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Texas Unveils $1 Billion Education Savings Account Program

Texas has introduced a new opportunity for families seeking to send their children to private schools through the state’s education savings account program. Announced by Governor Greg Abbott in May 2025, the initiative will allow families to apply for funding starting on February 4, 2025. This program, known as the Texas Education Freedom Accounts (TEFA), has been allocated a total of $1 billion to support eligible families.

The TEFA program is designed to provide approximately $10,500 per year for each eligible student. Families can use these funds for a variety of educational expenses, not limited to private school tuition. Inga Cotton, founder and executive director of the School Discovery Network, describes the program as “broader than a traditional voucher.” She compares it to a health savings account that offers flexibility in how funds can be utilized.

Application Process for TEFA Funding

To access the TEFA funding, families must complete two distinct processes. First, they must apply to and gain acceptance from their chosen private school. Following this, families will need to apply for TEFA funding through the state program. The application window will remain open from February 4 to March 17, 2025, and families are advised to prepare necessary documentation in advance. These documents include the previous year’s tax return, proof of disability documentation if applicable, and other household income verification.

Funding priority will be given to students with diagnosed disabilities and families whose income is less than five times the federal poverty level. This focus aims to ensure that the most vulnerable students benefit from the program.

Utilizing TEFA Funds

The TEFA funds can be used for a range of educational expenses, which include private school tuition, school uniforms, transportation, meals, school supplies, tutoring services, and educational equipment. If families do not utilize the full amount within the year, they have options to either roll over the remaining funds for high school expenses or save them for future educational services.

Cotton encourages families to explore the official TEFA webpage to identify participating schools that accept these funds. She emphasizes the importance of researching and applying to multiple schools to enhance the likelihood of receiving a placement.

The initial timeline for the program indicates that families will be notified of their acceptance in Spring 2026, with the first payments expected to be available in July 2026. The program’s effectiveness will undergo evaluation during the 2027 legislative session, where data on student performance and program usage will inform future funding decisions.

Families seeking more information can attend community information sessions, visit the official TEFA website, or contact participating schools directly. The School Discovery Network will also provide town hall events and individual consultations to assist families in navigating the application process and understanding their available options.

This initiative represents a significant shift in Texas’s educational landscape, potentially expanding opportunities for families seeking alternatives to traditional public schooling.

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