TEFA approved expenses: what you can (and can't) spend your Texas ESA funds on

TEFA approved expenses: the complete checklist

Texas Education Freedom Account (TEFA) funds went live on July 1, 2026. If your family received the homeschool award, $2,000 is now sitting in your Odyssey wallet, ready to spend on your child's education. The most common question families have right now: what exactly can it pay for?

This guide breaks down every approved expense category under Texas Education Code Chapter 29, explains what falls outside the rules, and walks through how spending actually works through the Odyssey marketplace. [1]

The full list of TEFA approved expenses

The Texas Comptroller's office recognizes nine categories of approved expenses for TEFA funds. Here is what each one covers.

Online educational courses and programs

This is the broadest category and the one most relevant to homeschool families. Any online course or program from an approved provider qualifies, including live classes, 1:1 tutoring sessions, and self-paced courses. Outschool is an approved provider on the Odyssey marketplace, so classes booked through Odyssey fall directly under this category.

What qualifies:

• Live group classes
• 1:1 tutoring
• Self-paced courses from approved marketplace providers

Private school tuition and fees

Families using TEFA to attend an eligible private school can apply funds toward tuition, enrollment fees, and required school fees. The private school must be an approved provider.

Note: Private school families receive a larger TEFA award ($10,474 for the 2026-27 year) paid in three installments.

Textbooks, curriculum, and educational materials

Printed and digital curriculum, workbooks, textbooks, and other instructional materials qualify. The materials must be directly tied to academic instruction, not general enrichment supplies.

What qualifies:

• Approved curriculum packages
• Student workbooks
• Required course materials
• Instructional software bundled with a course

What does not qualify:

• Purchases made outside of the Odyssey platform

Academic assessments

Standardized tests and assessments used to measure student progress or college readiness qualify. This includes the SAT, ACT, PSAT, AP exams, and subject-matter assessments.

What qualifies:

• College entrance exams
• Subject-specific standardized tests
• Diagnostic assessments from approved vendors

Private tutoring

One-on-one private tutoring from an approved provider qualifies. On Outschool's Odyssey marketplace, 1:1 tutoring sessions are bookable directly from your wallet and fall under this category.

What qualifies: private tutoring sessions from a vetted, approved tutor or platform listed on Odyssey.

Career and technical education (CTE) programs

Programs through an approved vendor, leading toward industry certifications or credentials qualify. This includes coding bootcamps, technical skills courses, and career-readiness programs from approved providers.

What qualifies:

• Certificate programs
• Industry-credential courses
• CTE coursework aligned with recognized credentials

Educational therapies

Therapies that support a child's ability to learn qualify, provided they are not already covered by a government benefits program. This includes speech therapy, occupational therapy (OT), behavioral therapy, and reading intervention. [1]

What qualifies:

• Speech-language therapy
• OT
• ABA therapy
• Similar services from licensed, approved providers, when not covered by Medicaid or another government source

What does not qualify:

• Therapies fully covered under an IEP through a public school district
• Services already reimbursed by Medicaid

Transportation to approved education providers

Transportation costs to and from approved education providers may qualify. The provider must be an approved TEFA vendor.

Computer hardware and software

Devices and educational software qualify, but with an important cap: no more than 10% of your total TEFA award can go toward hardware and software combined.

For homeschool families receiving $2,000, that means a maximum of $200 can go toward technology purchases. For private school families receiving $10,474, the cap is approximately $1,047.

What qualifies:

• A laptop, tablet, or desktop computer purchased from an approved vendor
• Educational software not bundled with an already-approved course

What does not qualify:

• Gaming systems
• Accessories without a clear educational purpose
• Software purchases that exceed the 10% cap

What TEFA funds do not cover

Only vendors who have gone through the approval process and are in the Odyssey marketplace are eligible for TEFA funds. Even if an expense seems educational in nature, the vendor must go through the approval process to accept TEFA funds as payment for their services or products.

• Food, clothing, and household items
• Personal care products and medical expenses
• Entertainment, streaming subscriptions, and general gaming
• Sports fees and recreational activities with no academic component
• Enrichment purchases from non-approved providers
• Therapies already covered by Medicaid or other government programs
• Technology purchases that exceed the 10% hardware/software cap

If you are unsure whether a specific expense qualifies, the Texas Comptroller's office and Odyssey support both offer guidance before you spend.

The 10% technology cap, explained

The cap is a hard limit, not a guideline. If your family's TEFA award is $2,000, you can spend no more than $200 on computer hardware and software combined across the entire program year. This applies even if you have funds remaining in your Odyssey wallet at year-end.

One common question: does educational software purchased as part of an online course count toward the cap? Generally, software bundled with an approved online course is categorized under "online educational courses," not "computer hardware and software," so it typically does not count against the cap. Standalone software products are the more common gray area. When in doubt, contact Odyssey support before purchasing.

How spending works through Odyssey

TEFA funds flow through the Odyssey marketplace, and spending works differently from a typical reimbursement program. You do not pay out of pocket and then submit receipts. Instead, your funds live in an Odyssey wallet, and you spend them directly through the platform when you find and enroll in an approved program.

Here is how the process works:

1. Log in at your Odyssey family portal.
2. Browse or search for approved providers, including Outschool.
3. Select the product or program you want to purchase.
4. Confirm your purchase. Funds are deducted directly from your wallet with no out-of-pocket charge.

Funds roll over from year to year as long as your child remains enrolled in the TEFA program, so there is no pressure to spend your full balance before the program year ends.

For a full walkthrough of navigating the Odyssey marketplace as a TEFA family, see our TEFA Odyssey marketplace guide.

How Outschool classes qualify

Outschool is an approved provider on the Odyssey marketplace. When you find Outschool through Odyssey and purchase a bundle of course/tutoring credits, that purchase falls under the "online educational courses and programs" expense category, one of TEFA's most clearly defined approved uses.

Three types of Outschool classes are available through Odyssey:

• Live group classes: scheduled, real-time classes with small groups of kids (typically 2 to 12)
• 1:1 tutoring: private sessions with a vetted Outschool teacher, bookable by the session or as a recurring schedule
• Self-paced courses: recorded, flexible courses that kids complete on their own schedule

ANo matter which bundle of credits you purchase, credits can be used for any TEFA-approved Outschool course, no matter the subject or course format. All three formats qualify as TEFA approved expenses when booked through Odyssey. For more on how the overall TEFA program works, see our TEFA guide for Texas parents.

Frequently asked questions

Can I use TEFA funds at the start of the school year before the next installment arrives?

Homeschool and other families received their full $2,000 award on July 1 in a single deposit. Private school families receive funds in three installments (25% July 1, 25% October 1, 50% February 1, 2027). You can only spend what is currently in your Odyssey wallet, so planning ahead by quarter is a useful habit for private school families.

What happens to unspent TEFA funds?

Funds roll over from year to year as long as your child remains enrolled in the TEFA program. You do not lose unspent money at the end of a program year.

Can I use TEFA funds for multiple children?

Each awarded student has their own TEFA account and Odyssey wallet. Funds are per-child and cannot be pooled across siblings.

Does Outschool offer classes for every age and subject through Odyssey?

Yes. Outschool classes on Odyssey cover core subjects (math, reading, writing, science, history), enrichment (art, music, coding), test prep, and 1:1 tutoring across all grade levels and learning styles.

What if I accidentally spend on something that does not qualify?

Contact Odyssey support immediately. All providers on the Odyssey marketplace are pre-approved, so purchases made through the platform are generally considered approved. Issues are more likely with purchases attempted outside the platform, which TEFA does not allow.

Where can I find the official list of approved providers?

The official approved provider directory lives inside the Odyssey marketplace portal. Families log in to browse and search approved vendors. The Texas Comptroller's office also maintains reference documentation at educationfreedom.texas.gov. [1]

Sources

1. Texas Comptroller of Public Accounts. (2026). Texas Education Freedom Account (TEFA) program overview and approved expense categories. educationfreedom.texas.gov