Texas Governor Greg Abbott today signed Senate Bill 2 (SB 2) into law, officially establishing an Education Savings Account (ESA) program and setting the stage for one of the most sweeping changes to Texas’ education system in decades.
Speaking before a crowd of nearly 1,400 at the bill signing ceremony, Abbott declared the moment a historic turning point in Texas education policy.
“It is time that we put our children on a pathway to having the number one ranked education system in the United States of America,” Abbott said. “The day has arrived that empowers parents to choose the school that is best for their child.”
The ESA program allows parents to receive public funds in a state-managed account that can be used for private school tuition, homeschool materials, transportation, tutoring, and other approved educational expenses. The amount per student will be tied to 85% of the statewide average per-pupil funding, with additional support for students with disabilities. Homeschoolers will receive a capped ESA of $2,000.
The initiative, which comes with a $1 billion price tag from the state’s general revenue fund, is expected to support about 100,000 students during the 2026–2027 biennium. But long-term costs remain a flashpoint. Critics have cited a projected five-year impact exceeding $6 billion by 2029. State leaders, however, have pushed back against the fiscal concerns.
“With all due respect to the LBB, their projection is pure fiction,” Abbott said, referencing the Legislative Budget Board’s estimate. “Future ESA spending will only be what future legislatures appropriate to it.”
Lt. Gov. Dan Patrick and House Speaker Dustin Burrows joined Abbott at the ceremony, alongside Sen. Brandon Creighton (R-Conroe), Rep. Brad Buckley (R-Salado), and U.S. Sen. John Cornyn. Burrows, who played a central role in navigating the bill through the Texas House, praised the determination of his colleagues.
“Despite all of the noise, all of the attacks, they knew school choice was the moral thing to do,” Burrows said.
The bill narrowly passed the House last month in an 86–63 vote, with two Republicans — Rep. Dade Phelan (R-Beaumont), a former speaker, and Rep. Gary Vandeaver (R-New Boston) — joining all Democrats in opposition. School choice legislation has repeatedly stalled in the Texas House over the years, making this passage a hard-fought victory for Abbott and his allies.
In addition to lobbying the Legislature, Abbott reportedly spent over $12 million supporting pro-school-choice candidates in the 2024 elections. Former President Donald Trump also made a rare intervention by phoning into a private GOP caucus meeting to urge support for the bill. After its passage, Trump endorsed Burrows and all House Republicans who voted in favor.
“There were some times in November of 2023 I didn't know if we'd get here,” said Rep. Buckley. “But today is a day of hope. It’s a day of opportunity, and it’s going to be a day of changing lives.”
Supporters argue the new program gives families more freedom and flexibility to tailor education to their children’s needs. Critics, including public school advocates and many Democrats, warn that diverting public funds to private and home schools will further strain an already challenged public school system.
Education Savings Accounts are a relatively new but fast-growing concept in American education policy, with several Republican-led states having adopted similar programs in recent years. Texas’ version is among the largest in scope to date.
“We know that we want our kids' education to match their ambition,” said Sen. Creighton, a longtime advocate for the policy. “Their potential is too great to be limited by a one-size-fits-all system.”
With SB 2 now signed into law, attention turns to how the program will be implemented. Rules, vendor oversight, and eligibility processes will be developed in the months ahead — and could reignite political and legal battles as the state’s public education landscape adjusts to the new funding structure.
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