An analysis estimates that 733 Texas school districts could collectively lose nearly $300 million as students move to private schools. Credit: Getty Images

Written by Mira Rowan

As more state funding flows into private education, new data have raised questions about how these dollars impact public schools that serve primarily Black students.

An analysis by the Texas Center for Voucher Transparency and Every Texan reports that 733 Texas school districts could lose nearly $300 million in state funding this school year. Through the state’s new voucher program, students are leaving for private schools or homeschooling. Since state dollars are tied to student enrollment, the students who leave public schools take those dollars with them.

“Texas families, taxpayers, and lawmakers need to know that vouchers have a public school price tag–and what choices may be lost to public school families as a result,” said Dee Carney, Director of the Texas Center for Voucher Transparency at Our Schools Our Democracy.

What the numbers reveal about Black students

According to data released by the Texas Comptroller’s Office, Black students represent approximately 14% of early voucher participants, compared with 13% of Texas public school enrollment.

Meanwhile, white students accounted for 41% of voucher participants, compared with 24% of public school students, and Hispanic students represented 28% of participants, despite making up 53% of public school enrollment.

Houston’s Black communities face additional questions

In Houston ISD, Black students made up 21% of the student population in the 2024-25 school year.

Among them, 1,207 students were awarded school vouchers, the largest reported among Texas school districts.

But overall, across the Houston-Galveston region, roughly 8,100 former public school students accepted vouchers, potentially costing districts as much as $68 million.

In turn, the lost revenue could affect school districts’ finances, which fund buildings and staff salaries.

For schools serving predominantly Black students and underserved neighborhoods, the reductions can impact programs that students rely on.

“Voucher supporters promised that vouchers would expand educational options for Texas families without harming Texas public schools,” Carney said. “But the total estimated loss of $294 million in funding will mean real harm if districts must respond by cutting teachers, ending programs, reducing student services, limiting extracurricular opportunities, or even closing more schools.”

School choice versus financial stability

The voucher program, officially known as the Texas Education Freedom Accounts program, provides $10,474 to the majority of participating private school students, up to $30,000 for eligible students with disabilities, and $2,000 for homeschooling expenses.

“Texas families, taxpayers, and lawmakers need to know that vouchers have a public school price tag–and what choices may be lost to public school families as a result.”

Dee Carney, Director of the Texas Center for Voucher Transparency at Our Schools Our Democracy

TXCVT and Every Texan estimate that 549 additional districts (along with the 184 school districts) with fewer than 30 funded voucher participants will face an additional $67 million in losses, bringing the total estimated cost to approximately $294 million.

For Black families in Houston and Texas, access to alternative educational opportunities comes with a price tag for neighborhood public schools.

Some experts have asked for accountability from elected officials.

“The families of 5.4 million Texas students need lawmakers to keep their schools open and thriving, but state leaders instead are pushing costly vouchers,“ said Luis Figueroa, Senior Director for Legislative and Government Affairs for Every Texan. “The next legislative session should focus on increasing the basic allotment, the foundation of Texas public school finance, as well as policy solutions such as enrollment-based funding. These serve the many, not just the few.”