What is School Choice?

The state has budgeted $1 billion, serving approximately 90,000 students. The amount available to each student is based on their circumstances:

• Participants choosing a private school receive 85% of the estimated statewide average amount of state and local funding per student for the most recent school year, which will be $10,474.00 for the 2026-27 school year.
• According to the child's individualized education program (IEP), a child with a disability may receive up to $30,000, based on the amount the child’s school district would receive if the child were enrolled in public school.
• Home-schooled participants receive $2,000.

• Students must be U.S. citizens, nationals, or lawful residents eligible to attend a Texas public or open charter school.
• Students who have applied and been accepted to a private school for the 2026-27 academic year are eligible to receive TEFA funds.
• Students who attend a public school or charter school for the 2026-27 academic year are NOT eligible to receive TEFA funds.
  • Students enrolled in a private school who receive TEFA funds and then transfer to a public or open charter school are no longer eligible for TEFA funds and must relinquish any unused funds. 
  • Withdrawing from a private school to attend a public school may or may not address any school-specific contract for the balance of tuition or fees owed to the private school they attended for the remainder of the academic year, and TEFA funds may NOT be used to pay that balance.

• If a child is approved, so are the siblings who applied.

• If applications exceed the limited number of available ESAs, ESAs will be allocated by lottery in all four categories:

  • Priority group 1 – Public or private school children with disabilities whose family income is equal to or less than 500% of Federal Poverty Guidelines (FPG)

  • Priority group 2 – Public or private school children whose family income is equal to or less than 200% of poverty guidelines

  • Priority group 3 – Public or private school children whose family income is between 200% and 500% of poverty guidelines

  • Priority group 4 – All other eligible children

    • Group 4 prioritizes students switching from a public school to a private school

    • Funding for group 4 is capped at 20% of the total annual appropriation

• If a student is approved, so are the student’s sibling(s) who applied.

• Parents do not need to reapply each year once a child is approved and receives an ESA. The student’s account will remain active if the student continues to meet the program’s requirements. Unused funds may roll over year to year with no rollover limit while the student participates in the program. Students in good standing stay in the program automatically. Each year, families must confirm they want to continue participating and provide the required information to the CEAO. 

• Use the link at the bottom of this page to apply for each child.

• The Texas Comptroller of Public Accounts will oversee the program to ensure funds are used properly. 

• Odyssey was selected as the certified educational assistance organization (CEAO) that will help with the administration of the TEFA accounts under the Comptroller’s oversight. The state will fund the accounts, and parents will utilize their Odyssey portal to manage the account for their student.

• Quarterly transfers into ESA accounts will be made on the first day of July, October, January, and April.

• If a child enrolls in the program after the beginning of the school year, the amount transferred is prorated based on the date of enrollment.

• Any money remaining in a participating child’s account will be carried over to the next fiscal year while the student is a K-12 student.

• Funds will not follow a student to college or post-secondary school. Funds may not be allocated to other ESA siblings.

• Transfers to an account are not considered taxable income unless otherwise provided by federal or another state’s law.

• Tuition and fees for a private school, higher ed provider, online educational course or program, or a program that provides an industry-based credential approved by TEA

• The cost of breakfast or lunch offered during the school day by a private school 

• Purchase of instructional materials or uniforms

• Unbundled fees for classes or educational services from traditional public or charter schools

• Costs related to tests and academic assessments

• Cost dual enrollment tuition and fees

• Fees for a private tutor or teaching service

• Fees for transportation provided by a fee-for-service transportation provider

• Fees for educational therapies or services not covered by government benefits or private insurance

• Costs of computer hardware and software and other technological devices required by a provider or prescribed by a physician (not to exceed in any year 10% of the total amount in the child’s ESA for the year)

Money may not be used to pay any person related to a program participant within the third degree of consanguinity (family relationship). For approved vendor requirements, see the section below titled "Who is an approved provider or vendor?"

• Quarterly transfers into ESA accounts will be made on the first day of July, October, January, and April.

• If a child enrolls in the program after the beginning of the school year, the amount transferred is prorated based on the date of enrollment.

• Any money remaining in a participating child’s account will be carried over to the next fiscal year.

• Transfers to an account are not considered taxable income unless otherwise provided by federal or another state’s law.

• Spend program money only for eligible expenses.

• Share the child's assessment results with CEAO or authorize the school to share on their behalf. 

• Do not sell an item purchased with program money and

• Notify the EAO within 30 days of the child enrolling in public school, graduating high school, or otherwise becoming ineligible to enroll in public school.

• The parent of a child not enrolled in public school may request that the school district evaluate the child to determine eligibility for special education services and participation in the ESA program as a child with a disability. If the child is eligible, the school district must develop an Individualized Education Program (IEP) for the child.

• A physician's evaluation and diagnosis may speed up the timeline for the evaluation request for an IEP.

• The certified education assistance organization (CEAO) must inform parents that a private school is not subject to federal and state laws regarding providing educational services to a child with a disability in the same manner as a public school.

• The CEAO must provide information regarding the rights to which a child with a disability is entitled if the child attends a public school.

1. A provider of supplemental special education services previously approved by TEA.
2. A private school:

• Accredited by TEPSAC or TEA, and
• Annually administers a nationally norm-referenced assessment in grades 3-12 and 
• Has continuously operated a campus for at least two years before the school seeks approval to participate in the program.

3. A school district or charter school accredited by TEA can provide services or products to participating children in a manner that the children are not counted toward average daily attendance.
4. A private tutor, therapist, or teaching service employee who:

• Is an educator employed by or a retired educator formerly employed by a school accredited by TEA, or an organization recognized by TEA, TEPSAC, or 
• Holds a relevant license or accreditation by a state, regional, or national certification or accreditation organization, or 
• Is employed in or retired from teaching or tutoring capacity at a higher education provider and 
• Has provided a national criminal history record information review to the comptroller and is not on the Do Not Hire registry.

5. A higher education provider that demonstrates nationally recognized postsecondary education accreditation.

• A public school must provide records to the parent of a child seeking to participate in the ESA program or to a private school at the parent’s request.

• A school district, TEA, or charter school must provide information to the CEAO to verify a child’s eligibility to participate in the ESA program.

• The CEAO may not retain information beyond the period necessary to determine eligibility.

• The CEAO must comply with confidentiality laws and may not sell or distribute information without a participant’s consent.