Texas families can begin applying on Wednesday for new education freedom accounts that provide public funds for private schooling, homeschooling, or other approved expenses, with priority given to students with disabilities and lower-income households.
The program, known as Texas Education Freedom Accounts (TEFA), was created through Senate Bill 2, which Gov. Greg Abbott signed into law on May 3, 2025. It took effect September 1, 2025, and will distribute money for the 2026-27 school year, capped at $1 billion and 90,000 students overall.
Administered by a Certified Educational Assistance Organization selected by the state comptroller, the accounts allow parents to withdraw children from public schools and use state money for eligible non-public options.
Funds can cover tuition, school breakfasts and lunches, uniforms, tutoring, online education programs, therapies or special services for students with disabilities, textbooks, instructional materials, transportation to approved providers, and computer hardware and software.
For most students at eligible private schools, the standard award is 85% of the statewide average per-student public school funding, which the Texas Education Agency has set at $10,474 per child for the 2026-27 school year.
Based on that figure, the standard award for private school students would be about $8,902.
Children with disabilities may receive up to $30,000 annually, while homeschool families can get up to $2,000 per student for curriculum and materials.
Payments will be made in installments, with at least 25% due by July 1 for deposits, tuition, or purchases, followed by additional amounts in the fall and the remainder after enrollment verification.
To be eligible for the funds, the student must be a U.S. citizen, national, or lawful resident able to attend a Texas public school.
All qualifying families may apply, but awards are prioritized as follows: students with disabilities, lower-income families, middle-income families, and all other eligible applicants.
Siblings are approved if one family member qualifies, and accounts remain active yearly with an annual intent to continue, allowing unused funds to roll over indefinitely while eligible.
To qualify as having a disability, a student aged 3 to 21 must have an Individual Education Plan or conditions preventing adequate public education without special services, such as visual or auditory impairment, physical disability, intellectual or developmental disability, emotional disturbance, learning disability, autism, speech disability, or traumatic brain injury.
For priority group one or the higher $30,000 award, families need an IEP from a Texas public school district or charter school, a letter verifying Supplemental Security Income or Social Security Disability Insurance eligibility, or a licensed physician’s written diagnosis.
Participating parents must use funds only for approved expenses, permit schools to share assessment results with the organization, avoid selling purchased items, and notify the fund administrator within 30 days if the child enrolls in public school, graduates, or becomes ineligible.
Applications opened at 9 a.m. on Wednesday and close on March 17, with announcements expected in early April. The process takes 10-20 minutes online via computer, tablet, or phone.
“Funding decisions will be made after the close of the application window to allow for priority determinations and will not be made on a first-come, first-serve basis,” the Parent Application Checklist notes, adding that “all eligible children are not guaranteed funding; participation will be determined via a lottery process if eligible applicants exceed available program funding.”
Required documents include Social Security numbers for the parent and student, proof of Texas residency, such as a driver’s license or utility bill, a 2024 or 2025 Form 1040 tax return for income verification, disability documentation, if applicable, and details on preferred schools or providers.
The state’s comptroller’s office has provided a TEFA Parent Application Guide as well as a TEFA Parent Application Walkthrough video to assist families in completing the paperwork. Answers to questions about the program and the online application platform, ODYSSEY, are available here.
Applications may be submitted here.
