The Texas Comptroller of Public Accounts has announced that every student in the top priority tier who applied for the state’s new education savings account program will receive funding for the upcoming school year, marking a significant milestone in the rollout of the Texas Education Freedom Account (TEFA).
According to the Comptroller’s office, the top priority tier includes students with qualifying disabilities who live in households earning at or below 500% of the federal poverty level. Program rules also allow siblings of accepted students to participate, expanding the reach of the initiative. In total, 42,644 students—including both qualifying applicants and their siblings—will receive awards and will be notified this week.
The TEFA program, funded with $1 billion by the Texas Legislature for its first year, is designed to provide families with public funds that can be used toward private school tuition or homeschooling expenses. Students with disabilities are eligible to receive up to $30,000 annually, while students attending private school can receive $10,474. Homeschooling families may receive up to $2,000 per student.
“School choice funds being distributed to Texas families paves the way for Texas to become the No. 1 state for education,” said Greg Abbott in a news release. “These accounts will give parents the freedom to choose the best learning environment for their children, regardless of their income or location.”
A closer look at the initial group of awardees shows that 63%—approximately 26,866 students—qualify directly under the top priority tier due to disability and income status. The remaining 37%, or about 15,778 students, are siblings who were included under program guidelines.
The data also reveals a diverse mix of current educational settings among recipients. About 53% of students in this first group are currently enrolled in public schools, while the remaining 47% are either in private schools or being homeschooled. Notably, more than 31,500 students in this group intend to attend private school in the next academic year, suggesting that a significant portion of families plan to use the funds to transition out of the public school system.
Despite the large number of initial awards, funding remains limited relative to demand. The Comptroller’s office confirmed that additional slots are still available, and the next phase will focus on applicants in the second priority tier. This group includes students from households earning at or below 200% of the federal poverty level.
However, officials acknowledge that demand in the second tier exceeds the remaining funds. As a result, the Comptroller’s office, in partnership with an independent agency, will conduct a lottery next week to determine which applicants will receive funding. Those not selected will be assigned waitlist numbers in case additional funding becomes available or spots open up.
At this time, the exact amount of funding remaining after the first round of awards has not been disclosed. High Plains Pundit has reached out to the Comptroller’s office for clarification and is awaiting a response.
For families receiving awards this week, several deadlines are approaching. Recipients will have 30 days to appeal the amount of funding they are awarded. According to the Comptroller’s office, appeals must be supported by documentation from the student’s school district and their Individualized Education Program (IEP), which outlines specific services and goals for students with disabilities.
Additionally, families must provide proof of enrollment in an approved private school or homeschool program by July 15 to secure their funding for the upcoming year.
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