Texas is poised to launch a transformative $1 billion education initiative with the introduction of Education Freedom Accounts. The Texas Education Freedom Accounts (TEFA) program begins in the 2026-27 school year, marking a significant shift in the state’s educational landscape by opening public funds to private education. This is a top development in Texas news and a significant school choice program.
Understanding Education Freedom Accounts in Texas
The TEFA program establishes education savings accounts, providing public funds for families to use for private education expenses. These Education Freedom Accounts can cover private school tuition and homeschooling expenses, along with other approved educational needs. The program aims to give parents more choices, empowering them to select the best learning environment for their children, a trending topic across the nation regarding Education Freedom Accounts.
Program Structure and Funding Details for Education Freedom Accounts
The Texas Legislature approved Senate Bill 2, which created the TEFA program with $1 billion in funding for the 2026-27 biennium. The program is structured as an Education Savings Account (ESA), and the Texas Comptroller’s office oversees these Education Freedom Accounts. A private contractor, Odyssey, manages the daily operations, with funds flowing through Certified Educational Assistance Organizations (CEAO) that manage payments and compliance for the Education Freedom Accounts.
Funding Amounts for Students with Education Freedom Accounts
The funding amount for Education Freedom Accounts varies per student. Most students can receive around $10,000 to $10,900 annually, representing about 85% of public school per-pupil funding. Students with disabilities receive higher amounts, accessing up to $30,000 per year based on their Individualized Education Program (IEP). Homeschooled students receive $2,000 annually through their Education Freedom Accounts, and pre-K students may also qualify for full funding, depending on specific rules.
Key Players and Oversight of Education Freedom Accounts
The Texas Comptroller’s office is the main overseer of the Education Freedom Accounts program. Acting Comptroller Kelly Hancock announced key details. Odyssey, a New York-based company with experience in similar programs, manages the platform for Education Freedom Accounts, running the application portal and digital wallet for parents. Certified Educational Assistance Organizations (CEAO) will also help administer the program, ensuring funds from the Education Freedom Accounts are used correctly.
Program Timeline and Application Process for Education Freedom Accounts
Senate Bill 2 became law in May 2025, with final rules for Education Freedom Accounts released in November 2025. Private schools and vendors can register starting December 9, 2025. Families can apply for Education Freedom Accounts on February 4, 2026, with the application window closing on March 17, 2026. Families can expect decisions by early May 2026, and funds will become accessible starting July 1, 2026, for the official launch of the Education Freedom Accounts program for the 2026-27 school year.
Eligibility and Prioritization for Education Freedom Accounts
Nearly all K-12 students in Texas can apply for Education Freedom Accounts, provided they are U.S. citizens or legal residents eligible to attend a Texas public school. Priority goes to students with disabilities and low-income families. Siblings of qualifying students are also prioritized. If demand exceeds funding for these Texas education initiative funds, a lottery system may be used, with students with disabilities from lower-income households receiving preference in lotteries for Education Freedom Accounts.
How Education Freedom Account Funds Can Be Used
Education Freedom Accounts funds can cover various educational expenses, including private school tuition and fees, school meals, and uniforms. Tutoring, online programs, and therapies for students with disabilities are also eligible. Textbooks, instructional materials, transportation to educational providers, and computer hardware and software are also covered by these education savings accounts through the Education Freedom Accounts.
Background and Legislative Journey of Education Freedom Accounts
The TEFA program, a key component of Governor Greg Abbott’s education agenda and a significant development for private school funding, passed the Texas Legislature in 2025. The bill, SB 2, creating these Education Freedom Accounts, faced years of debate. Previous voucher proposals failed to pass the House, but Abbott’s campaign support for pro-voucher candidates helped secure votes for SB 2, marking a major step for school choice in Texas. This new Texas education initiative offers exciting possibilities through Education Freedom Accounts.
Implications and Criticisms of Education Freedom Accounts
Critics raise concerns about the impact of Education Freedom Accounts. Opponents worry about funding diversion from public schools, with estimates suggesting millions could be lost, straining districts. Accountability is another concern, with audits of Odyssey’s past work showing issues. Private schools, which may receive funding through Education Freedom Accounts, are not bound by the same accountability standards as public schools. Equity concerns persist, as wealthier families might benefit more from Education Freedom Accounts, and special education students might lose federal protections. The long-term cost of these education savings accounts through Education Freedom Accounts is also debated.
Looking Ahead for Education Freedom Accounts
The Texas Education Freedom Accounts program represents a new chapter, promising greater educational options for families. However, it also introduces complex challenges regarding accountability for public funds. The program’s success will depend on robust oversight of these Education Freedom Accounts. Texas is now a major player in the national school choice movement, and this news regarding Education Freedom Accounts will continue to develop.
