Acting Texas Comptroller Kelly Hancock has released the final rules and key implementation dates for the Texas Education Freedom Accounts (TEFA) program, marking a major milestone for the state’s newly created education savings account (ESA) initiative set to begin in the 2026–2027 school year.
TEFA was established during the 89th Legislative Session through Senate Bill 2, a contentious measure that passed without the support of any House Democrats and with opposition from two House Republicans. Gov. Greg Abbott signed the bill into law on May 3, setting in motion one of the most significant shifts in Texas education policy in years.
What the Program Does
Under the ESA model, eligible families will be able to access state-managed accounts to help cover private school tuition, homeschooling costs, tutoring, therapy, or other approved educational materials. Unlike vouchers—which provide all families the same flat amount—ESAs vary based on student needs and program eligibility.
According to the finalized rules, students enrolled in accredited private schools may qualify for approximately $10,300 annually, while students with disabilities who have an Individualized Education Program (IEP) may receive up to $30,000. Homeschool students may be eligible for $2,000 per year.
Prioritization will apply if demand exceeds available funding, with preference given to siblings of TEFA participants, students with disabilities, and low-income households.
“Education freedom accounts are about opening doors, expanding opportunities and giving each Texas child the chance to succeed in the environment that fits them best,” Hancock said in a November 25 press release.
Changes and Clarifications in the Final Rules
The comptroller’s office released draft rules in August, followed by a public hearing and a 30-day comment period that yielded more than 300 written submissions. Input came from a wide array of organizations across the policy spectrum, including the American Federation of Children, Association of Texas Professional Educators, Texas Catholic Conference of Bishops, Texas Home School Coalition, Texas Private Schools Association, and Texas Public Policy Foundation. The comptroller’s office reported that these groups “generally approve of the rules.”
Opposition came from others, including the Texas chapter of the American Federation of Teachers, which strongly opposed TEFA while still offering suggested revisions. The nonprofit Every Texan expressed dissatisfaction, saying the rules “fail to provide effective oversight of the program and that they do not contain adequate reporting mechanisms to understand how state dollars are spent.”
“The final rules reflect that input while remaining faithful to the law as passed by the Texas House and Senate,” Hancock said.
Key clarifications include:
Accredited private schools must have operated at least one campus for two years—inside or outside Texas—and must administer a nationally norm-referenced assessment.
Participating private schools must maintain a physical business location in Texas.
A family’s adjusted gross income will influence eligibility prioritization.
Students with disabilities may be prioritized based on an evaluation from a licensed expert, though an IEP is still required to receive higher funding levels.
TEFA participants in good standing will not need to reapply each year.
Next Steps for Schools, Vendors, and Families
Private schools and approved special-education service providers will be invited to join the program beginning December 9. A broader vendor application period will follow.
Families interested in participating will be able to apply online starting February 4, 2026, giving schools and service providers over a year to prepare for the program’s formal debut.
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