Key details for families applying to Texas’ new education savings accounts

Texas has finalized the rules for its new education savings account program, which will give qualifying families state funds for private schooling or homeschool expenses. The initiative, called Texas Education Freedom Accounts, was approved earlier this year and will begin before the 2026 27 school year.

Private schools and education vendors that already participate in the Parent Directed Special Education Services program may apply to join the ESA system starting Dec. 9. Additional vendors will be able to apply soon after. Families can begin submitting applications on Feb. 4. Odyssey, a company that operates similar programs in five states, is developing the online application portal.

Most accepted students will receive about 10,300 dollars to help cover tuition at accredited private pre K through grade 12 schools. The funds may also be used for textbooks, tutoring, transportation and therapy services. Homeschooling families can receive up to 2,000 dollars per year. Students with disabilities may qualify for as much as 30,000 dollars annually, depending on their needs.

Students who remain in good standing do not need to reapply each year. Families placed on the waitlist will be able to update a previous application instead of completing a new one.

Students with disabilities may receive priority acceptance based on income. Families can provide a physician’s letter or documentation of federal disability benefits. To access up to 30,000 dollars in special education funding, students must complete a special education evaluation and receive an individualized education program, or IEP.

If demand exceeds available funding, applications will be reviewed in this order:
• Students with disabilities in households at or below 500 percent of the federal poverty line.
• Students in families at or below 200 percent of the poverty line.
• Students in families between 200 and 500 percent.
• Students above 500 percent of the poverty line, limited to 20 percent of total funding.

Private schools do not have to participate. Those that do must be nationally accredited, in operation for at least two years and administering a nationally norm referenced exam. Schools operating in other states may qualify as long as they have a Texas campus when they apply.

Private preschool students will be eligible for the standard 10,300 dollar amount if they meet Texas’ rules for free pre K. Students must be ages three to five and meet qualifying criteria such as limited English proficiency or eligibility for free or reduced meals.

With rules now in place, families have clearer guidance as they prepare for the program’s rollout next year.