The 30-Second Version
Texas passed a $1 billion education savings account program called Texas Education Freedom Accounts (TEFA). It launches for the 2026-27 school year.
If your child goes to a participating private school, they could receive $10,474 per year.
If your child is homeschooled, they could receive $2,000 per year.
If your child has an IEP for special education services, they could receive up to $30,000 per year.
Applications are open now through March 17, 2026. It's not first-come, first-served, so you can apply any time before the deadline without affecting your chances. But you need to get it done.
A lot of people are saying "Texas is giving homeschool families $10,000." That's not exactly right. The $10,474 goes to families who enroll in approved private schools. Homeschool families get up to $2,000. Still worth applying for, but know the real numbers before you plan your budget.
What Is TEFA (and Why Should You Care)?
In 2025, the Texas Legislature passed Senate Bill 2 and put $1 billion behind a new program: the Texas Education Freedom Accounts. It's the biggest day-one school choice program in the country.
The idea is simple. Instead of funding school systems, TEFA sends money directly to families. You choose how your child learns, and the state helps pay for it.
The Texas Comptroller of Public Accounts runs the program. A company called Odyssey was selected as the certified educational assistance organization (CEAO) to help administer it. Think of Odyssey as the middleman between you and the money.
This matters to you because it's real money, arriving in real accounts, that you can spend on your child's education starting this fall.
How Much Money You Actually Get
TEFA Funding by Category
The private school amount ($10,474) is set at 85% of the statewide average of state and local funding per student in Texas public schools. The Texas Education Agency calculated that number for the 2026-27 year.
For homeschool families, the $2,000 cap is written into the law. It applies per child, per year. If you have three homeschooled kids, that's $6,000 you can put toward curriculum, materials, tutoring, and other approved expenses.
The $30,000 for students with disabilities requires an Individualized Education Program (IEP) on file with the Texas Education Agency. The exact amount depends on what the child's local school district would receive to provide services under that IEP.
2 homeschooled kids: $4,000/year in approved educational expenses.
3 homeschooled kids: $6,000/year.
1 homeschooled + 1 in private school: $12,474/year.
That's real money for curriculum, tutoring, and tools you're probably already buying out of pocket.
Who's Eligible
Almost every PreK through 12th grade student in Texas qualifies. Your child needs to meet these criteria:
U.S. citizen or lawfully present in the United States.
Eligible to attend a Texas public school district or open-enrollment charter school or pre-K program. This includes children of active-duty military members stationed in Texas.
Not currently enrolled full-time in a public school. A participating student can't be counted toward a school district's average daily attendance.
That last point is the key one. If your child is currently in public school and you want TEFA funding, they'd need to withdraw from public school before using the funds. If you're already homeschooling or your child attends private school, you're good to go.
Public schools (district or charter) can choose to offer individual classes that TEFA families can take using these funds. But they have to offer them in an unbundled way that doesn't count the student as full-time. So your homeschooled kid could potentially take one or two public school classes using TEFA funds while staying a homeschooler.
How to Apply (Step by Step)
The application is open right now. Here's the process:
Step 1: Go to educationfreedom.texas.gov, the official TEFA website from the Texas Comptroller's office.
Step 2: Download the Parent Prep Checklist from the site. This tells you exactly what documents and information you need before starting the application. Having everything ready makes the process much faster.
Step 3: Complete the online application. You'll enter basic information about your child, your family, and your intended educational setting (homeschool, private school, etc.).
Step 4: Submit before March 17, 2026 at 11:59 PM Central Time.
Step 5: Wait for notification. If demand exceeds available spots, a lottery decides placement using the priority system described below.
Applying on February 5 gives you no advantage over applying on March 16. The timing of your application within the window does not affect your chances. Just make sure you submit before the deadline.
If your child has a disability: There's an extra step. Your child's school district needs to upload their IEP into the APEX-ESA system. If your child was enrolled in public school within the past three years and had an IEP, contact your former school district now to make sure they handle the upload before March 17.
What You Can (and Can't) Spend It On
TEFA funds go into a state-managed account. You spend through an online marketplace where approved vendors and service providers are listed. The money goes directly from the state to the provider. You don't get a check.
What's Covered
| Expense Category | Examples |
|---|---|
| Private school tuition | Tuition at approved private schools |
| Curriculum & instructional materials | Textbooks, workbooks, online curriculum subscriptions |
| Tutoring | Academic tutoring from approved providers |
| Therapies | Speech therapy, occupational therapy, other educational therapies |
| Assessments & testing | Standardized tests, educational evaluations |
| Technology | Certain approved educational technology |
| Transportation | Transportation costs related to educational services |
| Dual credit courses | College courses taken for high school and college credit |
What's Not Covered
You can't use the funds for anything not on the approved list. You can't use it for household expenses, entertainment, or general childcare. Every purchase goes through the marketplace, and the Comptroller's office oversees spending to make sure funds are used properly.
You cannot use homeschool TEFA funds for tuition or services from unapproved providers. Only vendors and service providers registered in Texas and approved by the program can participate. Before you plan your budget around TEFA, check the marketplace to see if the curriculum or services you want are actually available through the platform.
The Lottery: What Happens If Too Many People Apply
There's $1 billion in the pot. That could fund somewhere between 60,000 and 90,000 accounts depending on the mix of award amounts. If more people apply than there's funding for, a lottery decides who gets in.
The priority system works like this for the first year:
Priority 1: Children with a disability (IEP on file) from households at or below 500% of the Federal Poverty Level.
Priority 2: Children from households at or below 200% of the Federal Poverty Level.
Priority 3: Children from households between 200% and 500% of the Federal Poverty Level.
Priority 4: Everyone else (households above 500% FPL).
There's also a cap on how many children from households making above 500% of the poverty line can participate. For context, 500% FPL for a family of four is roughly $155,000 in 2026.
Bottom line: lower-income families and families with special-needs children get priority. But the program is designed to serve a broad range of families, and there's a real chance the funding covers most applicants in year one.
The Testing Requirement (Read This Carefully)
This is the part that makes some homeschool parents nervous.
If you participate in TEFA, your child must take a nationally norm-referenced achievement test or recognized aptitude assessment. For private school students in 3rd through 12th grade, this is an annual requirement. Test results go to Odyssey, the certified educational assistance organization.
Here's the good news: the Texas Home School Coalition has confirmed that your existing homeschool freedoms stay the same. There is no testing requirement for homeschool families who don't participate in TEFA. Participation is completely optional.
The test results remain confidential. They're shared with the CEAO (Odyssey) that helped you through the application process, but they're not public and not shared with school districts.
You're trading some privacy (test scores shared with Odyssey) for $2,000 per child per year. For many families, that's an easy yes. For families who chose homeschooling specifically to avoid government involvement in their child's education, it's a real decision to think through. Neither choice is wrong.
Key Dates and Timeline
Should You Apply? The Honest Pros and Cons
Reasons to Apply
$2,000 is $2,000. Most homeschool families spend between $700 and $1,800 per child per year on materials. TEFA could cover most or all of that.
It's per child, per year. Multiple kids multiply the value fast.
It's free money you're already paying for. This comes from state education funds. If you're a Texas taxpayer, you're already funding public education. TEFA lets some of that follow your child.
Application is straightforward. It's an online form, not a 40-page packet.
Reasons to Think Twice
The testing requirement. If avoiding standardized testing was part of why you chose homeschooling, TEFA adds it back in.
Marketplace limitations. You can only buy from approved vendors through the platform. If your favorite curriculum provider isn't registered, those funds won't help you buy it.
Government involvement. Some homeschool families prefer zero interaction with state education systems. TEFA creates a reporting relationship that didn't exist before.
The program could change. This is year one. Rules, funding levels, and requirements could shift in future legislative sessions.
If you're comfortable with standardized testing (many of us already test our kids voluntarily) and the marketplace has curriculum and services you'd buy anyway, it's hard to say no to $2,000 per kid per year. Apply, see if you get in, and decide then. Applying doesn't commit you to anything.
Frequently Asked Questions
Can I apply for TEFA and keep homeschooling exactly the way I do now?
Mostly, yes. Your daily homeschool life doesn't change. The main addition is the annual standardized test requirement and spending through the approved marketplace instead of wherever you normally shop.
What if I apply and don't get selected?
Nothing changes. You continue homeschooling as normal. There's no penalty or downside to applying and not being selected.
Can I use TEFA funds for AI learning tools like Khan Academy or online tutoring platforms?
If the provider is registered as an approved vendor in the TEFA marketplace, yes. Check the marketplace once it's fully populated to see which specific platforms and tools are available.
Do I have to withdraw my child from public school to apply?
Your child can't be enrolled full-time in public school while using TEFA funds. If you're already homeschooling, this isn't an issue. If your child is currently in public school, they'd need to withdraw before using the funds.
Can my child take individual public school classes while using TEFA?
Potentially, yes. Public schools can offer unbundled classes to TEFA students as long as the student isn't counted as full-time. This is still being worked out at the district level.
Is TEFA income-based? Do I make too much to qualify?
Eligibility is universal. Any Texas PreK-12 student can apply. Income only affects priority in the lottery if applications exceed funding. Higher-income families (above 500% FPL, roughly $155K for a family of four) are the last priority tier and have a cap on total participants. But they're still eligible.
Will this program exist next year?
The initial $1 billion funds the program for its first biennium (two years). Whether the Legislature renews, expands, or changes it depends on future sessions. The political momentum behind school choice in Texas is strong, but nothing is guaranteed beyond the current funding cycle.
Apply Before March 17
The official application is at the Texas Comptroller's TEFA website. It takes about 15 minutes if you have your documents ready.
Go to the Official TEFA Application →