TEFA Funding Amounts: How Much Money Do You Get?

One of the first questions every parent asks about TEFA: how much money will my child actually receive?

The answer depends on your child's category. Here's the complete breakdown — the dollar amounts, what's covered, what's not, and how the money reaches you.

The Three Funding Tiers

TEFA provides different amounts depending on the student's situation:

1. Standard Students — ~$10,474 per Year

This is the baseline amount for most students. It's calculated from the state's per-pupil funding formula — the same amount Texas would allocate for that student in a public school.

The exact figure may shift slightly year to year as the state formula adjusts, but for the 2026–2027 school year, the amount is approximately $10,474 per student.

This amount covers the majority of — and in many cases all of — tuition at many Texas private schools. According to Private School Review, the average annual private school tuition in Texas ranges from roughly $8,000 to $12,000, though elite and specialized schools can cost significantly more.

2. Students with Disabilities — Up to $30,000 per Year

Students with documented disabilities — those with an Individualized Education Program (IEP) or Admission, Review, and Dismissal (ARD) documentation — can receive up to $30,000 per year.

This higher amount recognizes that students with disabilities often need:

Specialized instruction and smaller class sizes
Therapeutic services (speech therapy, occupational therapy, behavioral therapy)
Assistive technology and adaptive equipment
One-on-one aides or support staff
Modified curriculum materials

The actual amount within the $30,000 cap may vary based on the student's documented needs and the services required. This is the most generous tier in the TEFA program.

To qualify for this tier, families must provide IEP or ARD documentation from a Texas public school, or equivalent documentation from a licensed evaluator.

3. Homeschool Students — $2,000 per Year

Families who choose to homeschool their children can receive $2,000 per student per year through TEFA.

While this is the smallest tier, it's significant for homeschool families who previously received zero public support. The $2,000 can go toward:

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

Funding Summary Table

| Student Category | Annual Amount | Notes | |---|---|---| | Standard | ~$10,474 | Tied to state per-pupil formula; may adjust annually | | Special Education | Up to $30,000 | Requires IEP/ARD documentation | | Homeschool | $2,000 | Curriculum, materials, and approved services |

What TEFA Funds Can Be Spent On

TEFA is not a blank check. Funds must be used for approved educational expenses as defined by the Texas Comptroller's office. Here's what qualifies:

Tuition and School Fees

Private school tuition at a TEFA-participating institution
Registration and enrollment fees
Required lab or technology fees
Required uniform costs (at some schools)

This is where most families will spend the bulk of their TEFA funds. If tuition at your chosen school is less than the TEFA amount, the remaining balance stays in the account for other approved expenses.

Textbooks and Instructional Materials

Required textbooks (print or digital)
Workbooks and supplementary instructional materials
Required software or apps for coursework

Tutoring and Academic Services

Tutoring from an approved provider
Academic coaching and test prep services
Educational enrichment programs

Tutoring providers must be registered with the TEFA program. Not every tutoring company qualifies — check the approved provider list through the Comptroller's office.

Therapeutic and Support Services

Speech-language therapy
Occupational therapy
Physical therapy
Behavioral therapy
Psychological or educational evaluations

This category is especially relevant for families receiving the special education tier. These services must be provided by licensed professionals or approved service providers.

Curriculum and Homeschool Materials

Comprehensive curriculum packages
Individual subject curricula
Educational software and online courses
Science kits, art supplies, and other hands-on educational materials

For homeschool families, this is the primary spending category.

Testing and Assessment

Standardized testing fees (SAT, ACT, PSAT, etc.)
Norm-referenced testing required by some private schools
Educational assessments and evaluations

Transportation (Limited)

In some cases, transportation costs to and from an eligible school or service provider may qualify

Check the Comptroller's approved expense list for current transportation rules, as this category has specific limitations.

What TEFA Funds Cannot Be Spent On

Understanding what's not covered is just as important:

Non-educational expenses — Meals, entertainment, field trips that are primarily recreational
College or university tuition — TEFA is for K–12 education only
Schools not registered with TEFA — The school must be an approved participating institution
Providers not approved by the Comptroller — Tutors, therapists, and service providers must be registered
Savings or investment — Funds cannot be rolled into a 529 plan or other savings vehicle
Non-educational technology — A laptop for schoolwork may qualify; a gaming console does not
Expenses outside Texas — TEFA funds must be used for education within the state of Texas

If you're unsure whether a specific expense qualifies, check with the Comptroller's office or consult the approved expense categories on the Odyssey platform.

How the Money Gets to You

TEFA funds don't arrive as a check in the mail. Here's the actual flow:

1. Application and Approval

You apply through educationfreedom.texas.gov. If approved (either directly or through the lottery), you're assigned a TEFA account.

2. Account Setup on Odyssey

The Odyssey platform manages TEFA accounts and transactions. Once approved, you'll set up your account on Odyssey, which functions as the financial management system for the program.

3. Funds Are Deposited

The Texas Comptroller's office deposits the approved amount into your TEFA account on the Odyssey platform. You'll see your balance and can track all transactions.

4. All Purchases Go Through the Odyssey Marketplace

All TEFA purchases must be made through the Odyssey program marketplace. This is a critical rule that many families overlook:

Tuition payments to participating schools are processed directly through the Odyssey platform.
Textbooks, curriculum, tutoring, therapy, and other services must be purchased from approved vendors within the marketplace.
You will NOT be reimbursed for purchases made outside the marketplace. If you buy textbooks at a store or pay a tutor directly, you cannot submit those receipts for reimbursement.
No school, service provider, or vendor may rebate, refund, credit, or share any program money with you.

This is a firm program rule confirmed in the parent attestation you sign during application. Plan your purchases through the Odyssey marketplace from the start.

5. Tracking and Compliance

Every transaction is tracked on the Odyssey platform. The Comptroller's office can audit TEFA accounts to ensure funds are being used for approved expenses.

The $1 Billion Budget Cap

TEFA is funded by a $1 billion biennial (two-year) budget — roughly $500 million per year. This means there's a ceiling on how many students can participate.

Here's what that means in practice:

At ~$10,474 per standard student, the annual budget supports approximately 47,000–48,000 standard-tier students (before accounting for the higher special education and lower homeschool tiers).
With over 100,000 applications submitted in the first window, demand significantly exceeds supply.
When applications exceed available funding, a randomized lottery determines who receives awards, with priority categories drawn first.

If the program proves popular and politically sustainable, the Texas Legislature may increase the budget cap in future sessions. But for now, $1 billion over two years is the limit.

What If Tuition Costs More Than the TEFA Amount?

Many private schools charge more than the ~$10,474 standard TEFA amount. In that case:

TEFA covers a portion of tuition, and the family pays the difference out of pocket.
Some schools offer scholarships or financial aid that can stack with TEFA, reducing the remaining balance further.
The school cannot charge TEFA students more than it charges non-TEFA students for the same grade and program.

For families choosing schools with tuition near or below the TEFA amount, the program may cover the full cost. Several hundred TEFA-participating schools in Texas have tuition at or under $10,474.

What If Tuition Costs Less Than the TEFA Amount?

If tuition at your chosen school is less than your TEFA funding:

The remaining balance stays in your TEFA account
It can be used for other approved expenses (textbooks, tutoring, therapy, etc.) — all purchases must go through the Odyssey marketplace
Participants in good standing do not need to reapply each year
It cannot be withdrawn as cash

This flexibility is one advantage of the ESA structure. Families can use leftover funds to supplement their child's education with tutoring, enrichment programs, or therapeutic services.

Multiple Children in One Family

Each child applies individually, and each receives their own funding amount based on their category. There is no family cap.

Example:

Child 1 (standard): ~$10,474
Child 2 (special education): up to $30,000
Child 3 (homeschool): $2,000

Total family TEFA funding: up to ~$42,474 per year

Each child's funds are tracked separately and must be spent on that child's education.

Do TEFA Funds Affect Your Taxes?

TEFA funds are state-provided education benefits, not income. They are not expected to be treated as taxable income at the state or federal level, similar to how public school funding is not taxed.

However, tax rules can change, and individual situations vary. Consult a tax professional about how TEFA funds interact with your specific tax situation, especially if you also claim education-related tax deductions or credits.

Key Takeaways

Standard students get ~$10,474/year — enough to cover tuition at many Texas private schools.
Special education students can get up to $30,000/year — reflecting the higher cost of specialized services.
Homeschool students get $2,000/year — for curriculum, materials, and approved services.
All purchases must go through the Odyssey marketplace — no out-of-pocket reimbursements.
All spending must be on approved educational expenses — tracked and auditable.
The $1 billion cap means not everyone will get funded — apply early, and understand the lottery process.

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. Funding amounts, approved expenses, and program rules are subject to change. Always verify details at educationfreedom.texas.gov for the most current information.