TEFA at a glance
Texas Education Freedom Accounts (TEFA) were created by Senate Bill 2 in 2025 with $1 billion in funding. The Texas Comptroller runs the program, and Odyssey handles the parent portal, marketplace and customer support. Year one is 2026-27.
| 2026-27 |
|---|
| Private school award | $10,474 |
| Private school with an IEP | Up to $30,000 (most get less) |
| Homeschool and other | $2,000 |
| Income limit | None to apply; income sets priority |
| Application window | Feb 4 - Mar 31, 2026 (closed) |
| Applications | Over 274,000 |
| Students funded | More than 100,000 after waitlist rounds |
| 2027-28 | Dates not announced; interest list open |
Who qualifies for TEFA?
Almost every Texas child can apply. The child must be a U.S. citizen or lawfully present and eligible to attend a Texas public school or public pre-K. A parent or legal guardian must live in Texas. Children of active-duty military count.
Pre-K is the exception that tripped up many families. A pre-K applicant must meet the free public pre-K rules: the child turns 3 by September 1, and fits a category such as income below 185% of the federal poverty level (FPL), limited English, homelessness, a military parent or foster care. Not meeting those rules was the top reason for ineligibility in year one.
TEFA priority tiers and the lottery
There is no income cap, but demand far outran funding, so income decided who got in. For 2026-27 the order was:
- Tier 1: children with a disability in households at or below 500% FPL
- Tier 2: households at or below 200% FPL
- Tier 3: households between 200% and 500% FPL
- Tier 4: households at or above 500% FPL, with preference for students who spent 90% of the prior year in public school; this tier is capped at 20% of funds
The Comptroller's May 2026 lottery update shows how it played out. All 28,233 Tier 1 students and 16,520 of their siblings were funded. Then 51,181 Tier 2 students were awarded in lottery order until money ran out. More than 152,000 students went to the waitlist, including 65,368 in Tier 3 and 66,951 in Tier 4. Later rounds released roughly 15,000 and 4,500 more awards to Tier 3 students, bringing participation above 100,000.
From year two, the order changes: siblings of current participants come first, then new applicants, then former participants who left for public or charter school. If one child is accepted, an eligible sibling who applies in the same window is accepted too.
How much is TEFA?
- Private school: $10,474 for 2026-27, set at 85% of the statewide average per-student funding.
- Private school with an IEP: up to $30,000. The amount matches what your home district would get for the IEP services, based on your district and the IEP's instructional setting code. The IEP must be current (2023-24 or later) and on file with TEA.
- Homeschool and other students: $2,000, even for students with disabilities.
Private school awards are paid 25% on July 1 (or mid-August if the school confirmed late), 25% on October 1 and 50% on February 1. Homeschool awards arrive as one $2,000 deposit. Waitlist awards accepted late are prorated: 75% if you confirm by September 15 and 50% by January 15.
TEFA application: how it worked and how to prepare for 2027-28
The Comptroller has not announced 2027-28 dates as of October 2026. Based on year one, here is how to be ready:
- Join the interest list at the TEFA site so you hear when the window opens.
- Have your Form 1040 ready. Only a 2024 or 2025 federal return was accepted for income. Pay stubs and W-2s were not.
- Prove lawful presence and residency. If your ID or Social Security number does not verify it, have a birth certificate or naturalization document and a utility bill, lease or voter card.
- Get any IEP on file with TEA before the window closes if you want the higher award.
- Apply early in the Odyssey portal with every document attached. The program says requests to add missing information later are unlikely to be approved.
- Opt in after an award. Name a participating private school or choose homeschool/other by the deadline, and make sure the school confirms enrollment.
Families who were denied can appeal within 30 days through help.tx@withodyssey.com. Appeals are meant to fix processing errors, and decisions are final.
What can TEFA funds pay for?
TEFA money belongs to the student, not the school, and is spent in the Odyssey marketplace on approved providers. Allowed categories include:
- private school tuition, fees and required uniforms
- textbooks, curriculum and other instructional materials
- online courses and programs, including out-of-state providers that apply and are approved
- private tutoring and academic assessments
- educational therapies not covered by Medicaid or insurance
- computers and software, capped at 10% of the year's deposits
- transportation to approved providers and approved career and technical programs
For a homeschooler, $2,000 goes furthest on core curriculum and a little targeted help. A full-year program like Time4Learning or The Good and the Beautiful, a math program like Beast Academy, or a reading program like All About Reading are typical curriculum purchases. For a private school student with an IEP, tutoring and therapy providers such as Lindamood-Bell may fit. Each provider must be approved in the TEFA marketplace, so check before you buy. Browse homeschool curriculum, tutoring and programs for learning differences, and save options to your Edulist wishlist so your plan is ready when funds land.
Tutors and teachers
Anyone paid with TEFA to teach must meet the Comptroller's educator credential policy, published July 7, 2026. That means a teaching license or Texas district teaching permit, a relevant bachelor's or graduate degree, a recognized certification (such as Montessori or Orton-Gillingham), or current or past work at an accredited school or college. Tutors must pass a fingerprint background check. Funds cannot pay a family member.
TEFA approved schools
A private school must be in Texas, accredited by a TEPSAC- or TEA-recognized accreditor, open at least two school years, and give a nationally norm-referenced test each year to TEFA students in grades 3-12. Use the official school and provider finder to check a school.
Homeschoolers and TEFA
Homeschoolers qualify for $2,000 a year, paid in full at the start of the year. You must choose homeschool/other in the portal and buy from approved marketplace providers. A child found enrolled in a public or charter school is removed from the program. For Texas homeschool rules, see homeschooling in Texas.
Common TEFA problems
- Pre-K denials. Check the public pre-K criteria before you apply.
- Income not verified. Upload a complete Form 1040, not a W-2.
- IEP not found. The IEP must be in TEA's records, not just in a folder at home.
- Late school confirmation. If the school confirms after June 15, the first payment slips to mid-August.
- Tech overspending. Hardware and software purchases cannot exceed 10% of the year's deposits.
Federal tax credit: has Texas opted in?
Yes. Governor Greg Abbott announced Texas's intent to opt in to the federal scholarship tax credit, and Texas appears on the IRS list of participating states as of October 2026. From January 1, 2027, donors can claim up to $1,700 for gifts to listed scholarship granting organizations serving Texas students, under Treasury's proposed rules. That could mean new scholarships for families on the TEFA waitlist. Read the federal scholarship tax credit guide and the states that opted in.