TEFA

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Starting in the 2026-27 school year, Texas Education Freedom Accounts, having up to $1 billion in funding, will help families cover educational expenses for students in Pre-K through 12th grade.

The Texas Comptroller's office has announced that the new Education Savings Account (ESA) program established by the Texas Legislature earlier this year will now be named Texas Education Freedom Accounts.

October 2025: The Comptroller also announced the selection of Odyssey as the certified educational assistance organization that will assist the Comptroller in administering the program.

FAQs for Parents about Texas Education Freedom Accounts

What are Texas Education Freedom Accounts?

Texas Education Freedom Accounts provide state funds that families can use for expenses such as private school tuition, homeschool curriculum, tutoring, therapies, transportation, technology, and more.

Who is eligible to apply for Texas Education Freedom Accounts?

All Texas students are eligible to apply. However, funds are limited and will be awarded based on a lottery system, with priority given to students with disabilities and those from low-income households.

How much support will Texas Education Freedom Accounts provide?

  • Private school students may receive $10,474 per year
  • Students with disabilities could get up to $30,000 annually

When can Families Apply for Texas Education Freedom Accounts?

  • Applications open February 4, 2026, and funds will be available for the 2026-27 school year.
  • The Comptroller also announced the selection of Odyssey as the certified educational assistance organization that will assist the Comptroller in administering the program.
  • Odyssey will build and manage a new online parent portal to guide families through the application process, allow them to search for eligible schools and service providers, and access their accounts to pay for eligible education expenses.

Texas Education Freedom Accounts Eligibility Guidelines:

There are four categories of prioritization for applicants:

  1. Students with a disability (defined by Texas Educ. Code Sec. 29.003) whose family income is at or below 500% of the Federal Poverty Guidelines (FPG) - see chart below.
  2. Children whose family income is at or below 200% of the FPG.
  3. Children whose family income is between 201% and 500% of FPG.
  4. Everyone else, depending upon available funds. Students who move from public schools will be prioritized over currently enrolled private school students in this category only.

How is the money made available to families?

  • Quarterly transfers into Texas Education Freedom Accounts will be made on the first day of July, October, January, and April.
  • If a child enrolls in the program after the beginning of the school year, the amount transferred is prorated based on the date of enrollment.
  • Any money remaining in a participating child's account will be carried over to the next fiscal year.
  • Transfers to an account are not considered taxable income unless otherwise provided by federal or another state's law.

What is required of parents whose children have been given Texas Education Freedom Accounts?

Parents must agree to:

  • Spend program money only for eligible expenses
  • Share the child's assessment results with Odyssey
  • Not sell an item purchased with program money and
  • Notify Odyssey within 30 days of the child enrolling in public school, graduating from high school, or otherwise becoming ineligible to enroll in public school

What can Texas Education Freedom Accounts be used for?

Approved educational expenses like:

  • Tuition and fees
  • Curriculum and learning materials
  • Private tutors and therapists
  • Transportation and meals
  • Technology (limited to 10% of funds)

The Adjusted Gross Income is the amount considered for income levels.

Alternative documents or data will be required for families who have not filed federal tax returns.

Household Number Federal Poverty Guidelines (FPG) yearly income 200% of FPG yearly income 500% of FPG yearly income
1 $15,650 $31,300 $78,250
2 $21,150 $42,300 $105,750
3 $26,650 $53,300 $133,250
4 $32,150 $64,300 $160,750
5 $37,650 $75,300 $188,250
6 $43,150 $86,300 $215,750

For more information, go to https://educationfreedom.texas.gov/