Short answer
Texas Education Freedom Accounts, created by Senate Bill 2 in 2025, put state money into education savings accounts that families can spend on private school tuition and other approved education costs [1][2]. The Legislature set aside $1 billion, private-school accounts are worth $10,474 per student, and the program began with the 2026-27 school year [1].
The 2025 law
The program, called Texas Education Freedom Accounts (TEFA), was created by Senate Bill 2, passed by the 89th Texas Legislature in 2025 [1]. The governor signed the bill on May 3, 2025, and it took effect Sept. 1, 2025 [2]. The Texas Comptroller of Public Accounts oversees the program, and a contracted organization, Odyssey, helps administer the accounts [1].
Money goes into a state-managed education savings account rather than directly to a school. Families can use it for tuition at an accredited private school or for approved education expenses such as textbooks, transportation or therapy [2]. Participating private schools must be in Texas, be accredited, have operated for at least two school years, and give participating students in grades 3 to 12 a nationally norm-referenced test each year [1]. Participating students are not required to take the state's STAAR exam [2].
How much money is involved
The Legislature provided $1 billion for the program [1]. Under the law, the state can spend no more than $1 billion during the two-year budget period from Sept. 1, 2025, to Aug. 31, 2027 [2]. State budget experts cited by The Texas Tribune projected that costs could reach roughly $4.8 billion by 2030, with future funding to be set by later legislative sessions [2].
For the 2026-27 school year, the Comptroller lists $10,474 for a private-school student, which is 85% of the statewide average state and local funding per student [1]. Students with disabilities who have an individualized education program (IEP) on file can receive up to $30,000 [1]. Homeschooled students can receive $2,000 a year [1]. The Texas Tribune reported in August 2026 that the average award was $7,500 to $8,000 [3].
Who is eligible
A child must be a U.S. citizen or lawfully present, must be eligible to attend a Texas public school, open-enrollment charter or pre-K program, and must have a parent who is a Texas resident [1]. Students cannot be enrolled in the program and a public school at the same time, and students already in private school can apply [2].
When applications exceed funding, a lottery decides placement within priority tiers [1]. For the first year, the order was children with disabilities in households at or below 500% of the federal poverty level, then households at or below 200%, then households between 200% and 500%, then households at or above 500% [1]. Spending on that last tier is capped at 20% of program funds, and within it, children who were enrolled in a Texas public or charter school for at least 90% of the prior year come first [1].
Launch and first-year demand
Families could apply from Feb. 4 to March 31, 2026, for the 2026-27 school year [1]. The program received more than 274,000 applications [1]. The Comptroller reported in May 2026 that more than 42,600 Tier 1 applicants had been awarded and that more than 53,000 Tier 2 applicants were awarded by random lottery [4].
For private-school students, the Comptroller schedules 25% of funds on July 1, 2026, 25% on Oct. 1, 2026, and the remaining 50% on Feb. 1, 2027; homeschool students receive 100% on July 1 [1]. By Aug. 13, 2026, participation had reached 101,600 students, and more than 100,000 students remained on the waitlist, according to The Texas Tribune [3]. Students with disabilities made up roughly 24% of participants [3].
Common questions
- Is the Texas voucher program the same as an education savings account?
- Yes. Texas Education Freedom Accounts are education savings accounts funded by the state and administered under the Comptroller [1][2].
- How much is a Texas Education Freedom Account worth?
- For 2026-27, $10,474 for a private-school student, up to $30,000 for a student with a disability, and $2,000 for a homeschooled student, according to the Comptroller [1].
- When did the program start?
- Applications ran from Feb. 4 to March 31, 2026, and the first account funds were scheduled for July 1, 2026, for the 2026-27 school year [1].
- Can families with high incomes get an account?
- Yes, but households at or above 500% of the federal poverty level are the last priority tier, and that tier is capped at 20% of program funds [1][2].
Sources
- Texas Education Freedom Accounts (program home and FAQ), Texas Comptroller of Public Accounts, 2026
- Private school vouchers are now law in Texas. Here's how they will work., The Texas Tribune, 2025-05-03
- Which families are using ESAs? Here's what we know about Texas' first school vouchers, The Texas Tribune, 2026-08-13
- Additional students awarded Texas Education Freedom Accounts, Texas Comptroller of Public Accounts, 2026-05-04