What Parents Need to Know About the New Texas Education Savings Account

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Educational opportunities in the Lone Star State are growing!

Prior to May 2025, parents in Texas did not offer any state-run scholarships to help parents afford private school tuition or homeschool expenses. This meant that many families were unable to access one of the over 2,000 private schools in the state or afford the costs associated with homeschooling. Through years of hard work and dedication, parents and advocates shared their experiences and highlighted the need for more flexible education funding to afford their school of choice  – and Texas listened.

Texas is taking a bold step toward expanding education options by establishing a universal Education Savings Account (ESA) program, providing families in the Lone Star State with state funds to help cover a range of educational expenses, making private schooling, homeschooling, and other customized learning options more accessible.

What is the Texas ESA program?

The Texas Education Savings Account (ESA) program will be the first-ever private school choice initiative in Texas, providing tens of thousands of families with funds for K-12 education starting in the 2026-2027 school year! Unlike other forms of private school choice programs, ESAs provide greater flexibility to customize education. Funds from ESAs can be used for a wide range of education expenses like private school tuition, tutoring, transportation, and more! 

Under this new expansive program, Texas’s ESA program would provide different levels of education funding based on the education setting, including:

  • About $10,000 per year for students attending accredited private schools
  • Up to $30,000 per year for students with disabilities attending accredited private schools
  • Up to $2,000 per year for homeschooled students to use toward educational expenses

These funds would be distributed in equal payments throughout the year in an online account established by the Texas Comptroller.

Families using their ESAs have a wide range of options, including private schools, online programs, and homeschool opportunities.

Who is eligible to apply for the Texas ESA program?

Texas’s ESA program will be open to all PreK-12 students in the state including students currently enrolled in a public school, pre-k students enrolled in a public program, students currently enrolled in a private school, and homeschooled students. Eligibility to apply to the program is universal, but there is a limit on the overall funding for the program for the initial two year period.

If the demand for the program exceeds available funding, students will be prioritized if they are eligible for an individualized learning plan (IEP), then by family income level, with a preference to families at or below 200% of the federal poverty level. 

If there are enough funds to award every student who applies an ESA, there is still a limit to how many children from households making at or above 500% of the federal poverty line can participate in the program. ESAs for this group of students cannot make up more than 20% of the program’s expenses. Additionally, in this group of students from higher-earning households, students who have attended a public school the prior school year will be prioritized.

It’s good to note that to participate in this program, children must be U.S. citizens or lawfully admitted into the United States. This means that parents may need to provide legal documentation that confirms their children’s residency status. 

Not sure if an Education Savings Account is the right program for you? Check out the Texas State Roadmap to learn more about all the options available to you.

How will parents apply and access funds?

The Texas Comptroller is the entity responsible for administering this program. They are authorized by the law to engage up to five “​​certified educational assistance organizations” that will raise awareness about the program and assist families with applying for, and managing, their education savings accounts. 

As the program gets started, the process of how to apply and who to ask for support will be set up soon. Our partners at Families Empowered are working hard to guide parents through this process – you can signup to receive updates & information on their website!

Are homeschoolers eligible to participate?

Families who are currently homeschooling have the option to participate in the ESA program while continuing to educate their children at home. Although their daily homeschooling experience may not differ significantly from traditional methods, they will have to take a nationally norm referenced test and agree to have those results shared with the certified educational assistance provider that helped them through the application process for the program. However, those scores will remain confidential. Participation in the program is not required for any homeschooler; families can choose whether or not to take part.

Students participating in the ESA program must take a standardized assessment, a nationally norm-referenced achievement test, or a recognized aptitude assessment, regardless of whether they choose private school or homeschool. Students with special needs are exempt from taking such exams.

What are the eligible educational expenses for the Texas ESA program?

The Education Savings Account (ESA) program would allocate funding to eligible students to use for approved education-related expenses, including:

  • Tuition and fees for a nonpublic school, online learning programs, or a program that trains students to receive an industry-based credential
  • Textbooks, instructional materials, and uniforms
  • Unbundled classes or educational services from traditional public and charter schools
  • Tests and academic assessments
  • Private tutoring by a qualified tutor*
  • Educational therapies or services from a qualified provider*
  • Technology including computer hardware or software (with a cap of 10% of ESA funds going to this per student);
  • Transportation; and
  • Dual enrollment tuition and fees

Homeschooling and hybrid learning families can use the Texas ESA program for their home-based curriculum and materials, as well as for part-time enrollment in private or public schools. 

*The Comptroller’s Office will oversee approving vendors and reviewing qualifications, which will include things like criminal background checks, teacher licensure, or prior teaching experience.

Are there any special requirements for the schools accepting students via this program?

Private schools accepting tuition funding from families participating in this program must be accredited and give an annual exam that checks students’ learning progress (they’ll be able to pick from a group of several test options). 

Public schools, whether district or charter, can choose to offer classes that families can take using these funds, but they have to be offered in an unbundled way that doesn’t count the ESA student as a full-time student at the school.

Curious about schools near you that may accept these scholarships? Use our Schools Near Me tool to get a list of all the schools in your area.

When does Texas’s Education Savings Account program begin?

Texas’s Education Savings Account Program will be available for the 2026-2027 school year. 

The state comptroller will set up a website to house information and resources for families looking to participate in the program. More information will become available as the program is set up. Stay tuned for updates and they become available!

In the meantime, parents should…

The new scholarship program in Texas is currently being developed, so there may be updates before its official launch. To prepare for any upcoming ESA program, parents should keep a few important considerations in mind.

Before starting any application, parents should: 

Review the list of participating schools and providers to determine if they can meet your children’s needs. Ask about the availability of slots at these schools and providers. This list will be made available shortly before the application window opens.

Estimate your child’s future education expenses by considering factors such as tuition, fees, books, supplies, and other related costs.

Stay informed about any announcements or updates regarding the launch of the state program. You can do this by subscribing to newsletters, following relevant government agencies or organizations on social media, and regularly checking official websites for updates. Families Empowered is a member of the Navigate School Choice Network and an excellent resource for families to contact for more information.

Gather the necessary documentation for you and your children, including proof of residency, identification documents, and social security numbers.

If you’re interested in utilizing the ESA program to choose a new school, but aren’t sure how to go about the process, check out our Tips for Choosing the Right School for Your Child.

Other school choice options in Texas

Texas has a wide range of school choice options for families in the state. In addition to private school choice options, Texas families have a range of educational choices, including traditional public schools, public charter schools, public magnet schools, online learning, homeschooling, and microschooling and mix-and-match learning.

Where to learn more

While Texas’s program shares similarities and flexibility with other states, it also has its own unique features! Other states that enacted or expanded choice programs in 2025 include Idaho, North Dakota, and Tennessee. 

If you’d like to learn more about Texas’s new ESA program, stay up to date with official announcements from the Texas Comptroller’s office, and get connected to a local school choice navigator like Families Empowered for more updates.