Beginning in the 2026-27 school year, the Texas Comptroller will provide funds to eligible students for tuition, tutoring, homeschool educational expenses, and other approved education expenses. The application window for use of these funds for a family for the 2026-2027 school year started this week on February 4, and closes March 17, 2026.
What does the law generally provide?
In 2025, the Texas Legislature passed Senate Bill 2 (SB 2) to create the Texas Education Freedom Accounts (TEFA) program. SB 2’s stated purpose is to (1) provide additional educational options to assist families in this state in exercising the right to direct the educational needs of their children; and (2) achieve a general diffusion of knowledge. In a practical sense, this new law might give parents financial assistance for a wide array of educational environments—public school, private school, or homeschool—for their children. However, opponents of this funding are concerned this legislation will delete funds available or public schools across the state of Texas. Furthermore, schools have to be willing to accept the funds and have sole discretion whether to do so.
What is required for a private school to be eligible for funds?
For those private schools wishing to participate, TEFA’s sweeping changes to Texas education raise questions about whether certain private schools will qualify. One example challenging the criteria is found in a request to the Attorney General, RQ-0625-KP, in which the Comptroller asked the Attorney General to interpret the “other relevant laws” language of Section 29.358 of SB 2 (“Preapproved Providers and Vendors”):
An education service provider or vendor of educational products that receives approval under this section may participate in the program until the earliest of the date on which the provider or vendor: (1) no longer meets the requirements under this section; or (2) violates this subchapter or other relevant law.
The Comptroller asked whether a private school may be disqualified from TEFA if it, or its providers or vendors, fails to comply with “other relevant laws” including those surrounding (1) affiliation with foreign terrorist organizations or transnational criminal organization; or (2) ownership, control, or influence by individuals or entities associated with a foreign adversary.
In Opinion No. KP-0509, issued January 24, 2026, the Attorney General explained the Comptroller—not the Attorney General—has the exclusive duty to establish and administer TEFA. The Comptroller alone must resolve the factual questions posed in its own request. However, SB 2 grants the Comptroller broad authority to find the facts necessary to lawfully administer TEFA. The Comptroller may hire third parties, request information from providers or vendors to verify eligibility, and work with auditors to ensure compliance. Texas Education Code §§ 29.352(a)(2), 29.358(d), 29.363(a).
For private schools seeking to participate in TEFA, SB 2 requires compliance with any laws the Comptroller deems “relevant.” Thus, the Comptroller first must establish processes that allow TEFA to operate lawfully, balancing scrutiny of each hopeful provider and vendor with timely approval to those who qualify; then, a hopeful private school must ensure compliance, including with its providers and vendors. A private school may look to the Texas Administrative Code for further guidance on provider and vendor approval. See 34 Tex. Admin. Code §§ 16.401-16.410.
What is required for a student and parent to be eligible for funds?
Among other requirements, a parent must prove the child is (1) a citizen or national of the United States or lawfully admitted in the United States; and (2) eligible to attend or enroll in a public school district or open-enrollment charter school. A participating parent must agree to spend funds only on allowable expenses, to refrain from selling items purchased with program money, and notify the program when their child is no longer eligible. Texas Education Code §§ 29.355, 29.357.
You can find a list of schools seeking to participate here: https://finder.educationfreedom.texas.gov/.
Conclusion
In conclusion, we are in a new educational landscape with Texas Education Freedom Accounts anticipated to be the most economically impactful program of its kind across the country. Only time will tell what impact the program will have on public schools. As for private schools, they must apply and meet eligibility criteria to participate. Families must follow the program procedures and meet the qualifications on citizenship and school eligibility.
Parents with questions about Texas Education Freedom Accounts can visit https://educationfreedom.texas.gov/ for more information. Schools with questions should feel free to give us a call to see if we can assist navigating this new landscape.
