TEFA Eligibility: Who Qualifies for the Texas Education Freedom Account?

Before you apply, the most important question is: does your child qualify?

TEFA eligibility has two sides — requirements for students and requirements for schools. This guide covers both, including priority categories, special cases, and common questions about who's in and who's out.

Student Eligibility Requirements

To be eligible for a TEFA account, a student must meet all of the following:

1. Texas Residency

The student must be a resident of the state of Texas. The parent or legal guardian must provide proof of residency — a current utility bill, lease or mortgage document, Texas voter registration, or other documentation showing a Texas residential address.

Students living in Texas on a temporary basis (such as those with families on short-term work assignments) may need to provide additional documentation. The key requirement is that the family's primary residence is in Texas.

2. School-Age Eligibility

The student must be eligible to attend a Texas public school, which generally means:

Ages 5–18 (kindergarten through 12th grade)
Turning 5 on or before September 1 of the enrollment year for kindergarten entry
Students who have not yet graduated from high school

Pre-K Eligibility

Pre-K students are eligible for TEFA under specific conditions that mirror existing Texas free Pre-K law. A child qualifies for Pre-K TEFA if they meet any of the following:

Child is unable to speak or comprehend English
Household income is below 185% of the Federal Poverty Level (or family receives TANF or SNAP benefits)
Child is homeless
Parent is on active duty in the U.S. Armed Forces
A military parent was injured or killed on active duty
Child is in foster care
A qualifying first responder parent was injured or killed in the line of duty
Parent is a Texas public school classroom teacher

If your Pre-K child does not meet any of these criteria, they are not eligible until kindergarten.

Students who have already earned a high school diploma or GED are not eligible.

3. Not Currently Enrolled in a Texas Public School (for the Funded Year)

TEFA is designed for students who will attend a private school, use approved educational services, or be homeschooled during the year they receive funding. A student cannot simultaneously attend a Texas public school full-time and receive TEFA funds.

However, students who previously attended a Texas public school can apply. Your priority tier in the lottery is based primarily on household income and disability status (more on this below).

There Is No Income Requirement — But Income Determines Your Priority

There is no income limit or means test for TEFA eligibility. A family earning $40,000 per year and a family earning $400,000 per year are equally eligible to apply.

However, income is the primary factor in the lottery priority system. When applications exceed available funding, families with lower household income are prioritized first. Parents who do not submit income documentation (IRS Form 1040) may be placed in the lowest priority tier.

What this means practically: Submit your tax return with your application. Even though there's no income cap for eligibility, your household income determines which priority tier you're placed in — and that directly affects whether you receive funding.

| Household Size | 200% FPL | 500% FPL | |---|---|---| | 2 | $41,080 | $102,700 | | 3 | $51,640 | $129,100 | | 4 | $62,400 | $156,000 | | 5 | $73,160 | $182,900 | | 6 | $83,920 | $209,800 | | 7 | $94,680 | $236,700 | | 8 | $105,440 | $263,600 |

FPL = Federal Poverty Level. These figures are approximate and based on 2024 HHS poverty guidelines.

Priority Tiers

When applications exceed available funding, TEFA uses a randomized lottery with four priority tiers based primarily on household income and disability status. This is not first-come, first-served — submitting your application early does not give you an advantage over someone who submits on the last day.

Tier 1: Highest Priority

Students with a qualifying disability AND household income at or below 500% of the Federal Poverty Level (FPL)
Requires IEP, ARD, or equivalent documentation from a licensed evaluator

Tier 2

Household income at or below 200% FPL
All eligible students in these families, regardless of disability status or school background

Tier 3

Household income between 200% and 500% FPL

Tier 4: Lowest Priority

Household income at or above 500% FPL
Within Tier 4, students who attended a Texas public school in the previous year are prioritized over those who did not
Tier 4 is capped at 20% of total program funding — even if budget remains after funding higher tiers, no more than 20% of appropriated funds can go to Tier 4 applicants

How the Lottery Works

All Tier 1 applicants are funded first (if budget allows).
If funding remains, Tier 2 applicants are selected.
Then Tier 3, then Tier 4 (subject to the 20% cap).
If applicants within any single tier exceed available funding for that tier, a random lottery is conducted within that tier.
Non-selected applicants are placed on a waitlist.

Sibling Rule

If one child is selected in the lottery, all their eligible siblings who applied at the same time will be accepted with them — even if the siblings are in different priority tiers. This means families don't have to worry about some children getting in while others are left out.

With over 100,000 applications submitted and a budget supporting roughly 47,000–48,000 standard-tier students per year, your priority tier meaningfully affects your chances.

Who Does NOT Qualify

To be clear about the boundaries:

Students Who Are Not Eligible

Public school students who want to stay in public school — TEFA funds cannot be used for public school expenses. This includes charter schools, which are public schools in Texas.
Pre-K students who don't meet specific criteria — Pre-K eligibility requires meeting at least one qualifying condition (see Pre-K eligibility section above). Children under age 3 are not eligible.
Students who have already graduated — Those with a high school diploma or GED cannot use TEFA.
Non-Texas residents — The family must live in Texas. Students in neighboring states who want to attend a Texas private school are not eligible.
Students over 18 who are not in high school — The program is for K–12 students actively pursuing a high school diploma or equivalent.

Situations That Don't Disqualify

Some parents worry about situations that are actually fine:

Already attending private school — Students currently in private school can apply for TEFA. Their priority tier depends on household income, not school background.
Already homeschooling — Current homeschool families are eligible for the $2,000 tier.
Moved to Texas recently — New Texas residents are eligible once they establish residency.
Attended private school last year — Previous private school attendance doesn't disqualify anyone.
Family has high income — No income cap exists.
Student has been expelled or disciplined — A student's disciplinary history at a public school does not automatically disqualify them from TEFA, though the participating private school may have its own admissions criteria.

School and Provider Eligibility

TEFA isn't just about student eligibility — the school or service provider must also qualify.

Requirements for Participating Schools

A private school must meet the following to accept TEFA funds:

Registered with the Texas Comptroller's office as a TEFA-participating school
Located in Texas — Out-of-state schools are not eligible
Meets minimum academic and operational standards — The Comptroller's office sets requirements around curriculum, safety, staffing, and financial stability
Agrees to TEFA program terms — Including tuition transparency, non-discrimination requirements, and financial reporting
Cannot charge TEFA students more than non-TEFA students for the same grade and program

As of the current application period, more than 1,500 schools across Texas are registered as TEFA-participating institutions. This includes:

Religious schools (Catholic, Christian, Jewish, Islamic, and other faith-based schools)
Independent secular private schools
Montessori schools
Special education schools
College-preparatory academies

What About Homeschool?

Homeschool families don't enroll in a "school" under TEFA. Instead, they:

Apply for the $2,000 homeschool tier
Use funds for approved curriculum, materials, and services
Must comply with Texas homeschool requirements (which are separate from TEFA)

Texas homeschool law requires that instruction be bona fide (genuine), cover reading, spelling, grammar, mathematics, and good citizenship, and occur in a visual form (textbooks, workbooks, etc.). TEFA doesn't change or add to these requirements — it simply provides funding.

Requirements for Service Providers

Tutoring companies, therapists, educational services providers, and other non-school entities must:

Be registered with the Comptroller's office as approved TEFA providers
Be properly licensed for the services they offer (especially therapy and evaluation services)
Meet program standards for quality and pricing

Special Cases and Common Scenarios

Students with Disabilities

Students with documented disabilities are placed in Tier 1 (the highest priority) if household income is at or below 500% FPL, and have access to the higher funding tier (up to $30,000). To qualify:

The student must have an IEP (Individualized Education Program) from a Texas public school, or
The student must have an ARD (Admission, Review, and Dismissal) committee determination, or
The student must have equivalent documentation from a licensed evaluator

The disability documentation should be current. If your child was previously in public school special education but has transitioned out, check whether the existing documentation is still valid for TEFA purposes.

Private schools that accept special education TEFA students are not required to provide the same services that a public school IEP would mandate. The IEP is a public school document — private schools set their own support structures. However, the higher TEFA funding allows families to separately purchase therapeutic and support services from approved providers.

Military Families

Children of active-duty military personnel receive priority in the TEFA lottery. This includes families stationed at Texas military installations (Fort Cavazos, Fort Bliss, Joint Base San Antonio, etc.) as well as Texas-resident military families stationed elsewhere.

Required documentation: Active-duty military orders or military ID showing active-duty status.

Reserve and National Guard members who are not on active-duty orders may not qualify for military priority, though their children are still eligible for TEFA through the general pool.

Foster Children

Students in the Texas foster care system receive priority placement. Foster parents or caseworkers can apply on the child's behalf. Documentation requirements may differ — contact the Comptroller's helpline for guidance specific to foster care situations.

Students Who Move Mid-Year

If your family moves to Texas mid-year, you would need to apply during the next open application window. If you move out of Texas after receiving TEFA funds, eligibility may be affected — check with the Comptroller's office about residency maintenance requirements.

Siblings

Each sibling applies individually. However, if one child is selected in the lottery, all their eligible siblings who applied at the same time are automatically accepted — even if the siblings are in different priority tiers. Apply for all your children in the same application to take advantage of this rule.

Students Changing from Public to Private Mid-Year

TEFA funds are generally allocated for a full school year. The program is designed for families planning ahead, not mid-year transfers. If you're considering pulling your child from public school mid-year, apply during the open window and plan the transition for the beginning of the next school year.

How to Confirm Your Eligibility

Use this quick checklist:

Is the student a Texas resident? → Must be able to prove Texas residency
Is the student school-aged? → K–12 (ages 5–18), or Pre-K if meeting specific qualifying conditions
Will the student attend a private school, use approved services, or homeschool? → Cannot be enrolled full-time in a Texas public school while receiving TEFA
Is the chosen school or provider TEFA-approved? → Check the Comptroller's list or browse participating schools on this site

If you answered yes to all four, your child is eligible to apply. Whether you receive funding depends on the lottery if the program is oversubscribed.

Frequently Asked Eligibility Questions

Can my child attend a charter school with TEFA? No. Charter schools are public schools in Texas. TEFA funds are for private schools, homeschool, and approved educational services only.

Do I need to withdraw my child from public school before applying? No. You apply during the application window. If approved, you would then withdraw your child and enroll in a private school or begin homeschooling for the funded year.

Can my child use TEFA for part of the year and attend public school the rest? TEFA is designed for students who are not enrolled full-time in a public school during the funded year. Split enrollment scenarios are generally not supported.

Is TEFA available for students in all Texas counties? Yes. TEFA is a statewide program. However, the availability of participating schools varies by location. Rural areas may have fewer options than urban centers like Houston, Dallas–Fort Worth, San Antonio, and Austin.

Can undocumented students apply? TEFA requires that the student be eligible to attend a Texas public school. Texas public schools are required to educate all children regardless of immigration status under federal law (Plyler v. Doe). Consult with an immigration attorney about your specific situation.

Next Steps

Confirm eligibility using the checklist above.
Check the application timeline — the window closes March 17, 2026.
Read the How to Apply guide for the full step-by-step process.
Find participating schools in your area.

Browse TEFA-Eligible Schools — Find participating schools in your area →

Disclaimer: This guide is for informational purposes only and does not constitute legal or financial advice. Eligibility rules and priority categories are subject to change. Always verify details at educationfreedom.texas.gov for the most current information.