Texas is preparing to roll out its first statewide private school voucher system, a $1 billion program that will allow families to use public dollars for private school tuition, homeschooling costs, and other educational expenses starting in the 2026-27 school year.
The program, created by Senate Bill 2 and branded as Texas Education Freedom Accounts (TEFA), is structured as an education savings account (ESA) overseen by the state comptroller’s office and run day-to-day by a private contractor, Odyssey.
How the Texas voucher program works
Under SB 2, eligible families will receive money in a digital ESA that they can use to pay tuition at approved private schools or buy education-related services and products from approved vendors.
Most K-12 students using the program are expected to receive about $10,300 per year, equal to 85% of the estimated statewide average per-pupil funding.
Other amounts are set in law and in the comptroller’s final rules:
- Students with disabilities can receive up to $30,000 a year.
- Homeschooled students can receive $2,000 a year.
- Pre-K students at private programs can receive the full K-12 amount (around $10,000) if they also meet the state’s free public pre-K eligibility rules, a change from earlier draft rules that would have limited them to $2,000.
Funds will flow through education savings accounts managed by a “certified educational assistance organization,” or CEAO, the middleman selected by the comptroller to run the platform, pay invoices, and police whether spending is allowed under state rules.
The rules adopted by the comptroller establish a new subchapter in the Texas Administrative Code (Sections 16.401–16.410), outlining definitions, participation rules, approved providers, allowable expenses, suspension procedures, and appeals.
Timeline: When does TEFA start?
The voucher program will launch at the start of the 2026-27 school year.
Behind the scenes, the state and its chosen vendor, Odyssey, a New York-based company that already operates voucher platforms in several other states, is building the digital infrastructure.
Those already serving students with disabilities in an existing state initiative began applying to participate in December. Here are more key dates from the rules and contract:
- February-mid-March 2026: Families apply for vouchers for the 2026-27 school year.
- Early May 2026: Families receive decisions on their applications.
- Early July 2026: The tuition and payment platform is expected to go live.
- 2026-27 school year: Students can first use TEFA money for eligible expenses.
Who gets priority and who still may not get in
Although lawmakers branded the program “universal,” not all applicants will get an account if demand exceeds the $1 billion allocated for the first biennium. Instead, applications are sorted into tiers:
- Students with disabilities from families at or below 500% of the federal poverty level (around $160,000 for a family of four)
- Families at or below 200% of the poverty level (about $64,300 for a family of four)
- Families between 200% and 500% of the poverty level (~$64,300-$160,000)
- Families earning above 500% of poverty, capped at 20% of the program’s budget (roughly $156,000 – $160,000)
Access is not guaranteed. Unlike public schools, private schools can decide who to admit and how many voucher students to take.
They can also later dismiss a voucher student for reasons that would not be lawful grounds for exclusion or expulsion in a public school, such as academic performance, disability-related needs, behavior, or a family’s inability to pay tuition beyond the voucher amount.
Special education
The program sets aside larger amounts, up to $30,000, for students with disabilities.
Disability rights advocates sought an Individualized Education Program (IEP) for disability priority, but the voucher rules allow a Social Security determination letter or a physician’s note instead.
To access the higher special education amount, a comprehensive educational evaluation is required from public school districts within 45 days, even for students enrolled in private schools.
Advocates also warn that students with disabilities who move to private schools on a voucher may forfeit federal protections, such as those under the Individuals with Disabilities Education Act (IDEA).
What can families spend TEFA money on?
The rules list “approved education-related expenses” broadly, including:
- Private school tuition and required fees
- Instructional materials and digital curriculum
- Tutoring and teaching services
- Certain therapies and educational supports
At the same time, worries from other states loom large. In places like Arizona and Florida, investigations have documented spending on theme park tickets or large quantities of nonessential items. Texans who testified at the September hearing urged tighter guardrails. Ultimately, the comptroller adhered to the relatively limited oversight outlined in SB 2.
According to Raise Your Hand Texas, the $1 billion price tag for the 2026-27 biennium is also expected to increase, ballooning to a cost of nearly $8 billion by 2030-31.
