Texas ESAs Are (Almost) Here: What Families Need to Know About Education Freedom Accounts

Updated December 2025

After years of debate, Texas has officially finalized the rules for its statewide education savings account (ESA) program, now called Texas Education Freedom Accounts (TEFA). The program was created by the Texas Legislature in 2025 through Senate Bill 2 and will begin funding students in the 2026–2027 school year. The program is administered by the Texas Comptroller of Public Accounts with Odyssey as the implementation partner.

For Texas families, this is a major shift. For the first time, state education dollars can follow students outside the traditional public school system to approved private schools, microschools, homeschools, and other educational providers.

What Is the Texas ESA / TEFA Program?

The Texas Education Freedom Accounts program allows eligible families to receive public education funds in an account that can be used for approved educational expenses outside of traditional public schools.

• Funding begins in the 2026–2027 school year.
• The program is administered by the Texas Comptroller of Public Accounts.
• Odyssey is the certified vendor handling account administration.
• The Legislature allocated $1 billion to launch the program.
• The program is expected to serve approximately 90,000 students statewide in its early years.
• All Texas-resident students who are eligible to attend a public school may apply, including eligible pre-K students.

How Much Funding Will Students Receive?

Based on the final rules and state guidance:

• Students attending an approved private school may receive approximately $10,500–$10,800 per year.
• Students with documented disabilities who have an IEP may receive up to $30,000 per year.
• Homeschooled students or students not enrolled in an approved private school may receive up to $2,000 per year.

What Can ESA Funds Be Used For?

Approved expenses include:

• Private school or microschool tuition
• Curriculum and textbooks
• Tutoring services
• Educational therapies
• Certain types of educational technology
• Online courses and programs
• Other education-related expenses approved by the Comptroller

The official and updated list of allowable expenses can be found on the Texas Comptroller’s Education Freedom Accounts page: https://comptroller.texas.gov/programs/education/esa/

What the Final Rules Mean for Families and Schools

The National Microschooling Center recently published a summary of the final rules in an article titled “Texas ESA Final Rules Published – What Microschools Need to Know.” You can read it here: https://microschoolingcenter.org/news-blog/texas-final

Key clarifications from the final rules include:

• Private schools must be accredited and have operated for at least two years.
• Operators with multiple campuses do not need separate approval for each location if the organization meets eligibility standards.
• Online schools must maintain a physical administrative location in Texas.
• Private schools must administer a nationally norm-referenced assessment for students in grades 3–12.
• Priority is given to students with disabilities, returning students, siblings, and students from lower-income households when applications exceed funding.
• Once accepted, families do not need to reapply each year as long as they remain eligible.

Our Perspective at ESTEAM EDU

At ESTEAM EDU, we view ESA as a tool, not a solution by itself. Funding is helpful, but it does not replace the importance of culture, instructional quality, child-centered learning, and strong relationships.

Families should approach ESA by first asking what environment will best support their child’s growth. Funding should support that choice, not drive it.

Through ESTEAM EDU, families can pursue learning through three connected pathways:

• ESTEAM Academy in Round Rock, Texas (full-time microschool education)
• Apollo Academy in Tampa, Florida (learner-driven microschool education)
• ESTEAM Learning Labs (project-based enrichment, classes, and summer programs)

ESA may increase access to these kinds of environments for many families. As the program evolves, we will share updates on how families may be able to use ESA funding with our programs.

What Texas Parents Can Do Now

1. Visit the Texas Comptroller website regularly for updates.
2. Read the National Microschooling Center article for provider-specific insight.
3. Clarify your family’s learning priorities.
4. Begin conversations with potential schools and programs now.
5. Track priority rules if your child may qualify based on disability or income.

Over the next posts in this series, we will go deeper into how ESA interacts with microschools, what families with special education needs should know, and how to evaluate programs that claim to accept ESA funding.