If your kid has an IEP and you live in Texas, you may be hearing about two education grant programs at the same time: PDSES and TEFA. Both can fund tutoring, online classes, and educational support. Both run through state agencies. They are not interchangeable, and a kid cannot use both at once.
The split is about enrollment, not about whether you "left" public school. PDSES is for kids enrolled in a Texas public school. TEFA is for kids who are not enrolled in a Texas public school, including families who have always homeschooled and families enrolling in a participating private school.
Here is how to tell them apart and which one often fits.
The quick version
PDSES (Parent-Directed Special Education Services) is a one-time $1,500 grant for kids enrolled in a Texas public school who receive special education services through an IEP. It supplements what the school already provides. Your kid stays in public school, and you use the grant to fill gaps.
TEFA (Texas Education Freedom Accounts) is for families educating outside Texas public school, in a participating private school or through homeschooling. Kids with an IEP who attend a TEFA-eligible private school can receive up to $30,000 per year. Homeschool kids, including those with an IEP, receive $2,000 per year on the homeschool/other track. The IEP does not raise the homeschool dollar amount. It can change how TEFA ranks the application when demand is high.
Official Year 1 priority starts with kids with a disability whose household income is at or below 500% of the federal poverty level. Later groups are based on income. An IEP on file with TEA (or a program-approved proof-of-disability form) is how TEFA defines "children with a disability" for that ranking. Only kids with an IEP on file who are accepted into the program are eligible for the higher private-school disability award. Homeschool awards stay $2,000 [1].
A long waitlist means a homeschool application without that disability ranking is not guaranteed, and an award can land after classes have already filled. An active IEP in hand by the February application close can matter for ranking. It does not guarantee July 1 funding for every homeschool family.
PDSES is for families staying in Texas public school. TEFA is for families educating outside Texas public school.
PDSES: who it's for and what it covers
To qualify for PDSES, your kid must currently be enrolled in a Texas public school (PreK-12), receive special education services through an active IEP, and not have received a PDSES or SSES grant previously. It is a one-time grant per kid.
The $1,500 is deposited into a ClassWallet account. Approved uses often include online classes, private tutoring, educational materials, technology, and therapeutic services that support learning.
The 2025-26 PDSES spend-by date was July 10, 2026. A later cycle has been described as mid-to-late September 2026. Confirm your ClassWallet balance and current deadline with the program before you shop. See our guide to using PDSES funds for online classes for ClassWallet enrollment steps.
TEFA: what changes for IEP families
TEFA's first application window is closed for 2026-27. Roughly 100,000 kids have been awarded accounts. For IEP families, two tracks matter:
Private school track with an IEP: If your kid has a current IEP on file with TEA and attends a TEFA-approved private school, funding can go as high as $30,000, though many families receive less. The award is calculated from the IEP instructional arrangement code. Your award letter shows the figure.
Homeschool track with an IEP: If you homeschool with TEFA funds, the award is $2,000 regardless of IEP status. Families who are awarded on this track typically receive that amount as a single deposit into Odyssey. Approval timing can differ. An IEP can move a family up in priority. It does not change the $2,000 homeschool amount, and it does not mean every awarded homeschool family sees funds on the same day.
Private schools are not required to provide special education services under federal IDEA in the same way public schools are. Confirm with the school what support they offer before you enroll.
Side-by-side comparison
$20 off your first class WITH promo code: blog
Build the Education your Kid Deserves
Discover thousands of live classes taught by expert teachers, across academics and enrichment.
Browse classesCan a student participate in both programs?
No. PDSES requires Texas public school enrollment. TEFA requires that the kid is not enrolled in a Texas public school. The criteria do not overlap.
If you currently have PDSES funds and you later enroll outside public school, use remaining PDSES funds while the kid is still enrolled in public school. TEFA eligibility would apply in a later cycle, if awarded.
How to decide which program fits your family
The core question is whether your kid will stay enrolled in Texas public school.
If your kid is in public school and doing reasonably well, but you want more support: PDSES is designed for this. Use the $1,500 to add tutoring, enrichment classes, or therapeutic services alongside what the school already provides.
If you are considering a participating private school or homeschool, and you have concerns about whether needs are being met: TEFA may be worth exploring, especially if a qualifying IEP could unlock higher private-school funding. Leaving public school changes IDEA service obligations. Research that carefully before a future TEFA cycle.
If you already homeschool: You are not eligible for PDSES. TEFA's homeschool track is the option, at $2,000. An IEP does not raise that amount. It can matter for priority when there is a waitlist.
Using Outschool with either program
Outschool is an approved vendor under both programs:
For Outschool specifically, TEFA families buy student-specific credit bundles in Odyssey, then apply those credits on Outschool toward any subject. Credits are tied to that kid, not a shared family pot. See our Odyssey marketplace guide for the bundle steps.
Frequently asked questions
My kid left public school mid-year. Can they switch from PDSES to TEFA?
PDSES requires current public school enrollment. If your kid is no longer in public school, they are no longer eligible for PDSES. TEFA applications for 2026-27 have closed. The next window is expected in early 2027.
My kid has an IEP and we homeschool with TEFA funds. Are we giving up legal protections?
When a kid is no longer enrolled in public school, the school's obligation to provide IDEA-mandated services typically ends. Some families continue therapy and support with TEFA funds. Homeschooling with TEFA funds does not continue the school's duty to deliver IEP services. Families can still request evaluations and IEP paperwork in many cases. That process can stay formal even when the school is not delivering the services.
What if we're not sure whether to stay in public school?
You do not have to decide immediately. If your kid is in public school and eligible for PDSES, using those funds now does not block a TEFA application in a later year.
Does an IEP get a homeschool family more than $2,000?
No. Homeschool/other awards stay $2,000. An IEP (with the income rules above) can put the application in a higher priority group. That can affect whether and when funds are awarded, not the homeschool dollar amount [1].
Sources
[1] Texas Comptroller, Texas Education Freedom Accounts. "Families: Prioritization." educationfreedom.texas.gov/families/ (Year 1 priority: disability + household income at or below 500% FPL first; IEP on file required for the increased private-school disability funding amount).
.svg)
.svg)
