.jpg)
On the day applications were set to close for the Texas Education Freedom Accounts (TEFA) program, U.S. District Judge Alfred Bennett extended the deadline for families to March 31, 2026. The move comes amid growing legal challenges over the program’s treatment of Islamic schools, which had not yet been approved for participation.
The TEFA program, which launched in December 2025, originally set the application cutoff for March 17 at 11:59 p.m. Designed as a $1 billion school choice initiative, TEFA provides roughly $10,500 per student, with up to $30,000 allocated for students with disabilities and $2,000 for those who are homeschooled. Low-income students and those with disabilities are given priority under the program.
Since opening vendor and school applications on December 9, TEFA has seen rapid enrollment interest. Over 600 schools applied within the first month, and by March 16, more than 200,000 students had submitted applications, with over 2,200 schools signing up to participate.
The extension followed Bennett’s concern over the absence of approved Islamic schools in the program. The judge directed the Texas Comptroller of Public Accounts to ensure that applications were sent to schools that had not received them, citing troubling gaps in outreach.
Two federal lawsuits have now been filed against acting Comptroller Kelly Hancock and other officials, alleging discrimination against Islamic schools. The first lawsuit, filed on March 1, was brought by a Houston parent on behalf of his children, claiming that their school, a Cognia-accredited Islamic K–12 institution, met all statutory criteria for TEFA but was excluded solely due to its religious affiliation. The plaintiff argued that the family could lose more than $20,000 in funding for the 2026–2027 school year if the school remained ineligible.
The second lawsuit, filed on March 11, involves Bayaan Academy, the Islamic Services Foundation, and The Eagle Institute, along with several parents. Plaintiffs contend that the absence of Islamic schools on the TEFA approved list deterred families from applying. Attorneys representing the schools highlighted instances where schools attempted to submit applications but were unable to do so, underscoring concerns about access and fairness.
The program’s administration has faced scrutiny over the vetting process for participating schools. In December, Hancock requested a legal opinion from Texas Attorney General Ken Paxton regarding whether any school with ties to terrorist organizations or hostile foreign governments could participate in TEFA. The legal review was prompted by concerns over schools accredited by Cognia, which Hancock noted had allowed events involving the Council on American-Islamic Relations (CAIR), an organization previously designated by Governor Greg Abbott as a “foreign terrorist” and “transnational criminal” group.
Paxton’s opinion affirmed that the comptroller has the authority to block funds from schools connected to terrorist or foreign adversarial groups. According to legal counsel representing Paxton, Hancock, and the Texas Education Agency, the comptroller’s office has encountered processing delays with Cognia-accredited schools, which have slowed approvals regardless of religious affiliation. They emphasized that TEFA does not collect information on a school’s religion or profile schools based on their names.
Despite these assurances, advocacy groups have raised concerns about potential discrimination. The Texas Private Schools Association has requested that schools be allowed to demonstrate that they have no ties to terrorist organizations, pointing to strong academic programs and community culture in many Islamic schools seeking to participate.
The controversy comes amid a broader political climate in Texas where Islam and Sharia law have become prominent issues. Abbott and other state leaders have repeatedly emphasized opposition to Islamic influence in public and private institutions, citing security concerns. Legislative efforts and public votes in recent months, including a state referendum on prohibiting Sharia law, have further heightened tensions. Additionally, local developments, such as the East Plano Islamic Center’s proposed “EPIC City” community, have drawn public attention and litigation.
TEFA program officials have maintained that the March 17 deadline applied to families rather than schools and emphasized that new schools would be approved on a rolling basis. This flexible approach is intended to allow families more time to select from an expanding list of participating schools throughout the spring and summer.
The legal and political debates surrounding TEFA highlight ongoing tensions between school choice, religious freedom, and state security policies. As the March 31 extended deadline approaches, families seeking to participate in the program may face uncertainty, particularly if additional schools remain unapproved or legal challenges continue to progress.
For now, federal court involvement has temporarily slowed the closure of the program, providing some families with additional time to access funds. The outcome of the lawsuits and administrative decisions may set important precedents for how Texas balances taxpayer oversight, school choice, and protections for religiously affiliated schools in the future.
.jpg&description=Federal judge extends deadline for Texas Education Freedom Accounts program){kind=link}