The Texas Education Freedom Account (TEFA) program is a new education savings account created by the Texas Legislature in 2025 to give families more choice in how their kids learn. Funds from TEFA will first be available for the 2026–27 school year. Applications opened February 4, 2026. Eligible children accepted into the program can receive state funds in a TEFA account to pay for approved education-related expenses, such as private school tuition, homeschooling materials, tutoring, and more.
This guide is designed to give parents a clear, practical overview of how Texas Education Freedom Accounts work, who is eligible, how much funding kids may receive, and what to consider as you decide whether to apply. It is informational, not legal or financial advice, and you should always refer to the official TEFA website for the most current details.
What is the Texas Education Freedom Account program?
The Texas Education Freedom Account program is an education savings account (ESA) program. Instead of funding going directly to a public school district, a portion of state money is deposited into an account for an eligible child. Parents can then use those funds to pay for a range of approved educational services through a state-managed online marketplace.
Key dates for Texas Education Freedom Account in 2026 and 2027
If you are planning around the TEFA timeline, here are the main dates to know for the first year of the program (please confirm dates on the TEFA website, as these dates are subject to change):
- February 4, 2026 – Parent application window opens
- March 17, 2026 – Parent application window closes
- Early April 2026 – Families begin receiving notification of funding status
- July 1, 2026 – At least 25 percent of approved funding is available in participant accounts
- October 1, 2026 – At least 50 percent of the total approved funding is available
- April 1, 2027 – Remaining funds for the 2026–27 school year are deposited into accounts
Any funds not used by the end of the school year can roll over to future years, as long as the child remains in the TEFA program and continues to meet eligibility requirements.
Who is eligible for a Texas Education Freedom Account?
Eligibility for a Texas Education Freedom Account is based on the child and the parent. According to the state program guidelines, a child is eligible if:
- The child is a U.S. citizen, U.S. national, or lawfully present in the United States
- The child is eligible to attend a Texas public school, open-enrollment charter school, or public pre-K or kindergarten program
- The child resides in Texas
If a child is accepted into TEFA, they generally remain eligible until one of the following happens:
- They graduate from high school
- They are no longer eligible to attend a Texas public school, charter school, or qualifying pre-K or kindergarten program
- They enroll in a Texas public school or charter school
- They move out of Texas
There are specific rules for children ages 3 to 5 who enroll in pre-K or kindergarten through TEFA. The official TEFA site includes a detailed section on Pre-K eligibility, and parents of younger children should review that information carefully before applying.
How much funding can my child receive through TEFA?
The amount available in a child’s Texas Education Freedom Account depends on their learning setting and disability status. For the 2026–27 school year, the program outlines three main categories.
Private school students
A participating child who attends an approved private school, pre-K, or kindergarten program receives 85 percent of the estimated statewide average state and local funding per student in Texas public schools. For 2026–27, the Texas Education Agency has set this amount at:
- $10,474 per child per year if the student attends an approved private school or a qualifying early childhood program
Students with disabilities who have an IEP
A participating child with a disability who has an individualized education program (IEP) on file with their local school district may be eligible to receive:
The exact amount is based on the special education funding that the child’s local school district would receive for services under the IEP. Parents must ensure the IEP is on file with the Texas Education Agency by the end of the application period.
Homeschooled and other non–private school students
A participating child who is homeschooled or not enrolled full-time in an approved private school, pre-K, or kindergarten program may be eligible to receive:
This funding is intended to support homeschooling and other non–school–based educational expenses that meet the program’s approved-use criteria.
Will every eligible child be approved?
Not necessarily. If more children apply than there are funds available, TEFA uses a lottery system with priority groups based on household income and disability status.
For the 2026–27 school year, the first year of TEFA, the law prioritizes:
- Children with a disability in households with income at or below 500 percent of the Federal Poverty Level
- Children in households with income at or below 200 percent of the Federal Poverty Level
In later years, priority also considers siblings of participating children, new applicants, and certain returning participants who left the program to enroll in public or charter schools.
What can Texas Education Freedom Account funds be used for?
Approved Texas Education Freedom Account expenses cover a wide range of education-related services and materials. All purchases must be made from approved providers or vendors through the TEFA marketplace, and funds cannot be used to pay family members for services.
Here are the main categories of approved expenses: (educationfreedom.texas.gov)
Educational services and programs
TEFA funds can be used for:
- Tuition and fees at approved private schools
- Tuition and fees for higher education providers
- Online educational courses or programs, including out-of-state providers that have been approved to participate
- Programs that lead to industry-based credentials approved by the Texas Education Agency
- Fees for certain classes offered by school districts that do not count toward average daily attendance
Instructional materials and essentials
Parents may use TEFA funds to pay for:
- Textbooks and instructional materials
- Required uniforms
- Computer hardware and software, as long as tech spending does not exceed 10 percent of the total amount transferred into the child’s account that year
Other approved expenses
Additional approved expenses include:
- Academic assessments
- Private tutoring
- Transportation costs to and from approved providers
- Certain educational therapies that are not covered by federal, state, or local government benefits, such as Medicaid
- Meals provided by a private school
Any expense not on the approved list or purchased from an unapproved vendor is not allowed under the program, and accounts may be audited to ensure compliance.
How does the TEFA application and lottery process work for families?
Parents will apply for a Texas Education Freedom Account through the official online portal hosted by Odyssey. The parent who applies must be a Texas resident and may be a natural or adoptive parent, legal guardian, conservator, custodian, or another person with legal authority to act on behalf of the child.
A typical TEFA application process will look like this:
- Create an Odyssey account
- Set up your parent profile and add each child you are applying for.
- Complete eligibility verification
- Upload required documents showing your child’s age, Texas residency, and eligibility to attend public school, charter school, or pre-K or kindergarten.
- If applying under an IEP, ensure the IEP is on file and meets TEFA requirements.
- Submit your application between February 4 and March 17, 2026
- You can log back in to check application status and respond to any document requests.
- Receive your funding notification
- Beginning in early April 2026, families are informed whether their child has been awarded a Texas Education Freedom Account and the amount of funding.
- Select schools, classes, and services through the marketplace
- Once funds are deposited, parents can log into the TEFA marketplace, view approved providers, and allocate funds to specific expenses.
If the number of applications exceeds the amount of funding appropriated, the state uses the lottery process and the priority groups described earlier to determine which children receive awards. Participants who remain in good standing do not need to reapply in full each year, but families will confirm their wish to continue in the program.
What should Texas parents consider before using a TEFA account?
Deciding whether to use a Texas Education Freedom Account can feel like a big step. Here are some key questions and considerations that may help you think it through:
1. Your child’s learning needs and style
- How does your child learn best in small groups, one-on-one, online, in person, or a mix?
- If your child is neurodivergent or has a disability, which environments have felt most supportive so far, and how might TEFA help you access similar or better options?
2. How TEFA might change your school enrollment
- If your child is currently in a Texas public or charter school, how would moving to a private school or homeschool setting affect their day-to-day life, friendships, and services?
- Are you considering using TEFA to supplement a traditional setting with extra classes or tutoring, or to replace that setting completely?
3. Budgeting and realistic expectations
- If your child attends a private school, how might TEFA funds fit into your overall tuition plan? Would you still need scholarships or family contributions to cover the full cost?
- If you homeschool, how would you prioritize spending up to $2,000 per year across curriculum, materials, classes, or technology?
4. Recordkeeping and planning
- How will you track expenses, receipts, and important dates to stay in good standing with the program?
- What steps could you take to map out your child’s school year in advance so TEFA funds align with major costs like tuition, materials, or planned courses?
It can help to create a written learning plan for your child, then see how TEFA might support that plan, rather than starting with the funding and working backward.
Where to find official information about Texas Education Freedom Account
Because the Texas Education Freedom Account program is new and may evolve, parents should always go back to official sources for the most recent and detailed information. Reliable starting points include:
- The official TEFA website, which covers eligibility, funding, timelines, and FAQs in depth, as well as tools to find participating schools and educational services in your area
- Disability certification forms, pre-K eligibility details, and special education resources linked from the TEFA site for families of children with disabilities or IEPs
- Email signup options on the TEFA site so you can receive updates directly from the Texas Comptroller’s office about any changes or new information
For questions about how TEFA may interact with your child’s special education services or rights under federal law, it is also wise to consult with your child’s current school or a legal professional familiar with Texas education law.
Final thoughts for Texas families exploring TEFA
The Texas Education Freedom Account program gives parents more ways to customize learning, which can feel empowering and overwhelming at the same time. You do not have to make every decision at once. It is completely reasonable to read, ask questions, attend information sessions, and take your time deciding if TEFA fits your child and your family.
If you are exploring flexible learning options to complement your child’s education, you can browse live online classes, one-on-one tutoring, and self-paced learning on Outschool to see what sparks your learner’s curiosity and supports their goals. When you are ready, you can return to the official TEFA site to see how a Texas Education Freedom Account might help you fund the mix of learning experiences that fits your child best.
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