is derived from the average state maintenance and operations spending per student in public schools.
Students with disabilities are eligible for significantly higher funding, capped at $30,000 per year, to cover specialized services and therapies. Homeschooling families can also participate but will receive a reduced amount of $1,000 per child annually. These funds are deposited into state-monitored online accounts.
3. Allowable Expenses
The funds in these education savings accounts are not limited to tuition. Parents can use the money for a wide range of state-approved educational expenses, including:
- Tuition and fees at accredited private schools
- Textbooks, uniforms, and required supplies
- Tutoring and academic therapies
- Transportation costs to and from school
- Educational technology, such as computers and software
The Texas Comptroller’s office, which oversees the program, is responsible for auditing these accounts to prevent fraud and ensure funds are spent on approved educational items.
4. The Application Timeline and Process
The application window for the 2026-2027 school year opens on February 4, 2026, and is expected to close in mid-March. Families must apply through a centralized online portal managed by the Comptroller’s office.
Successful applicants are expected to be notified in May 2026, with funds becoming available in July, ahead of the fall semester. Because of the anticipated high volume of applications, officials recommend parents gather necessary documentation—such as proof of residency, citizenship, and disability status—well in advance of the portal’s launch.
5. Prioritization and the Lottery System
Given the budget cap, not every applicant receives funding. The state has established a tiered priority system for distributing the vouchers:
- Tier 1: Students with disabilities from low-income households (earning up to 500% of the federal poverty level).
- Tier 2: Students from families earning less than 200% of the federal poverty level (approximately $60,000 for a family of four).
- Tier 3: Students from families earning between 200% and 500% of the federal poverty level.
- Tier 4: All other applicants.
This prioritization was a key compromise during legislative negotiations, intended to address concerns that the program would primarily subsidize wealthy families already paying for private school.
Background and Controversy
The implementation of TEFA follows a contentious legislative battle in 2025. Proponents, including Governor Greg Abbott, argued that the program empowers parents to choose the educational environment best suited for their children, regardless of their zip code or income. Supporters frame the initiative as a civil rights issue, ensuring that quality education is not a privilege reserved for the wealthy.
However, the program faces significant opposition from public education advocates, rural lawmakers, and Democrats. Critics argue that diverting $1 billion to private vouchers drains critical resources from the public school system, which serves the vast majority of Texas students. Objections also center on the lack of accountability for private schools, which are not required to administer the same standardized tests as public schools or adhere to the same federal mandates for special education services.
Furthermore, opponents in rural areas have expressed concern that vouchers offer little benefit to families in communities with few or no private schools, essentially transferring tax dollars from rural districts to suburban and urban private entities. As the application date approaches, both sides remain vigilant, with potential legal challenges and future legislative adjustments likely as the program’s real-world impact becomes clear.
