What to know before applying for Texas’ education savings accounts next year

The Texas comptroller’s office has released the rules for the state’s new education savings account program, which will open to families in February. Called Texas Education Freedom Accounts, the program was approved earlier this year and will roll out ahead of the 2026 27 school year. ESAs will provide state funds to help families pay for private school tuition or homeschool expenses.

Accredited private schools and education vendors who already take part in the Parent Directed Special Education Services program may apply to become ESA providers starting Dec. 9. Other vendors will follow soon after. Families can begin applying on Feb. 4. Odyssey, a company that manages similar programs in five other states, is building the online application system.

Most approved families will receive about 10,300 dollars per student. Funds may be used for private pre K through grade 12 tuition, textbooks, tutoring, transportation and therapy services. Homeschooled students can receive up to 2,000 dollars each year. Students with disabilities may receive as much as 30,000 dollars annually based on individual needs.

Once accepted, students will not need to reapply each year as long as they stay in good standing. Families on a waitlist can update a prior application rather than start a new one.

Students with disabilities may receive priority based on family income. Families can submit doctor documentation or proof of disability benefits to be considered for that priority group. To qualify for the full 30,000 dollars in special education funding, a student must complete a special education evaluation and receive an individualized education program, or IEP.

If applications exceed available funding, state law sets the order of priority:
• Students with disabilities in households earning up to 500 percent of the federal poverty line.
• Students in families earning up to 200 percent of the poverty line.
• Students in families between 200 and 500 percent.
• Families above 500 percent, limited to 20 percent of total funding.

Private schools do not have to participate in the ESA program. Those that choose to join must be nationally accredited and in operation for at least two years, which can include years spent operating in another state. Schools must also administer a nationally norm referenced exam and have a Texas location at the time they apply.

Children in private preschools will receive the same 10,300 dollar funding amount as other private school students. To qualify, they must be ages three to five and meet Texas’ eligibility criteria for free pre K.

As families prepare for the program’s launch, the new rules offer a clearer picture of how ESAs will work and who will qualify when applications open.