TEFA FAQ: Common Questions Answered

The Texas Education Freedom Account (TEFA) is new, and parents have questions. This FAQ addresses the most common ones — organized by topic, written in plain English.

For deeper coverage on any topic, see the linked guides throughout.

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General Questions

1. What is TEFA?

TEFA stands for Texas Education Freedom Account. It's an Education Savings Account (ESA) program created by Senate Bill 2 (SB 2), passed by the 89th Texas Legislature and signed into law on May 3, 2025.

In short: the state deposits public education funds (roughly $10,474 per student) into an account that families can use to pay for private school tuition, tutoring, educational therapy, textbooks, and other approved expenses.

For the full overview, read: What Is TEFA?

2. Is TEFA the same thing as a school voucher?

Technically, TEFA is an Education Savings Account (ESA), not a traditional voucher. The difference:

• A voucher sends money directly from the state to a school.
• An ESA deposits money into a family-controlled account with approved spending categories.

In everyday conversation, people use "voucher" and "ESA" interchangeably. The practical difference is that an ESA gives families more flexibility — funds can be split across tuition, tutoring, therapy, and materials rather than going to a single school.

3. Who runs the TEFA program?

TEFA is administered by the Texas Comptroller's office. The technology platform that handles applications, accounts, and payments is built by Odyssey, a company that manages similar ESA programs in other states.

The Texas Education Agency (TEA) is not the agency managing TEFA — this is a common misconception.

4. When was TEFA created?

Senate Bill 2 was passed by the 89th Texas Legislature and signed into law on May 3, 2025. The first application window opened on February 4, 2026.

5. How long will TEFA last?

TEFA is Texas law — it doesn't expire after one year. However, the $1 billion biennial budget must be renewed by the Legislature each session. Future legislatures could increase the budget, reduce it, or modify program rules. For now, the program is established and funded.

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Application Questions

6. How do I apply for TEFA?

Apply online at educationfreedom.texas.gov. This is the only official application portal. The process takes most families 10–20 minutes.

Step-by-step instructions: How to Apply for TEFA

7. What is the application deadline?

The first application window closes March 17, 2026 at 11:59 PM Central Time. Late applications are not accepted for this cycle.

Don't wait until the last day — the portal may experience heavy traffic near the deadline.

8. Does it cost money to apply?

No. The TEFA application is completely free. If anyone asks for money to "help you apply" or to "guarantee approval," it is a scam. Report it to the Comptroller's office.

9. Can I apply for more than one child?

Yes. You can add multiple children to a single parent/guardian application. Each child is evaluated independently and receives their own funding based on their category (standard, special education, or homeschool).

10. What documents do I need to apply?

• Parent/guardian government-issued ID (Texas DL or state ID)
• Parent's Social Security Number (SSN) or ITIN
• IRS Form 1040 for tax year 2024 or 2025 (for income verification and priority tier placement)
• Child's birth certificate
• Proof of Texas residency (utility bill, lease, etc. — must be current)
• Child's Social Security number
• Previous school information (if the child attended Texas public school)
• IEP/ARD documentation (if applying for the special education tier)
• Military documentation (if claiming active-duty priority)

Full document checklist: How to Apply for TEFA

11. Do I have to pick a school before applying?

No. You can indicate that you're still deciding which school your child will attend. However, you do need to specify whether you plan to use TEFA for private school, homeschool, or educational services.

If approved, you can finalize or change your school selection later, as long as the school is a registered TEFA participant.

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Eligibility Questions

12. Who is eligible for TEFA?

Any Texas student who is:

• A Texas resident
• School-aged (K–12, generally ages 5–18)
• Planning to attend a private school, homeschool, or use approved educational services (not enrolled full-time in a Texas public school during the funded year)

There is no income requirement. TEFA is available to all eligible families regardless of how much they earn.

Full eligibility details: TEFA Eligibility Guide

13. Is there an income limit?

No income limit for eligibility — all Texas families can apply regardless of income. However, household income is the primary factor in priority tier placement for the lottery. Lower-income families are placed in higher priority tiers. Submit your IRS Form 1040 with your application to ensure proper placement.

14. Can my child use TEFA if they currently attend private school?

Yes. Students already enrolled in private school are eligible. Their priority tier in the lottery depends on household income and disability status, not their current school type. See the Eligibility guide for the full tier breakdown.

15. Can my child use TEFA at a religious school?

Yes. TEFA-participating schools include Catholic schools, Christian schools, Jewish schools, Islamic schools, and other faith-based institutions. SB 2 does not restrict TEFA use to secular schools.

More than half of participating schools are faith-based institutions.

16. Can my child use TEFA at a charter school?

No. In Texas, charter schools are public schools. TEFA funds can only be used at private schools, for homeschool expenses, or for approved educational services.

17. What if my child has special needs?

Students with documented disabilities (IEP or ARD documentation) receive:

• Priority status in the lottery
• Up to $30,000 per year in TEFA funding (compared to ~$10,474 for standard students)

The private school is not required to implement your child's public school IEP. However, the higher funding amount allows families to separately purchase therapeutic and support services from approved providers.

18. What if my family is military?

Children of active-duty military personnel receive priority status in the TEFA lottery. You'll need to provide active-duty military orders or a military ID during the application.

18a. Can Pre-K students use TEFA?

Yes, but only under specific conditions. Pre-K eligibility mirrors existing Texas free Pre-K law. A Pre-K child qualifies if they meet any of these criteria: unable to speak or comprehend English, household income below 185% FPL (or receiving TANF/SNAP), child is homeless, parent is active-duty military, military parent was injured or killed on duty, child is in foster care, qualifying first responder parent was injured or killed, or parent is a Texas public school classroom teacher.

If your Pre-K child doesn't meet any of these criteria, they'll need to wait until kindergarten.

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Money Questions

19. How much money does TEFA provide?

| Category | Annual Amount | |---|---| | Standard students | ~$10,474 | | Special education | Up to $30,000 | | Homeschool | $2,000 |

Full breakdown: TEFA Funding Amounts

20. How do I receive the money?

TEFA funds are not sent as a check or cash. The money is deposited into a TEFA account managed through the Odyssey platform. All purchases must be made through the Odyssey marketplace — payments go directly to participating schools and approved providers. You will not be reimbursed for purchases made outside the marketplace.

21. What can I spend TEFA funds on?

Approved expenses include:

• Private school tuition and fees
• Textbooks and instructional materials
• Tutoring from approved providers
• Educational therapy (speech, occupational, behavioral, etc.)
• Curriculum and materials for homeschool
• Standardized testing fees

Funds cannot be used for non-educational expenses, college tuition, unapproved providers, or expenses outside Texas.

Full spending guide: TEFA Funding Amounts

22. What if tuition costs more than the TEFA amount?

TEFA covers up to the funded amount. If tuition exceeds $10,474, the family pays the difference out of pocket. Some schools also offer scholarships or financial aid that can be combined with TEFA.

23. What if tuition costs less than the TEFA amount?

The remaining balance stays in the TEFA account and can be used for other approved expenses (tutoring, textbooks, therapy, etc.). Leftover funds cannot be withdrawn as cash.

24. Are TEFA funds taxable?

TEFA funds are state-provided education benefits and are not expected to be treated as taxable income. However, tax rules can change, and individual circumstances vary. Consult a tax professional for advice specific to your situation.

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Lottery and Selection Questions

25. Will everyone who applies get TEFA?

Not necessarily. TEFA has a $1 billion biennial budget cap. With over 100,000 applications submitted and a budget supporting roughly 47,000–48,000 standard-tier students per year, the program is likely oversubscribed.

When demand exceeds supply, a randomized lottery determines who receives funding. This is not first-come, first-served — submitting early does not give you an advantage.

26. How does the lottery work?

TEFA uses four priority tiers based primarily on household income and disability status:

1. Tier 1 (highest): Students with qualifying disabilities + household income ≤ 500% FPL
2. Tier 2: Household income ≤ 200% FPL
3. Tier 3: Household income 200–500% FPL
4. Tier 4 (lowest): Household income ≥ 500% FPL — capped at 20% of program funding

All Tier 1 applicants are funded first, then Tier 2, and so on. If applicants within any tier exceed that tier's available funding, a random lottery is conducted within the tier.

Sibling rule: If one child is selected, all eligible siblings who applied at the same time are automatically accepted — even if they're in different tiers.

27. What happens if I'm not selected in the lottery?

You'll be placed on a waitlist. If other families decline their awards or additional funding becomes available (new rounds on October 1, 2026 and April 1, 2027), waitlisted families are drawn in order. You can also apply again in future application windows.

Not being selected does not affect your eligibility for future rounds.

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School Questions

28. How many schools participate in TEFA?

As of the first application window, more than 1,500 private schools across Texas are registered as TEFA-participating institutions.

29. How do I find TEFA-participating schools?

You can browse participating schools on this site by city and region, or check the official list maintained by the Comptroller's office at educationfreedom.texas.gov.

30. Can a school reject my child even if I have TEFA?

Yes. TEFA provides funding — it does not guarantee admission. Private schools set their own admissions criteria and can accept or decline students based on those criteria. Having TEFA approval means you have funding available; it doesn't override a school's enrollment decisions.

31. Can a school charge TEFA students more than other students?

No. Participating schools agree not to charge TEFA students higher tuition or fees than what they charge non-TEFA students for the same grade and program.

32. Can I switch schools after I've been approved?

Yes. You can change your school selection through the TEFA portal after approval, as long as the new school is also a registered TEFA participant. The approval is tied to the student, not to a specific school.

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Homeschool Questions

33. Can homeschool families use TEFA?

Yes. Homeschool families can receive $2,000 per student per year for approved curriculum, materials, educational software, and services.

34. What homeschool expenses are covered?

• Curriculum packages and textbooks
• Online learning subscriptions and educational software
• Educational supplies and materials
• Standardized testing fees
• Approved tutoring or educational services

35. Does TEFA add new requirements for homeschooling?

No. TEFA doesn't change existing Texas homeschool law. Families must still meet the standard Texas homeschool requirements (bona fide instruction in reading, spelling, grammar, mathematics, and good citizenship using a visual form). TEFA provides funding — it doesn't add regulations.

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Timing and Process Questions

36. When will I find out if I'm approved?

After the application window closes on March 17, 2026, the Comptroller's office reviews applications and conducts the lottery if needed. Notification timelines vary — check your email and the TEFA portal regularly. The goal is to have approvals finalized before the 2026–2027 school year begins.

37. When do funds become available?

Approved TEFA funds are deposited for the 2026–2027 school year. The exact timeline for when accounts are loaded depends on the review and lottery process.

38. Can I apply after the March 17 deadline?

No. The first application window has a firm March 17, 2026 deadline. Applications submitted after 11:59 PM CT on that date will not be accepted. Future application windows may open later — check educationfreedom.texas.gov for announcements.

39. Is TEFA a one-time thing, or can I reapply each year?

TEFA is designed as an ongoing program, not a one-time benefit. Families who receive funding are expected to be able to apply for renewal each year. New application windows will open for additional families as well.

Specific renewal procedures may differ from the initial application — check the portal for details as they become available.

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Practical Concerns

40. What if there are no TEFA schools near me?

TEFA participation varies by region. Urban areas like Houston, Dallas–Fort Worth, San Antonio, and Austin have the most options. Rural areas may have fewer participating schools.

Options for families in underserved areas:

• Check if any schools within driving distance participate
• Consider the homeschool tier ($2,000) for curriculum and materials
• Use TEFA funds for approved online educational programs and tutoring services
• Watch for new schools joining the program — the participant list grows over time

41. What about transportation?

In some cases, transportation costs to and from an eligible school or service provider may qualify for TEFA reimbursement. Check the Comptroller's approved expense list for current rules and limitations on transportation.

TEFA does not provide a school bus or transportation service — families are responsible for getting their children to school.

42. What if I have a complaint about a TEFA school?

The Texas Comptroller's office oversees participating schools. If you have concerns about a school's compliance with TEFA program requirements, you can file a complaint through the TEFA portal or contact the Comptroller's office directly.

For issues unrelated to TEFA (safety, licensing, etc.), contact the appropriate state or local agency.

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Quick Reference

| Detail | Answer | |---|---| | What is TEFA? | Texas Education Freedom Account — ESA for private education | | How much? | ~$10,474 standard · $30,000 special ed · $2,000 homeschool | | Who's eligible? | Texas K–12 students not in public school full-time | | Income limit? | None | | Where to apply? | educationfreedom.texas.gov | | Deadline | March 17, 2026 | | How many schools? | 1,500+ participating | | Application cost? | Free | | Who runs it? | Texas Comptroller's Office via Odyssey | | What's the budget? | $1 billion biennial cap |

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

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