In a landmark move, Texas officially joined the national school choice movement with the passage of Senate Bill 2 (SB 2) on May 3, 2025. Beginning with the 2026–27 school year, families across the state will have the power to use Education Savings Accounts (ESAs) to personalize their children’s education using state funds.

Whether you’re a parent, private school administrator, or educational entrepreneur, understanding how this new law works is critical to navigating the changing landscape of Texas education.


📜 What Is the Texas ESA Program?

At its core, the ESA program allows state funding to follow the student—not the system. Families receive public dollars in a dedicated account to spend on approved educational services outside of the traditional public school system.

Program Highlights:

  • Goes into effect: September 1, 2025
  • Funding begins: 2026–27 school year
  • Initial Budget: $1 billion (serving 80,000–100,000 students)
  • Administered by: Texas Comptroller’s Office & selected Educational Assistance Organizations (EAOs)

👨‍👩‍👧‍👦 Who Is Eligible?

All Texas K–12 students are eligible to apply—including those enrolled in:

  • Public schools
  • Private schools
  • Homeschools

Students must be:

  • U.S. citizens or lawfully admitted
  • Residents of Texas
  • Not simultaneously enrolled in a public school

If demand exceeds available funds, the state will prioritize applications in this order:

  1. Students with disabilities, income ≤500% of the Federal Poverty Level (FPL)
  2. Students in families earning ≤200% of FPL (~$64,300 for a family of four)
  3. Families earning 200–500% of FPL
  4. All other students (limited to 20% of program capacity)

💸 How Much Can Families Receive?

Student TypeAnnual ESA Amount
General private school~$10,000–$10,900
Students with disabilitiesUp to $30,000
Homeschoolers$2,000

Funds can be used for:

  • Private school tuition
  • Tutoring or therapy
  • Educational technology
  • Dual-credit courses
  • Standardized testing
  • Books and instructional materials

Unused funds may roll over year to year but expire upon graduation.


🏫 What Are the Requirements for Participating Private Schools?

To accept ESA funds, private schools must:

  1. Be accredited by a recognized body (see below)
  2. Have operated for at least two consecutive years
  3. Administer a nationally norm-referenced exam for students in grades 3–12 (not STAAR)
  4. Report results and parent satisfaction annually to the administering agency
  5. Follow applicable state/federal non-discrimination laws
  6. Maintain autonomy in admissions, hiring, curriculum, and religious instruction

✅ Recognized Accreditation Organizations

Schools must be accredited by TEA-recognized or TEPSAC-approved organizations. Accepted accreditors include:

  • Texas Private School Accreditation Commission (TEPSAC) Members
  • Southern Association of Independent Schools (SAIS)
  • National Association of Independent Schools (NAIS) (via approved agencies)
  • Cognia (formerly AdvancED)
  • Western Association of Schools and Colleges (WASC)
  • Middle States Association (MSA)
  • National Council for Private School Accreditation (NCPSA)
  • National Independent Private Schools Association (NIPSA)
  • International Association of Learner Driven Schools (IALDS)

For a full list of TEPSAC-member agencies, visit www.tepsac.org.


📝 Testing & Accountability

To maintain transparency and outcomes tracking:

  • ESA students (grades 3–12) must take a nationally norm-referenced exam (e.g., MAP, Stanford, TerraNova)
  • Scores must be reported annually (though they’re not tied to state performance ratings)
  • Homeschool students are not required to test

The state will publish aggregate reports on:

  • Academic performance
  • Parent satisfaction
  • Student demographics
  • College & career readiness

💬 The Debate: Public Good or Private Gain?

Supporters argue that school choice:

  • Empowers parents
  • Increases competition and innovation
  • Offers a lifeline to students trapped in failing schools
  • Honors the unique needs of special populations

Critics warn that:

  • Public school funding could be eroded
  • Private schools lack accountability measures required of public institutions
  • Wealthier families may disproportionately benefit
  • Rural families may lack access to alternatives

📆 What’s Next?

  • Spring 2026: ESA application window opens
  • Summer 2026: Families begin receiving funds in ESA accounts
  • Fall 2026: First ESA-funded school year begins
  • Ongoing: Schools may apply for accreditation or partner with EAOs

📣 Final Thoughts

The Texas ESA program opens a bold new chapter in educational freedom—offering families new options, but also asking communities to re-examine what equity and access mean in the 21st century.

As a parent, school leader, or policymaker, now is the time to ask:
What does empowered education look like for our children—and who decides?


👇 Ready to learn more?

Subscribe for updates, family guides, and school application tools as the ESA rollout continues across Texas.

About the Author: Nicholle Walton-Durban, Co-Founder of ESTEAM EDU, ESTEAM Academy, ESTEAM Learning Labs, Apollo Academy, and The FIRE Foundation

Nicholle Walton-Durban is a visionary leader in education and community empowerment, dedicated to redefining learning through innovative, learner-driven models. As the founder of ESTEAM Academy and the driving force behind the Foundation for Innovative and Restorative Education (FIRE), she champions the creation of transformative educational ecosystems that cultivate curiosity, resilience, and real-world success. With a passion for empowering parents, educators, and students alike, Nicholle continues to inspire bold action in shaping the future of education.

Connect with Nicholle through the following channels:📧 Email: nicholle@esteamedu.com
📞 Phone: 310.384.3391
🌐 Website: esteamedu.com
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