Texas Education Freedom Accounts offer parents options

Catholic students participate in hands-on learning activities at a classroom worktable. Texas Education Freedom Accounts will be available to parents in the 2026-2027 school year. (Photo courtesy of Our Lady of Guadalupe Catholic School)

TEFA program to begin in 2026-2027 school year

HOUSTON — Parents in Texas will have the opportunity to apply for state funds designed to give families more choices in their child’s education. 

The Texas Education Freedom Account (TEFA) program will provide funds for private school tuition and other educational expenses for students in prekindergarten through 12th grade. 

Parents must apply for TEFA funds to receive support for the 2026-2027 school year (the application period will be announced later by TEFA organizers).

TEFA funds can be used to pay for private school tuition, homeschool curriculum, tutoring, therapies, school lunch, transportation, school uniforms, technology (limited to 10% of funds received) and more.  

Most accounts will be funded between $10,500 and $12,500 per year per student. Students with disabilities could receive up to $30,000 per year. The state of Texas has designated $1 billion in funding to assist families in these expenses. 

“We are thrilled about the opportunity the Texas Education Freedom Accounts (TEFA), formerly Education Savings Accounts, initiative presents to further our mission of forming disciples in faith and intellect, both accessible and affordable to more families in our communities,” said Mazie McCoy, Ed.D., superintendent of Catholic Schools.

All families are encouraged to apply, as funds are limited and will be awarded based on a lottery system within income categories. Priority will be given to students with disabilities and those from low-income households. 

There are four categories of prioritization for receiving funds: 

1. Students with a disability (defined by Texas Educ. Code sec. 29.003) whose family income is at or below 500% of the Federal Poverty Guidelines (FPG). 
2. Children whose family income is at or below 200% of the FPG. 
3. Children whose family income is between 201% and 500% of the FPG. 
4. Everyone else, depending upon available funds. Students who move from public schools will be prioritized over currently enrolled private school students in this category only. 

TEFA funds will be made available to families through transfers on the first day of months of July, October, and the remainder before April. Any funds remaining in a participating child’s account will be carried over to future years. Funds in the account are not considered taxable income unless otherwise defined by federal or another state’s law. Should a child enroll in a private school program after the beginning of the school year, the amounts transferred are prorated. 

Parents whose children have been awarded a TEFA must agree to spend the funds received only on eligible purchases and cannot resell items. Parents also agree to share the child’s assessment results with the program administrator and notify the program administrator within 30 days of their child enrolling in public school, graduating from high school, or otherwise becoming ineligible to enroll in public school.

To access TEFA information on the Archdiocese of Galveston-Houston Catholic Schools website, or to sign up for weekly updates on TEFA, visit ChooseCatholicSchools.org/tefa.