Texas Education Freedom Accounts

The Complete Parents' Guide to Texas Education Freedom Accounts (TEFA/ESA)

Empowering You to Choose the Best Path for Your Child

A new era of educational choice is arriving for families across Texas. The Texas Legislature recently established the Texas Education Freedom Accounts (TEFA) program, also known as an Education Savings Account (ESA). This program expands your options by allowing a portion of state education funds to be used at your discretion, so you can choose the learning environment that best supports your child’s needs, strengths, and goals.

This guide is here to help you every step of the way. Below, you’ll find an easy-to-understand overview of who qualifies, how much funding may be available, and exactly how to apply.

What is a Texas Education Freedom Account (TEFA/ESA)?

The TEFA program creates publicly-funded, government-authorized savings accounts for eligible students in grades Pre-K through 12. Instead of state education funds going directly to a public school district, the money is deposited into an account you manage, and can be used for a variety of approved learning expenses for your child. Think of it as education funding that travels with your student, giving your family more flexibility to support the learning path that fits them best.

What Can the Funds be Used for?

All purchases and services must be on the approved TEFA purchase list, but the program is intentionally flexible to help families support what their child needs most. If an expense supports your child’s learning and falls within approved categories, there’s a good chance it may qualify, including:

Does my student qualify?

All Texas students in grades Pre-K through 12 that meet the basic eligibility requirements below are eligible to apply, regardless of whether they are currently in a public, private, or homeschooled setting.

Eligibility Requirements:

• The student must be a U.S. citizen or legal resident of Texas.
• The student must be eligible to attend a Texas public school.
• The student cannot be enrolled full-time in a Texas public or charter school while receiving TEFA funds.
• The parent must be a Texas resident.

Priority for Selection

Because TEFA offers a limited number of accounts each year, demand is expected to be high, and there are usually more applicants than available awards. If applications exceed open spots, students are selected through a lottery system.

To help ensure funding is awarded fairly, the state prioritizes students in four tiers, giving access to families and students with the greatest financial or educational needs first.

• Tier 1: Students with a documented disability (as defined by Texas Education Code) whose family income is at or below 500% of the Federal Poverty Guidelines (FPG).
• Tier 2: Children whose family income is at or below 200% of the FPG.
• Tier 3: Children whose family income is between 201% and 500% of the FPG.
• Tier 4: All other students. Within this group, students who currently attend a public school will be prioritized over students already enrolled in a private school.

How Much Money Can My Child Receive?

The amount of your TEFA award depends on your child’s educational setting and needs.

Key Financial Facts:

• Funds are distributed in quarterly transfers.
• Unused funds roll over from one year to the next as long as your child remains in the program.
• The funds are generally not considered taxable income.

How to Apply and Key Dates:

Parents will apply via a portal that is managed by the state, and provided through a vendor named “Odyssey.” Additional information on accessing the portal will be available on the timeline outlined below. Applications submitted on the below timeline will apply to funds that can be used starting in the 2026-2027 school year.

• September 1, 2025: The TEFA law (SB 2) officially takes effect.
• Fall 2025: The Texas Comptroller is expected to release final program details and portal instructions.
• Expected January/February 2026: The official TEFA application period is anticipated to open via the Odyssey portal for the 2026–2027 school year.
• Spring/Summer 2026: Approval notifications are expected to be sent out to families.

Application Checklist: What to Prepare

Before the application window opens, it is highly recommended that you gather the following documents:

1. Proof of Texas Residency: Current Texas driver’s license, state ID, or utility bill.
2. Student Identification: Birth certificate or passport.
3. Proof of Income: Recent tax return or pay stubs (crucial for qualifying for the priority tiers 1-3 outlined above).
4. Disability Documentation (If applicable): Individualized Education Program (IEP), 504 plan, or medical diagnosis.
5. Enrollment Verification: Acceptance letter or enrollment form from a participating private school (if applicable).

Next Steps for Parents

1. Stay Informed: Monitor the official program website for updates and the launch of the Odyssey application portal.
2. Research Providers: If you are planning to enroll your child in a private school, begin researching approved schools and service providers now.
3. Gather Documents: Prepare all the required paperwork so you are ready to apply the moment the window opens.

The Texas Education Freedom Account program is a significant opportunity designed to give parents more control over their child’s educational future. By understanding the eligibility criteria, funding amounts, and application process, you can be ready to explore a greater range of educational opportunities for your child starting in the 2026–2027 school year.