Texas Education Freedom Accounts (TEFA) represent one of the biggest changes to school choice in Texas. Created through Senate Bill 2, the program gives eligible families access to state-funded Education Savings Accounts (ESAs) that can be used for approved educational expenses outside the traditional public school system.
The program officially began with the 2026–2027 school year and is administered by the Texas Comptroller of Public Accounts. Texas lawmakers appropriated $1 billion for the program, creating an opportunity for families to choose private schools, homeschooling and other approved educational services.
With more than 274,000 applications submitted during the first application period, demand has been substantially higher than the funding available for the initial year. As a result, Texas has used a priority system, lottery process and waitlist to determine which eligible students receive accounts.
What Are Texas Education Freedom Accounts?
Texas Education Freedom Accounts are state-funded accounts designed to help eligible families pay for approved educational expenses.
Rather than sending the funding directly to a traditional public school, the TEFA model gives participating families greater control over how their child’s educational funds are used. Depending on the student’s circumstances and educational setting, funds can support private school tuition, tutoring, educational therapies, instructional materials, career and technical education and other approved expenses.
The program is administered by the Texas Comptroller of Public Accounts, while the Texas Education Agency has responsibilities related to certain special education documentation and coordination.
When Did the Texas Education Freedom Accounts Program Start?
The Texas Legislature established the program in 2025 through Senate Bill 2. The legislation became effective September 1, 2025, with the TEFA program beginning for the 2026–2027 school year.
The initial application window opened on February 4, 2026. The original expected deadline was March 17, but the application period was ultimately extended through March 31, 2026. More than 274,000 applications were submitted during that period.
Who Is Eligible for a Texas Education Freedom Account?
Eligibility is based on requirements established under Texas law.
Generally, a child must meet citizenship or lawful-presence requirements and be eligible to attend a Texas public school or open-enrollment charter school, subject to the program’s specific rules.
The program also establishes different priority levels. These priorities are particularly important because being eligible to apply does not necessarily guarantee an award when demand exceeds available funding.
The first priority tier focuses on students with qualifying disabilities in households with income at or below 500% of the federal poverty level. Other tiers are primarily based on household income and, for the lowest-priority group, previous public-school enrollment.
This structure means families with qualifying disabilities and lower household incomes generally receive priority over higher-income applicants.
How Much Money Does TEFA Provide?
The amount available through a Texas Education Freedom Account depends on the student’s circumstances and educational setting.
For the 2026–2027 school year, students attending participating private schools generally receive $10,474. Students with qualifying disabilities can receive substantially more when the required Individualized Education Program documentation supports additional funding. Certain students with disabilities may receive up to $30,000.
Students who choose the homeschool/other option receive $2,000 for the school year.
The funding structure therefore differs considerably depending on whether a student attends a participating private school, receives special education-related funding or uses the homeschool/other option.
TEFA Funding for Students With Disabilities
One of the most important parts of Texas Education Freedom Accounts is the additional funding available to qualifying students with disabilities.
A student attending a participating private school who does not have a qualifying current IEP on file may receive the standard private-school award of $10,474 for 2026–2027. A student with qualifying IEP documentation may receive additional funding, potentially reaching $30,000, depending on the applicable educational circumstances.
TEFA special education funding is connected to the amount that would have been associated with the student’s public-school educational needs. The state considers factors including where the student lives and the instructional code identified in the IEP.
Families should therefore ensure that disability documentation is accurate and submitted through the required process.
The Texas Education Agency has also provided guidance to school districts regarding IEP information for children who are applying for TEFA, including certain students previously enrolled in private schools or homeschooled.
What Can Texas Education Freedom Accounts Be Used For?
TEFA funds are intended for approved educational expenses rather than general household spending.
Depending on program rules and provider eligibility, families may use funds for expenses such as:
- Private school tuition
- Tutoring and teaching services
- Educational materials
- Educational therapies
- Career and technical education
- Certain educational products and services
- Other expenses approved under the TEFA program
The program maintains an approved marketplace and provider structure to help families determine which products and services qualify.
Families should verify an expense through the official TEFA rules and marketplace before assuming that a particular purchase qualifies.
Can TEFA Funds Be Used for Homeschooling?
Yes. Texas Education Freedom Accounts include a homeschool/other option.
For students selecting that option, the 2026–2027 funding amount is $2,000, distributed as a single installment.
This provides families who prefer homeschooling with access to some state educational funding while allowing them to select an educational approach outside the traditional public-school environment.
However, families should understand that the homeschool/other funding amount is different from the standard private-school award.
How Does the TEFA Lottery Work?
Demand for Texas Education Freedom Accounts exceeded the funding available for the first year.
More than 274,000 applications were received between February 4 and March 31, 2026. The Comptroller reported more than 25,000 ineligible applications, while eligible students were organized into statutory priority tiers.
When funding is insufficient to provide accounts to everyone in a particular priority group, the program uses a lottery to determine award order and establish the waitlist.
The process is therefore not simply first come, first served. Texas officials previously emphasized that applying early did not automatically guarantee an account.
How Many Students Are Receiving TEFA?
The program has experienced significant demand during its first year.
By August 28, 2026, the Comptroller reported more than 118,000 students with active TEFA awards, including more than 109,000 funded participants. The state has continued making awards from the waitlist as funding becomes available.
The state also reported in August that more than 100,000 students had received TEFA funding, demonstrating the scale of the program during its first year.
These figures can change as families opt out, confirm enrollment, resolve appeals and additional waitlisted students receive awards.
How Are TEFA Funds Distributed?
Private-school participants receive their funding in installments rather than receiving the entire annual award at once.
For the 2026–2027 school year, the first installment represents 25% of the student’s award. Another 25% is scheduled for October 1, with the remaining 50% scheduled for February 1, provided the applicable requirements continue to be satisfied.
Students choosing the homeschool/other option receive their $2,000 in a single installment.
This installment structure helps connect continued funding with participation in an approved educational setting.
What Parents Should Know Before Using TEFA
Families considering a Texas Education Freedom Account should carefully review the program requirements before making educational or financial decisions.
First, parents should verify that their child meets the eligibility requirements. Second, they should understand the student’s priority status and award amount. Third, they should investigate participating private schools and approved providers before selecting an educational option.
Families with children who have disabilities should pay particular attention to IEP documentation, because qualifying documentation can affect both priority and funding.
Parents should also remember that an application and an award are different things. The first-year program received significantly more applications than available funding, resulting in a waitlist and additional lottery-based awards.
What Makes Texas Education Freedom Accounts Important?
TEFA represents a major expansion of educational choice in Texas.
For families who believe their children need an alternative to their assigned public school, the program can provide financial assistance toward a different educational environment. Private schools, homeschooling and specialized educational services can offer different approaches to curriculum, instruction and student support.
The program also creates opportunities for families to consider educational services that may not have been accessible within their previous budget.
At the same time, the high level of demand during the first year shows that access to the program is competitive. More than 274,000 applications were received, while the program has continued working through awards and its waitlist.
Texas Education Freedom Accounts: What to Expect Next
The first year of TEFA provides an important foundation for the future of school choice in Texas.
As more families use their accounts, the state will have additional information about participation, funding, providers and educational choices. The Legislature will also have information from the program’s first-year experience when considering future funding and policy decisions.
For families, the most important step is to follow official TEFA announcements, maintain accurate documentation and monitor application or award status through the state’s official program resources.
The Texas Education Freedom Accounts program has already become a significant part of the state’s education landscape. With substantial demand, a large number of participating students and continued awards from the waitlist, TEFA is giving many Texas families a new way to approach their children’s education during the 2026–2027 school year.
For the most current eligibility rules, funding information, participating providers and application updates, families should rely on the official Texas Education Freedom Accounts program information rather than outdated third-party guides.