With more than 95,000 students on the waiting list, supporters are pushing to expand Texas Education Freedom Accounts while opponents question its cost and impact on public schools.
The outcome of November’s election could determine whether Texas expands its $1 billion education savings account program, as supporters push for additional funding and opponents question its impact on public schools.
Texas Education Freedom Accounts (TEFA), approved during the 2025 legislative session, has attracted more applicants than available funding can accommodate. While property taxes, affordability and data centers have received greater attention on the campaign trail, the program’s future could depend on the makeup of the Texas House when lawmakers return to Austin in January.
A New Program With Strong Demand
Gov. Greg Abbott made school choice an emergency legislative priority during his 2025 State of the State Address.
“An essential element to this process is empowering parents to choose the school that’s best for their child,” Abbott said, adding that parents “know far better what’s best for their child than do government mandates.”
Lawmakers subsequently passed Senate Bill 2, establishing state-funded accounts for private school tuition, tutoring, homeschool materials and other eligible education expenses.
The program provides approximately $10,500 for qualifying students, up to $30,000 for students with disabilities and $2,000 for homeschooled students.
During an October 7 Senate Education Committee hearing, TEFA Assistant Director Travis Pillow said the program received more than 274,000 applications in its first year. More than 116,000 students are participating, while over 95,000 remain on the waiting list.
Another 65,000 students have joined an interest list for the 2027–2028 school year.
Pillow said nearly 20 percent of participating students have qualifying disabilities, while 62 percent come from families earning approximately $66,000 or less annually for a household of four.
The Political Battle in the House
The Texas House approved SB 2 in April 2025 by an 86–61 vote. Only two Republicans voted against it: former Speaker Dade Phelan of Beaumont and state Rep. Gary VanDeaver of New Boston.
The Senate passed the measure 19–12, with Republican state Sen. Robert Nichols of Jacksonville opposing it.
Other Republicans expressed reservations but ultimately supported the legislation.
State Rep. Trent Ashby, R-Lufkin, told the *Lufkin Daily News* there were “more than enough votes” for school choice to pass.
“Instead of sitting idly by and allowing flawed legislation to pass through the legislative process, I felt compelled to do everything in my power to improve the bill,” Ashby said.
State Rep. Jeff Barry, R-Pearland, offered a more pointed explanation in a Facebook response to a constituent.
“The bill was passing regardless of my vote. If I voted against it, I would have had every statewide and national political figure against me,” Barry wrote.
He also expressed concern that his bills and appropriations were at risk.
Democrats need to flip 14 seats to gain control of the House. At the Texas Tribune’s September TribFest, state Rep. Barbara Gervin-Hawkins, D-San Antonio, predicted a more modest gain of six to eight seats.
“We have a great shot at taking the Texas House,” said state Rep. Jon Rosenthal, D-Houston, the Democratic nominee for railroad commissioner.
House Democratic leader Gene Wu said the party was investing in races throughout Texas rather than concentrating exclusively on competitive districts. Democrats have candidates in all 150 House races, he said.
However, Democratic gubernatorial candidate Gina Hinojosa offered a more cautious assessment, predicting Texas would not have a “Democratic-dominated legislature.”
Even limited Democratic gains could narrow the margin for expanding TEFA, particularly if Republicans who previously questioned the program reconsider their support.
Supporters Push for Expansion
At a recent Texas Public Policy Foundation event, school choice advocates celebrated TEFA’s launch while emphasizing the need for additional educational options.
“It’s off to a great start, but I would say where we stand right now is happy, not satisfied,” Pillow said. “There's a lot more to do.”
Madison Yandell, a PK–12 education policy adviser to Abbott, said private school capacity and the range of available options need to grow.
Texas Public Policy Foundation senior fellow Mandy Drogin described growing demand for traditional private schools, microschools, homeschooling and blended education models.
The state’s Republican leadership has signaled continued financial support.
In July, Abbott, Lt. Gov. Dan Patrick and House Speaker Dustin Burrows protected TEFA and public education from base-budget reductions requested of most state agencies.
In September, Comptroller Don Huffines requested $2.3 billion for TEFA in the 2028–2029 budget.
During an October 8 Texas Tribune panel, state Rep. Jeff Leach, R-Plano, said TEFA is “not going away” and predicted supporters would “double down” during the 90th Legislative Session.
Still, Leach urged lawmakers to evaluate the program based on “facts and data and not politics.”
Critics Question Costs and Accountability
Democratic lawmakers have pressed administrators on public school funding, academic accountability and whether participating schools can adequately serve students with disabilities.
At the October 7 hearing, state Sen. Royce West, D-Dallas, asked Pillow how much money public schools had lost because of TEFA.
Pillow said he did not know, calling it “not a question with a straightforward answer.”
That same day, public school advocacy group Our Schools Our Democracy claimed TEFA was costing Texas public schools $294 million. The figure was the organization’s estimate, not a loss established by Pillow’s testimony.
Critics also question who benefits from the program.
According to comptroller data as of August 10, approximately 70 percent of recipients previously attended private schools or were homeschooled, while 30 percent previously attended public schools.
At the Dallas panel, state Rep. Venton Jones, D-Dallas, advocated “removing” TEFA entirely, arguing that taxpayer resources were flowing to families already using private education.
State Sen. José Menéndez, D-San Antonio, questioned why homeschool participants are not required to take standardized tests.
Pillow confirmed that testing requirements apply to private school students in grades three through 12, but not homeschooled recipients.
West also raised concerns about students with disabilities, citing information suggesting approximately one in four ultimately decided against attending private school.
Pillow said the comptroller’s office planned to survey those families to better understand their decisions.
Legal Challenges and Oversight
TEFA has also faced litigation over access for Islamic schools.
Two federal lawsuits filed in March alleged that the program excluded Islamic institutions.
U.S. District Judge Alfred Bennett described the lack of approved Muslim schools as “troubling” and ordered additional steps to ensure schools received application opportunities.
Some Islamic schools subsequently gained approval and are now listed in TEFA’s School Finder.
Separately, state Sen. Brent Hagenbuch, R-Denton, questioned whether schools associated with the Council on American-Islamic Relations were receiving TEFA funding.
Pillow said participating schools must comply with applicable laws and offered to follow up with the senator.
Pillow has also emphasized transparency, reporting more than 350 public records requests and three layers of auditing, including internal, external and state auditor reviews.
“Securing the trust and confidence of taxpayers and their elected representatives is absolutely critical,” he said.
What Comes Next?
The debate extends beyond how much money lawmakers appropriate. Expanding TEFA could allow more families to participate, but it would also intensify questions about accountability, student outcomes and the program’s financial impact on public education.
Lawmakers must decide not only how much to spend, but also how to measure whether the program is delivering the educational choices and results promised when the legislation passed.
The 90th Legislative Session begins January 12, 2027.
Although the November election will not determine TEFA’s future by itself, its results could decide whether the program receives billions more in funding, undergoes significant changes or faces renewed efforts at repeal.
