On Friday, August 22, Acting Texas Comptroller Kelly Hancock released proposed rules for the state’s newly-approved education savings account (ESA) program, a controversial initiative designed to expand school choice for Texas families. The rules mark the first formal step in implementing the program, which is slated to begin in the 2026–2027 school year.
During the 89th Legislative Session, Senate Bill 2 established the ESA program amid sharp partisan debate. The measure passed the Texas Senate and House but faced opposition from every House Democrat and two Republicans. Governor Greg Abbott signed the bill into law on May 3. Advocates of the legislation view it as a significant step toward increasing parental choice in education, while critics have expressed concern over diverting public funds to private education options.
In an August 22 press release, Hancock emphasized the importance of adhering to legislative intent. “It’s important that the rules for our first school choice program adhere strictly to the enacting legislation and keep us on track to have the program ready for families by the 2026–27 school year,” she said.
Eligibility and Enrollment
The ESA program will be available to children of Texas residents who are eligible to attend, but not currently enrolled in, a public school, open-enrollment charter school, or free pre-kindergarten program. Families wishing to participate will be required to submit proof of citizenship, residency, and income as part of a comptroller-approved application process.
Students with physical, mental, developmental, or learning disabilities will be given priority and may qualify for up to $30,000 in additional funding.
Funding Structure
According to the proposed rules, qualifying students will receive 85 percent of the statewide average amount of state and local funding per student in average daily attendance for the most recent school year. For 2025, the Texas Education Agency reported that amount at $13,405 per student, which means an ESA would provide $11,394. Homeschool students will be eligible for up to $2,000.
Any remaining funds in an ESA will roll over to the next school year, provided the student remains eligible and continues in the program.
Permitted Uses of ESA Funds
ESA funds may be used for a variety of educational expenses, including private school tuition, uniforms, meals, and technology purchases, although technology expenses are limited to 10 percent of the child’s total allocation. Families may also use the funds for costs not typically provided by public schools, such as textbooks, private tutors, educational therapists, and transportation.
All educational service providers and vendors receiving ESA funds must be registered to do business in Texas and are subject to state audits. The proposed rules explicitly prohibit providers from refunding any ESA money directly to participants or their families.
Autonomy and Oversight
The proposed rules also clarify the legal status of participants, providers, and vendors. They are considered autonomous and not “state actors” for receiving ESA funds. State agencies or officials cannot impose requirements that “are contrary to the religious or institutional values or practices” of these entities, ensuring that private or religious institutions participating in the program retain operational independence.
Public Input and Timeline
Hancock announced that public comments on the proposed rules must be submitted to the comptroller’s office within 30 days of their publication. “With input from parents across the state, we’ll make sure the ESA program reflects the best of Texas — freedom, accountability and a commitment to the next generation,” Hancock said.
The program is scheduled to begin in the 2026–2027 school year, with applications opening in early 2026. State officials have said the timeline allows for adequate preparation and communication with families and schools ahead of the program’s launch.
Context and Controversy
The ESA program has generated strong opinions on both sides. Proponents argue that it empowers families by giving them more options for their children’s education, particularly for students who may not thrive in traditional public schools. They point to the additional funding available for students with disabilities and the flexibility in how funds can be spent as key benefits.
Critics, however, have voiced concerns about the potential for public money to be redirected to private or religious schools. Some education advocates have questioned whether the funding formula will adequately support participating students and whether oversight measures will be sufficient to prevent misuse of funds.
Despite the debate, Hancock and supporters have framed the program as a measured approach that balances parental choice with accountability. The comptroller’s office has emphasized that careful rule-making and public input will be central to the program’s implementation.
As Texas prepares for the launch of the ESA program, families interested in participating are encouraged to monitor announcements from the comptroller’s office and submit comments during the 30-day public review period. The program represents one of the state’s first major steps toward expanding school choice, and its development will likely shape the conversation about education policy in Texas for years to come.
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