Real Questions Texas Parents Are Asking About TEFA in 2026

My TEFA funds just arrived. What do I do first?

If your TEFA funds landed in your Odyssey account on July 1, you are in the right place. Here is the short version of what to do next.

Log into your Odyssey account at withodyssey.com and confirm your available balance and student information are correct. Then browse the Odyssey marketplace for approved providers. All TEFA purchases must go through Odyssey — you cannot pay a provider directly and request reimbursement later.

If you are looking for online classes or tutoring, search for Outschool in the Odyssey marketplace. Outschool is an approved TEFA vendor. You purchase credits through Odyssey and then use those credits to enroll in classes directly on outschool.com. For a full step-by-step walkthrough of the Odyssey marketplace, see our TEFA Odyssey marketplace guide.

For families still waiting on funds: homeschool and other students who confirmed opt-in by July 31 will receive funding by mid-August. Students must confirm opt-in by September 15 to receive their full award.

About the approval process

I received my TEFA approval notification. What should I do next?

After receiving your approval notification, log into your Odyssey account to confirm your student's information, review your award details, and set up your account before funds become available. Use the time before funds arrive to browse approved providers in the marketplace, create a list of educational priorities, and confirm that providers you want to use are active in Odyssey. Being listed on the TEA provider finder does not guarantee a provider is purchasable in Odyssey, so always confirm inside Odyssey directly before making enrollment plans.

My child was not selected. Does that mean they are permanently ineligible?

Not necessarily. If your student was eligible but not selected during the TEFA lottery, they may receive priority consideration in future application cycles, particularly if a sibling is already enrolled in the program. Priority tiers in the TEFA lottery favor students with disabilities and lower-income households. Families can monitor future application windows and interest list openings at educationfreedom.texas.gov. The next application cycle for 2027-28 is expected to open with an interest list, and families can sign up now to stay informed.

Why might a student be found ineligible?

Eligibility decisions can be affected by several factors. Common reasons include inability to verify Texas residency, incomplete or unverifiable household income documentation, citizenship or lawful presence requirements not met, or failure to meet other eligibility criteria for specific funding tiers. If you believe your child was incorrectly found ineligible, you have options — see the appeals section below.

I have not received a TEFA notification yet. Should I be concerned?

Not necessarily. TEFA notifications are released in phases and some families receive them later than others. You can check your application status directly through your Odyssey account. If your account shows a pending or under-review status, no action is typically required while the review is in progress. Families who are placed on the waitlist will be notified if a spot opens, and waitlisted students may receive priority consideration in future cycles.

TEFA spending and approved expenses

Can TEFA funds be used for Outschool classes?

Yes. Outschool is an approved TEFA vendor in the Odyssey marketplace. Families search for Outschool in Odyssey, purchase credits, and then use those credits to enroll in live online classes and tutoring on outschool.com. Outschool offers live group classes, 1:1 tutoring, and self-paced courses across math, reading, writing, science, coding, foreign languages, arts, and more. Credits typically appear in your Outschool account within one business day of purchase through Odyssey.

Does Outschool offer a discount on credits?

Yes. Outschool offers tiered credit discounts: the more credits you purchase at once through Odyssey, the more you save per class. You can see current credit tiers at outschool.com/esa/texas. For families with a $2,000 annual TEFA award, buying credits in a larger bundle can stretch your funds further across the school year.

Can I use TEFA funds to pay a tutor who is not listed in Odyssey?

No. All TEFA purchases must go through approved providers in the Odyssey marketplace. You cannot pay a provider directly and submit for reimbursement. If a tutor you want to work with is not yet listed in Odyssey, check back periodically as new providers are added on a rolling basis. You can also ask your preferred provider whether they have applied to become an approved TEFA vendor.

Can TEFA funds be used to purchase a computer?

Technology purchases may qualify, but they are capped at 10% of your total annual TEFA award. For homeschool and other students receiving the $2,000 award, that means up to $200 can go toward devices, software, or technology accessories. For private school students, the cap applies to your full award amount. Plan technology purchases early so you do not accidentally hit the limit mid-year when you still need funds for classes or curriculum.

Can TEFA funds be used for therapy services?

Certain educational therapy services may qualify under TEFA guidelines, including speech therapy and occupational therapy, as long as they are approved educational expenses and are not already funded through another government program such as an IEP-based public school service. If your child receives therapies through the public school system, those specific services may not be eligible for TEFA reimbursement. When in doubt, verify with your Odyssey account or check the official guidance at educationfreedom.texas.gov before committing funds.

TEFA participation and enrollment rules

Can TEFA funds be used while a child remains enrolled in public school?

No. Students participating in TEFA cannot remain simultaneously enrolled in a Texas public or charter school. Families who withdraw from public or charter school to participate in TEFA should confirm their withdrawal is processed before the school year begins to avoid any enrollment conflicts. If your child later decides TEFA is not the right fit, they may re-enroll in a public or charter school, and unused TEFA funds would be returned to the state according to program guidelines.

What happens if unused TEFA funds remain at the end of the school year?

Unused TEFA funds roll over into future school years as long as your student remains enrolled in the TEFA program. You do not need to spend your full balance each year. This makes it worthwhile to plan purchases thoughtfully across the school year rather than rushing to spend before a deadline. Private school families receiving funds in three installments (July, October, and February) should plan spending in phases to match when each installment arrives.

What happens if we decide TEFA is no longer the right fit?

Families may withdraw from the TEFA program at any time. Students who withdraw can become eligible to re-enroll in a Texas public or charter school. Unused TEFA funds are returned to the state upon withdrawal. If your family is unsure whether to continue, there is no penalty for exploring your options — but consult the official guidance at educationfreedom.texas.gov before making a final decision, as re-enrollment rules and timing can vary.

IEPs and special education

Do students with IEPs qualify for additional TEFA funding?

Yes. Students with an active IEP on file with their local school district may qualify for significantly higher TEFA funding, including awards of up to $30,000 annually depending on the student's disability classification and household income. The standard homeschool/other student award is $2,000, while private school students with IEPs may receive up to $30,000 based on the state's per-pupil special education allocation. If your child has an IEP and you applied for TEFA, confirm your award tier in your Odyssey account.

What happens to IEP-related services if we leave the public school system for TEFA?

Students who leave the public school system to participate in TEFA may experience changes to certain IDEA-related rights and special education services previously provided by their school district. Once a student exits the public school system, the district is generally no longer obligated to provide IEP services under IDEA. However, maintaining an active IEP on file with your local district may remain important for continued eligibility for certain TEFA funding tiers. Families considering this transition should review their options carefully, ideally with a special education advocate or attorney, before withdrawing from public school.

Can a student maintain an active IEP while participating in TEFA?

Yes. Maintaining an active IEP on file with your local school district is important for continued eligibility for higher TEFA funding tiers. Even if your child is no longer attending public school, keeping the IEP active on record may affect your award amount. Check with your district's special education coordinator about how to maintain IEP documentation while your child is enrolled in TEFA.

How to appeal a TEFA ineligibility decision

If your child was found ineligible for TEFA and you believe the decision was made in error, you may have the option to file an appeal. Here is how to approach the process.

Step 1: Review the reason for ineligibility. Your notification should indicate why your student was found ineligible. Common reasons include residency verification issues, income documentation gaps, or citizenship and enrollment status questions. Understanding the specific reason helps you gather the right supporting documents before filing.

Step 2: Gather documentation. Depending on the reason, you may need documents such as proof of Texas residency (utility bills, lease agreements, or government-issued ID with a Texas address), income verification (tax returns, pay stubs, or benefits documentation), proof of citizenship or lawful presence, or confirmation of your child's enrollment status.

Step 3: Contact the TEFA program through your Odyssey account. Appeals and eligibility questions are handled through the TEA and Odyssey. Log into your Odyssey account to find contact options, or reach out through the Odyssey TEFA support center at support.withodyssey.com. You can also contact the TEA directly through educationfreedom.texas.gov.

Step 4: Submit your appeal promptly. Appeals are typically time-sensitive. Submit as soon as possible after receiving your ineligibility notice, and keep copies of everything you submit for your records.

Step 5: Continue monitoring your account. After submitting your appeal, check your Odyssey account periodically for status updates. There is no universal timeline for appeal decisions, but staying on top of your account ensures you do not miss any requests for additional documentation.

TEFA waitlist: what to do while you wait

If your child was placed on the TEFA waitlist rather than selected in the lottery, here is what to know.

Waitlisted students may receive an offer if a selected student withdraws from the program. Priority for waitlist offers generally follows the same income and disability-based tiers used in the original lottery. There is no action required to remain on the waitlist — your application stays active.

While you wait, it is worth exploring other educational funding options that may be available to your family. Texas also offers the PDSES grant (up to $1,500 for students with active IEPs enrolled in a public school), and there are federal and private scholarship options worth researching. See our ESA waitlist guide for a broader overview of what to do while you wait for any ESA program.

This article is for informational purposes only and is not legal or financial advice. For official TEFA program information, refer to educationfreedom.texas.gov.