What Is TEFA? The Texas Education Freedom Account Explained

Texas families now have a new way to pay for private education. The Texas Education Freedom Account (TEFA) program gives eligible students access to public funds — roughly $10,474 per year — that can be spent on private school tuition, tutoring, textbooks, and other approved educational expenses.

If you've heard people talk about "Texas school vouchers" or "education savings accounts," they're talking about TEFA.

Here's everything parents need to know.

The Basics: What TEFA Actually Is

TEFA is 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. It's the first program of its kind in Texas history.

In plain terms, here's how it works:

You apply through the state's official portal at educationfreedom.texas.gov.
If approved, the state deposits funds into an account managed on your behalf.
You use those funds to pay for approved educational expenses — private school tuition, textbooks, tutoring, therapy services, and more.
You don't pay the money back. It's not a loan. It's public funding redirected from the state education budget to your child's education.

Think of it like a dedicated education debit card. The state loads it, and you spend it at approved schools and service providers.

How Much Money Are We Talking About?

TEFA offers three funding tiers depending on your child's situation:

| Category | Annual Amount | |---|---| | Standard students | ~$10,474 | | Students with disabilities | Up to $30,000 | | Homeschool students | $2,000 |

The standard amount (~$10,474) is tied to the state's per-student funding formula, so it may adjust slightly from year to year. The special education amount can reach $30,000 because it factors in additional support services these students need.

Homeschool families receive a smaller amount ($2,000) that covers curriculum materials, educational supplies, and approved services.

For a detailed breakdown of what these funds cover, see the TEFA Funding Amounts guide.

Why Does TEFA Exist?

For decades, Texas parents who wanted to send their children to private school had to pay entirely out of pocket — even though the state allocated thousands of dollars per student for public education. If your child left the public system, that money stayed with the district, not the family.

TEFA changes that equation. The idea behind SB 2 is straightforward: the funding follows the student, not the institution. If a family decides that a private school, a specialized tutoring program, or a homeschool curriculum better serves their child, a portion of public education funding goes with them.

Supporters argue this gives families — especially lower-income families — real educational choice. Critics raise concerns about accountability and public school funding impacts. Regardless of where someone stands on the debate, TEFA is now Texas law, and the first application window is open.

Who Can Use TEFA?

TEFA is open to Texas students who meet specific criteria. The short version:

The student must be a Texas resident and eligible to attend a Texas public school.
The student must be school-aged (generally ages 5–18, kindergarten through 12th grade).
There are priority tiers — students are placed into four tiers based primarily on household income and disability status. Lower-income families and students with qualifying disabilities receive the highest priority in the lottery.

For the complete eligibility breakdown, see the TEFA Eligibility guide.

How the Application Works

The first TEFA application window opened on February 4, 2026 and closes March 17, 2026. Applications are submitted online at educationfreedom.texas.gov, through a platform built by Odyssey.

Here's the process at a high level:

Create an account on the TEFA portal.
Enter your child's information — name, date of birth, grade level, and residency documentation.
Select a participating school or service provider (or indicate homeschool).
Submit and wait. If applications exceed available funding, a lottery determines who gets in.

The program has a $1 billion biennial budget cap. In the first application window, over 100,000 applications have been submitted, and more than 1,500 schools are participating. If demand exceeds the cap, a randomized lottery selects recipients, with four priority tiers based on household income and disability status.

For a full step-by-step walkthrough, see the How to Apply guide.

What Can You Spend TEFA Funds On?

TEFA funds can be used for a range of approved educational expenses, including:

Private school tuition and fees
Textbooks and instructional materials
Tutoring services from approved providers
Educational therapy (speech, occupational, etc.)
Curriculum and materials for homeschool students
Standardized testing fees
Transportation to and from an eligible school (in some cases)

Funds cannot be used for:

Non-educational expenses
Schools or providers not approved by the Texas Comptroller
College or university tuition
Religious activities that are separate from academic instruction

The Texas Comptroller's office maintains the list of approved expenses and providers. All transactions go through the Odyssey platform, which tracks spending and ensures compliance.

Who Runs TEFA?

TEFA is administered by the Texas Comptroller's office, not the Texas Education Agency (TEA). This is an important distinction — the Comptroller handles the money, the application process, and compliance.

The technology platform that manages applications, accounts, and payments is built by Odyssey, a company that operates similar ESA programs in other states.

Schools that want to accept TEFA funds must register with the Comptroller's office and meet program requirements, including financial and academic standards.

How Is TEFA Different from a Traditional Voucher?

The terms "voucher" and "ESA" get used interchangeably in everyday conversation, but there's a technical difference:

A voucher is typically a fixed payment sent directly from the state to a specific school.
An ESA (Education Savings Account) deposits funds into an account that the family controls, with approved spending categories.

TEFA is technically an ESA, which means families have more flexibility. Instead of the money going straight to one school, it sits in an account where it can be distributed across multiple approved expenses — tuition at one school, tutoring from another provider, textbooks from a third source.

In practice, most families use the bulk of their TEFA funds for tuition at a single school. But the ESA structure gives additional flexibility that a simple voucher wouldn't.

What Does TEFA Mean for Texas Families?

TEFA represents the largest shift in Texas education funding in decades. Here's what it changes in practical terms:

For families already in private school: If your child is enrolled in a participating private school, TEFA can offset or eliminate tuition costs. A family paying $9,000/year in tuition could have that entire expense covered. Your lottery priority depends on household income and disability status, not your current school type.

For families considering leaving public school: If you've been thinking about private school but couldn't afford it, TEFA removes or reduces the financial barrier. At ~$10,474 per student, hundreds of Texas private schools become tuition-free or nearly so. Lower-income families receive the highest priority in the lottery.

For homeschool families: The $2,000 annual benefit is modest but meaningful. Quality curriculum packages, online courses, and educational software add up. For families already spending out of pocket on homeschool materials, this is a direct cost offset.

For families of students with disabilities: The $30,000 tier is transformative. Specialized private schools, one-on-one therapies, and assistive technology that were previously out of reach financially are now funded through the state. This tier reflects the reality that educating students with significant disabilities costs more.

For rural families: TEFA's impact depends on geography. Urban areas have dozens or hundreds of participating schools. Rural areas may have few or none nearby. The homeschool tier and approved online educational services provide options, but the full benefit of TEFA is strongest where school choices already exist.

Key Numbers at a Glance

| Detail | Value | |---|---| | Law | Senate Bill 2 (SB 2), 89th Texas Legislature | | Signed into law | May 3, 2025 | | Application window | February 4 – March 17, 2026 | | Standard funding | ~$10,474 per student per year | | Special education funding | Up to $30,000 per student per year | | Homeschool funding | $2,000 per student per year | | Biennial budget cap | $1 billion | | Applications submitted | 100,000+ | | Participating schools | 1,500+ | | Administered by | Texas Comptroller's Office | | Technology platform | Odyssey | | Apply at | educationfreedom.texas.gov |

What Should You Do Right Now?

If you're a Texas parent considering TEFA, here's your quick-start checklist:

Check eligibility. Read the Eligibility guide to confirm your child qualifies.
Understand the money. Review the Funding Amounts guide to know what you'll receive and what it covers.
Apply before March 17, 2026. The application window is open now at educationfreedom.texas.gov. Don't wait — if demand exceeds the budget, a lottery decides who gets in.
Find a participating school. Over 1,500 schools across Texas are accepting TEFA funds.
Read the FAQ. The TEFA FAQ answers the most common parent questions.

Still Have Questions?

The TEFA FAQ covers 20+ common questions from Texas parents. For the full application walkthrough, read How to Apply for TEFA.

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. TEFA rules and amounts are subject to change. Always verify details at educationfreedom.texas.gov for the most current information.