How to use TEFA funds for approved educational purchases

Congratulations! You've been awarded TEFA funding for your child's education, but how do you actually use those funds for approved educational expenses?

The Texas Education Freedom Account (TEFA) program uses the Odyssey marketplace to manage educational purchases for participating families. Through Odyssey, you can browse approved providers, purchase educational services and materials, track spending, and manage your TEFA funds all in one place.

This guide walks through how to use the Odyssey marketplace, make approved educational purchases, and avoid common first-time mistakes along the way.

What is the Odyssey marketplace?

Odyssey is the online platform used to manage TEFA funds and approved educational purchases. Through the Odyssey marketplace, you can browse approved educational providers and services, including private schools, tutoring, online learning programs, curriculum, therapies, technology, and other approved educational resources.

All TEFA purchases must be made through the Odyssey marketplace using your TEFA funds. You cannot pay providers directly and request reimbursement later, so it's important to confirm that a provider is approved through Odyssey before making educational plans or purchases. New providers are added to the marketplace on a rolling basis throughout the year.

Step 1: Log into your Odyssey account

Log into your Odyssey account at withodyssey.com. Once your TEFA funds become available, the dashboard will show your available balance, student account information, transaction history, marketplace access, and any outstanding tasks connected to your account.

Before purchasing educational services or materials, review your family's account information and confirm that all student and contact details are current and accurate.

When will your funds arrive?

Funding timelines differ depending on whether your student is enrolled as homeschool/other or attending a participating private school.

Homeschool/other students ($2,000 award):

• Receive the full $2,000 in a single installment — the entire award arrives at once
• Students who opted in by June 15 will receive funding on July 1
• Students who opt in by July 31 will receive funding by mid-August
• Students who come off the waitlist after July 15 may have their award prorated depending on when they confirm
• Students must confirm opt-in by September 15 to receive their full award amount

Private school students (award based on per-pupil funding, up to $30,000 for IEP holders):

• First 25% — July 1 (if the school confirms enrollment by June 15), or mid-August (if confirmed by July 31)
• Second 25% — October 1
• Remaining 50% — February 1, 2027
• Students must remain enrolled in a participating private school to receive each additional installment
• Students who join after July 15 may have funding prorated based on their confirmation date

Understanding this schedule helps your family plan educational purchases across the full school year — particularly for private school families who will receive funds in three rounds rather than all at once.

Step 2: Explore the marketplace before funds arrive

You do not need to wait until TEFA funds are deposited to begin exploring the Odyssey marketplace. Browsing early can help your family understand what educational services and providers are available before it's time to make purchases.

Families can search the marketplace by provider name, educational category, or location for in-person services. Depending on your child's educational needs, you may want to explore private schools, tutoring services, therapies, online learning programs, curriculum materials, technology, or enrichment opportunities.

Creating a list ahead of time can make it easier to prioritize your educational purchases once your TEFA funds become available.

Step 3: Review providers and educational offerings

Once you find a provider in the Odyssey marketplace, click into their profile to review available educational services, approved purchases, pricing information, and purchasing instructions.

Some providers offer individual classes or services directly through Odyssey, while others use a credit-based system. Outschool, for example, allows families to purchase credits through Odyssey and then apply those credits toward approved online classes and tutoring on the Outschool platform.

If your family already has a preferred provider in mind, confirm that the provider is currently approved through the Odyssey marketplace before making educational plans or purchases.

Step 4: Complete your purchase and save your records

Once you are ready to make a purchase, TEFA funds are deducted directly from your available Odyssey balance during checkout.

After completing a purchase, save your Odyssey purchase confirmation for your records. Your Odyssey account will also track your transaction history and remaining balance throughout the school year.

In addition to Odyssey's built-in transaction history, keep a simple spending log of your own. Because TEFA accounts may be subject to audit, clear documentation of your educational purchases matters. A spreadsheet, a notebook, or your phone's notes app all work — the goal is an organized record of what you've spent and what remains.

What counts as an approved TEFA expense?

TEFA funds can be used for a defined set of educational categories established by the Texas Comptroller's office. Understanding what qualifies — and what doesn't — helps you plan your spending before funds arrive.

Approved expense categories:

• Tuition and fees at a participating private school
• Online educational programs and courses (Outschool is an approved provider in Odyssey)
• Career and technical education (CTE) programs and industry credential courses
• Textbooks, curriculum materials, and workbooks
• Academic assessments and standardized tests (including SAT, ACT, and subject-specific assessments)
• Private tutoring
• Educational therapies not covered by government benefits (such as speech therapy or occupational therapy)
• Transportation to and from approved educational programs
• Computer hardware and software — capped at 10% of your total award

A note on the technology cap: For homeschool/other students with a $2,000 award, the 10% cap means up to $200 can go toward devices, software, or tech accessories. For private school students, the cap applies to your full award amount. Plan technology purchases accordingly so you don't exceed the limit mid-year.

When in doubt about whether a specific purchase qualifies, check with your Odyssey account or refer to the official approved expense guidance at educationfreedom.texas.gov before committing funds. TEFA purchases later found to be non-approved may need to be returned to the state.

Common first-time mistakes to avoid

Families new to the TEFA program may find it helpful to avoid these common mistakes when making educational purchases through Odyssey:

• Assuming a preferred provider is already approved through the Odyssey marketplace without checking first
• Waiting until TEFA funds arrive to begin researching providers and educational options
• Spending the full first installment immediately instead of planning across the full school year — especially relevant for private school families receiving funds in three rounds
• Forgetting that some providers may require additional processing time before credits or services become available
• Exceeding TEFA spending limits for certain categories, particularly the 10% technology cap

The Odyssey marketplace may feel unfamiliar at first, but most families become more comfortable after their first few purchases. Taking time to explore your options, plan ahead, and keep organized records helps your family make the most of your TEFA funds throughout the school year.

To use TEFA funds for Outschool classes, log into your Odyssey wallet, search for “Outschool” in the marketplace, and select the amount you’d like to transfer. Funds will typically appear in your Outschool account within one business day. From there, you can browse classes and complete your kid’s enrollment directly through Outschool.

This article is for informational purposes only. For official TEFA program information, including current approved expense guidance and funding timelines, refer to educationfreedom.texas.gov.