Thousands of students who apply for Texas’ education savings accounts will likely not be accepted into the first year of the program, application data from the state comptroller’s office shows.
At a glance
Over 101,000 students had applied for Texas Education Freedom Accounts as of Feb. 15, eleven days after applications opened, Acting Comptroller Kelly Hancock announced Feb. 16.
Families can apply through 11:59 p.m. March 17, at which point Odyssey, the New York-based company administering the program, will begin reviewing and approving applications, Community Impact previously reported.
Program funding is capped at $1 billion for the 2026-27 school year, meaning between 90,000 and 100,000 students will likely be accepted. Private school students will receive $10,474 for tuition and related expenses, while homeschool students are eligible for $2,000, and students with disabilities can receive up to $30,000, depending on their individual needs. Program funds can also be spent on tutoring, therapies and other approved services.
With demand expected to outpace available funding, applications will be prioritized through a need- and income-based lottery system. The comptroller’s office noted in a Feb. 16 news release that “the timing of a family’s application has no bearing on their position in the lottery.”
The size of the program’s waitlist could shape how much state lawmakers choose to spend on education savings accounts when they return to the Capitol in 2027. The nonpartisan Texas Legislative Budget Board previously projected that due to demand, the program would grow to $3.3 billion by 2028 and $4.8 billion by 2030.
Zooming in
Over 70% of program applicants were from low- or middle-income households, according to data from the comptroller’s office. Under Senate Bill 2, the 2025 law that created the program:
- “Low-income” is defined as families with annual household incomes at or below 200% of the federal poverty line, or about $66,000 for a family of four.
- “Middle-income” is defined as families with incomes at or below 500% of the federal poverty line, or about $165,000 for a family of four.
The lottery system is designed to give first priority to students with disabilities whose annual household incomes are at or below 500% of the federal poverty line. Those students made up about 10% of the first 101,000 applications, data shows.
Families in the second priority tier—with incomes at or below 200% of the federal poverty line—comprised about 29% of applications. About 32% of applicants were in the third tier, meaning their household income is between 200%-500% of the federal poverty line.
Another 29% of applicants had incomes above 500% of the federal poverty line, according to the data. Under SB 2, families in this priority tier may not receive more than 20% of program funding.
If a child is accepted into the program, their eligible siblings who apply during the same application period will be automatically accepted, according to the comptroller’s office.
As of Feb. 15, 80% of students who applied for the program indicated they would attend a private school during the 2026-27 school year; 20% indicated they would be homeschooled or enroll in an alternate education option, such as a microschool.
The program offers $2,000 to homeschooled students; $10,474 for private school tuition and related expenses; and up to $30,000 for students with disabilities. To qualify for additional disability-related funding, families must submit an Individualized Education Program, or IEP, that was completed by their local public school district within the past three years.
Families may also submit older IEPs, IEPs from another state or a disability certification form signed by a doctor, the comptroller’s office said. This allows students to be prioritized for acceptance into the program; however, an up-to-date IEP must be submitted for families to access the funds next school year, Community Impact previously reported.
Something to note
Families are required to submit separate applications to their chosen private schools. As of press time, nearly 2,000 private schools and prekindergarten providers—the majority of which are located in and around Texas’ largest cities—had been approved to accept education savings accounts, per a map on the program website.
Under state law, any student who is a U.S. citizen, resides in Texas and is eligible to attend a Texas public school, open-enrollment charter school or pre-K program can apply for the program.
More details
The $1 billion program is aimed at expanding educational options for families who may not want to send their children to a public school. During last year’s legislative session, some opponents of the program expressed concerns that it would unfairly benefit students already enrolled in private schools and divert funding from public school districts facing financial challenges, Community Impact reported.
“I have a message to the working family communities in Texas: vouchers are a scam intended to benefit rich people,” Rep. Ana-María Rodríguez Ramos, D-Richardson, said on the Texas House floor in April. “These private schools are not required to accept your children. You give up the rights you had in public schools. The full cost of tuition, transportation and textbooks will almost never be covered fully by the voucher.”
During the 2023-24 school year, the average cost of Texas private school tuition was $10,965 for kindergarten through eighth-grade students and $14,986 for high school students, according to the Texas Private Schools Association.
On Feb. 16, state leaders celebrated the influx of applications as “the largest launch of a new school choice program in the nation’s history.” Texas is one of at least 30 states with a program that funnels public funds into private schools, according to EdWeek, an education news organization.
“Through this program, families will receive funds to send their children to a school that is the best fit for them,” Gov. Greg Abbott said in a statement. “Texas families are now more in control of their child’s academic success, regardless of their location or income.”