What Texas IEP families should know about TEFA

Families using the Texas Education Freedom Account (TEFA) program for a child with an Individualized Education Program (IEP) should understand how educational services and support may change when their child leaves the public school system.

TEFA funds may be used for approved educational expenses such as private school tuition, tutoring, curriculum, therapies, assistive technology, online learning programs, and other specialized educational supports through approved providers in the Odyssey marketplace.

At the same time, families should also understand that some educational services and protections available through the public school system may change once a child is no longer enrolled. Understanding how TEFA funding works can help your family make more informed decisions about educational services, support options, and long-term planning for your child.

How TEFA funding works for students with IEPs

Families of children with disabilities may qualify for additional TEFA funding if their child has an Individualized Education Program (IEP) on file with the Texas Education Agency (TEA) within the past three years at the time eligibility is determined and meets the program's qualifying requirements.

The exact funding amount varies by student and is based on the educational services outlined in the child's IEP. Eligible families may receive up to $30,000 per school year through TEFA, distributed in installments throughout the year. Unused TEFA funds roll over into future years.

To qualify for this level of TEFA funding, families must generally meet two conditions:

• The child must have a qualifying disability under the program guidelines
• An active IEP must be on file with the local school district by the end of the application period

Because educational services and support can look very different from family to family, it's important to understand both what TEFA may cover and how those services may change outside of the public school system.

Understanding how educational services may change

Educational services may look different outside of those provided through the public school system. While TEFA can provide flexibility and individualized educational choices, your family may also become more directly responsible for coordinating services and educational support.

‍Note that TEFA funds cannot be used for services already covered through Medicaid, CHIP, or other government-funded programs.

Your family may want to speak with a special education advocate or attorney to better understand how your child's services and protections could change based on their educational setting.

How to build and maintain your child's support plan

Before using TEFA funds, it may be helpful to create a clear picture of the educational and support services your child currently receives. While some services may continue regardless of educational placement, others may need to be replaced or coordinated independently.

• Make a list of the educational services, therapies, and supports your child currently receives
• Identify which services are funded through Medicaid or other government programs versus services funded through the school district
• Research approved providers and educational services available through the Odyssey marketplace
• Prioritize the educational services and supports that will have the greatest impact on the child's learning needs
• Continue participating in annual IEP meetings and district reviews to help maintain eligibility for the IEP funding tier in future years

If your family already has a preferred provider or specialist who is not yet listed in the Odyssey marketplace, you can encourage them to apply through the TEFA provider approval process so your child can continue receiving services from a familiar provider using TEFA funds.

Common TEFA questions for IEP families

Can I use TEFA funds for ABA therapy?

Potentially. Applied Behavior Analysis (ABA) therapy is a type of therapy often used to support children with autism and other developmental needs. TEFA funds may be used for certain educational therapies when those services are not already covered through Medicaid or other government-funded programs. Families should confirm eligibility directly with both the provider and current TEFA program guidelines.

Does TEFA affect my child's Medicaid eligibility?

Participating in TEFA should not directly affect Medicaid eligibility. However, TEFA funds cannot be used to pay for services already covered through Medicaid or other government programs.

If we leave the TEFA program, can my child return to public school?

In most cases, yes. Families may generally re-enroll their child in a Texas public or charter school in the future, though the district may conduct updated evaluations or reviews to determine services and placement.

Can TEFA funds be used for online learning or enrichment programs?

Yes. TEFA funds may be used for approved online educational programs and enrichment opportunities through approved Odyssey marketplace providers. Outschool is one approved provider offering live online classes and tutoring across a variety of academic and enrichment subjects. Families can purchase Outschool credits through their Odyssey wallet, and credits typically appear in their Outschool account within three business days.

This article is for informational purposes only and isn't legal or financial advice. Families should consult a qualified special education advocate or attorney for guidance specific to their child's educational needs and services.