Texas Attorney General Ken Paxton said January 24, 2026, that the Texas Comptroller has authority under Texas law to prevent taxpayer funds from going to private schools or education vendors found to be illegally tied to terrorist organizations, foreign adversaries, or transnational criminal networks.
The statement followed a formal legal opinion issued by Paxton’s office at the request of Acting Comptroller Kelly Hancock, who asked for clarification on how eligibility rules should be applied under the Texas Education Freedom Accounts (TEFA) program.
The opinion does not make findings about any specific school or vendor.
What the Opinion Says — In Plain Terms
Under Texas law, private schools and education vendors can participate in the TEFA program only if they continue to meet program requirements and follow “other relevant law.”
Paxton’s office said that phrase includes existing laws that already apply in Texas, such as:
- Laws banning material support for foreign terrorist organizations
- Laws restricting certain foreign or transnational criminal organizations from operating or holding property in the state
If a school or vendor violates those laws, it would not be eligible to receive taxpayer funds through the program.
Comptroller Decides the Facts
The attorney general’s office made clear that it does not decide whether any specific school or vendor is in violation of the law.
Instead, the Texas Legislature assigned that responsibility exclusively to the Comptroller’s Office. That means the Comptroller is responsible for reviewing information, conducting audits, and determining whether a school or vendor qualifies to receive funds.
Paxton’s office said its role is limited to explaining how the law works — not applying it to individual cases.
Oversight and Enforcement Tools
According to the opinion, the Comptroller has broad authority to:
- Require schools and vendors to provide information about eligibility
- Conduct audits through third parties
- Suspend or remove participants that fail to comply with the law
- Recover funds if money is distributed improperly
The opinion states that the education savings program is not meant to be used to subsidize unlawful activity.
Paxton: Taxpayer Money Should Not Fund America’s Enemies
In a public statement, Paxton said the opinion confirms the Comptroller already has the power needed to act.
“Let me be crystal clear: Texans’ tax dollars should never fund Islamic terrorists or America’s enemies,” Paxton said. He added that his office would defend lawful actions taken by the Comptroller if they are challenged in court.
Comes Amid Broader School Oversight Questions
The opinion comes as Texas officials and school districts continue to review school facilities, vendor relationships, and compliance with state law in various contexts. Paxton’s opinion does not name any specific school, district, or organization and does not make findings about any individual case.
In the past week, The Dallas Express reported on school districts reviewing or halting the use of school property for certain third-party events, raising broader questions about compliance with Texas law and eligibility standards for taxpayer-funded education programs.
All determinations about eligibility under the program are left to the Comptroller’s Office.
