Texas distributed the first payments of its new education savings accounts on July 1, 2026, with nearly 73,000 students receiving initial funding through the Texas Education Freedom Accounts (TEFA) program, marking the nation’s largest year-one school choice initiative.
Acting Texas Comptroller Kelly Hancock announced the milestone, stating that the program represents a significant expansion of educational options for Texas families. Homeschool and other eligible nonpublic students received their full $2,000 annual award on July 1, while private school students received the first 25 percent of their total award, with additional installments scheduled for October 1 and February 1, 2027, provided they remain enrolled in a participating private school.
The Texas Legislature approved Senate Bill 2 in 2025, creating the program with an initial $1 billion in funding for the 2026-27 school year. The program allows eligible families to use state-provided funds for private school tuition, tutoring, curriculum, and other approved educational expenses. Over 102,000 students have been awarded accounts, though the program received more than 250,000 applications, leaving roughly 145,000 eligible students on a waitlist.
The TEFA Marketplace opened the same day, providing families with a secure online platform to purchase approved products and services from participating schools and vendors. On its launch day, the marketplace featured more than 54,000 approved educational products and services from nearly 2,400 vendors, including textbooks, technology products, and assistive tools for students with disabilities.
School voucher programs have surged nationwide as part of a broader education policy shift. As of April 2026, twenty-one states had enacted education savings account programs, and twenty states had implemented voucher programs, according to an analysis by Ballotpedia. In 2026, participation in school choice continued to increase, especially among education savings accounts and voucher programs, with the EdChoice Participation Rankings noting that Florida claimed the top spot for the second consecutive year, followed by strong participation in North Carolina, Ohio, Arizona, Indiana, and Arkansas.
Texas’s program comes as federal school choice initiatives also expand. Congress passed the first national school voucher program in October 2025, set to launch in 2027, which supporters describe as a major expansion of parental choice. Additionally, 27 states are awaiting rules defining a formal process to join a federal school choice program expected to launch January 1, 2027.
The Texas program includes multiple safeguards designed to protect taxpayer funds. The Texas Comptroller of Public Accounts’ internal team, an independent firm, and the State Auditor’s Office will audit the program. Families can use TEFA funds only to purchase approved products and services through the secure TEFA Marketplace, and schools, parents, and vendors will not be charged fees to list, buy, or sell through the platform.
Early data on the program shows that demand significantly exceeded available funding. More than four in five applicants came from households earning less than $66,000 per year, according to program data. A Texas Legislature analysis projected that about 98,000 students would leave public schools for private schools by fiscal year 2030 as the program matures, raising questions about the long-term impact on public school budgets and enrollment.
Sources
- Texas Comptroller of Public Accounts — announced nearly 73,000 TEFA accounts receiving initial funding July 1, 2026; described the program as the nation’s largest year-one school choice program; detailed payment schedules and marketplace features
- Ballotpedia — reported that as of April 30, 2026, twenty-one states had enacted ESA programs and twenty states had implemented voucher programs
- EdChoice — reported 2026 participation rankings with Florida at #1 for the second consecutive year, and noted increased participation in school choice programs
- Texas Tribune — reported that more than 100,000 students have been awarded accounts and over 270,000 students applied to the program
- USA Today — reported that 85,344 students have been funded in the first year of the program, with more than 250,000 applications received
- Harvard Graduate School of Education — reported that Congress passed the first national school voucher program in October 2025, set to launch in 2027
- K12 Dive — reported that 27 states are awaiting rules for a federal school choice program set to launch January 1, 2027
- Government Technology — reported that a Texas Legislature analysis projected about 98,000 students would leave public schools by fiscal year 2030
