Texas latest to launch ESA program

Education Savings Accounts (ESAs) are state-led initiatives that offer families dedicated funds to cover a range of education expenses. These programs cover private school tuition, tutoring services, textbooks, student transportation, and disability accommodations, supporting various aspects of a student’s learning journey. For Texas families pursuing alternatives such as private education or homeschooling, ESAs can make it easier to manage the costs of attendance, supplies, and curriculum materials.

Following other states, Texas launched its own ESA program in early February, generating widespread interest. With applications nearing their closing dates, Texan families are encouraged to evaluate whether an ESA is the best fit for their educational needs and goals.

ESAs now available to Texas families for education costs

During the 89th legislative session, Texas enacted the Texas Education Freedom Act (TEFA), introducing a universal program that allocated $1 billion to education initiatives (making it the largest program of its kind nationwide). Families interested in participating in TEFA initiatives have until Tuesday, March 17, 2026, to apply for 2026-27 school-year funding. Unlike first-come, first-served programs, applications will be evaluated based on demonstrated need.

The Texas Education Freedom Act has generated substantial interest across the state: over 130,000 applications were submitted in just the first three weeks of enrollment. The initial $1 billion in funding for the Texas Education Freedom Act could be increased in the future, depending on the volume and profile of applicants who ultimately use the TEFA program.

State officials estimate that TEFA will support approximately 100,000 families in its inaugural year, with average awards of $10,000 per student. For students with special needs, the TEFA allows for awards of up to $30,000. Families seeking these higher amounts must submit a disability certification form signed by a licensed professional, and may also need to provide documentation of individualized education plans (IEPs).

Eligibility requirements and relevant information

The program features broad eligibility criteria: there are no income or family-size restrictions for participation. However, at least during the first year, priority is given to low-income families and students receiving special education services. Top priority goes to children with disabilities from households earning at or below 500% of the Federal Poverty Level. In the second year of the program, the number of siblings in a household will also be considered in the selection process.

A unique benefit of the initiative is that if a child is awarded an account during an application period, any eligible siblings who apply within that same period are automatically accepted into the program. TEFA participants who remain in good standing will not need to reapply each year, as long as they continue to reside in Texas. All applicants must be U.S. citizens, with proof of status and Texas residency required as part of the application process.

Final award amounts are determined by a family’s local school district and reflect 85% of the district's average per-student funding. At present, there are 1,500 accredited private schools and 200 education vendors and service providers eligible for funding under the program. This list is expected to grow, as there is no application deadline for new institutions seeking inclusion.

Homeschooling families and those choosing non-accredited private schools may receive $2,000. For pre-K students, eligibility is more limited and mirrors the process used for determining access to free preschool education.

The anticipated disbursement timeline for TEFA awards is as follows:

• Families will receive notification of their award in early April
• A quarter of funding will be distributed by July 1
• Half of the total amount will be awarded by October
• The remaining funds will be disbursed by April 2027

The Texas Education Freedom Act was inspired by similar education savings account programs in Arizona and Florida, with Arizona being the pioneering state to establish such a program. Families interested in staying informed about TEFA updates can sign up for email alerts via official channels.

Additional questions

How can I apply for an ESA in Texas?

Families must visit the Texas Education Freedom Account (TEFA) website and fill out the online application, available in both English and Spanish:

• Submit your application before the window closes on March 17
• Even if your child attends a private school or is homeschooled, you must prepare proof that the child is eligible to attend:
  • A public school
  • Open-enrollment charter school
  • Public or open-enrollment charter school’s pre-K or kindergarten program
• Detail any information about family size, income, and special education or disability accommodations
• Prepare a signed document from a disability specialist, if applicable
• Prepare proof of an IEP, if applicable
• Prepare any additional proof of learning differences, if applicable
• Prepare proof of citizenship, if applicable

The online application is designed to quickly verify submitted documents, enabling a faster process for families.

Can TEFA funds only be used for private schools?

No, there are a number of qualifying expenses that families can use ESAs for, including:

• Tuition and fees at a higher education provider, online educational courses or programs, or programs that provide training for an industry-based credential, as approved by the Texas Education Agency (TEA)
• Support and services for students with disabilities and learning differences
• Textbooks or other instructional materials
• Required school uniforms
• Fees for additional classes provided by school districts, even if the student is not included in the school’s standard daily attendance
• Curricular materials for home-based learning

The program's flexibility allows families to choose the educational path that best fits their preferences and students’ learning needs.

How much money will be awarded through TEFAs?

A participating child in the Texas school vouchers program who attends an approved private school or a pre-K or kindergarten program will receive 85% of the estimated statewide average per-student state and local funding. This is calculated based on the TEA's average daily attendance figures for the most recent school year. For the 2026-27 school year, the TEA has established this amount as $10,474.

Children with disabilities enrolled in an approved private school or a qualifying pre-K or kindergarten program may be eligible to receive up to $30,000 in support of their educational needs.

Students participating in Texas school vouchers who are homeschooled or not enrolled in a public school or pre-K/kindergarten program may qualify for $2,000 per year in funding.

All other students applying for Texas school vouchers will have awards determined based on financial need and established priority criteria.

Closing thoughts

Texas just joined the growing list of states launching Education Savings Account (ESA) programs, encouraging educational flexibility for families with elementary and secondary students. The Texas Education Freedom Act (TEFA) gives priority enrollment to lower-income students and those with disabilities, but its inclusive structure allows nearly any family to apply and access state funding. A broad range of students throughout the state can now access a greater range of educational options, providing families with flexible and affordable options for a variety of education pathways and needs.