CHECKED 2026-10-07 · 2026-2027

Texas Education Freedom Accounts: TEFA Awards, Eligibility and Next Steps

Texas Education Freedom Accounts, known as TEFA, is a state-funded education savings account program. It gives families an education savings account funded by the state that can pay for private school tuition and other approved education expenses.

Status checked October 7, 2026: general applications for 2026–27 closed March 31, 2026. The official site offers a 2027–28 interest list; a new application calendar has not been announced in the sources checked. Tier 3 waitlist awards have already occurred. A separate November 2 deadline applies to eligible public-school-enrollment appeals, not new applications. TEFA program

How much TEFA pays

Award amounts depend on where your child is educated. For the 2026–27 school year:

Student situation	Annual award
Attends a participating private school (including pre-K and kindergarten programs)	$10,474
Student with a disability and an IEP on file with TEA, at a participating private school	Up to $30,000
Homeschooled or otherwise not enrolled in a school	$2,000

The standard private school amount is set by law at 85% of the statewide average state and local funding per public school student, as calculated by the Texas Education Agency. Expect it to be recalculated each year.

For students with disabilities, the award is based on what the local school district would receive to serve the child under their individualized education program (IEP). To get the higher amount, the IEP must be on file with TEA by the end of the application period. A separate disability certification form from a licensed professional can earn a child priority in the lottery, but not the higher funding.

What that covers. Compare your confirmed award with the school’s tuition and required fees for the same year. A maximum award is not a promise of a zero balance. Remaining funds may cover other approved expenses under program rules.

Who is eligible

A child can participate if they are a U.S. citizen or lawfully present and eligible to attend a Texas public school, open-enrollment charter school, or public pre-K program. Children of active-duty military parents are included. The parent applying must be a Texas resident.

There is no income cap for eligibility. Income determines priority when applications exceed funding, which they did by a wide margin in year one.

Pre-K has narrower rules. TEFA pre-K applicants must meet the criteria for free public pre-K: for example, being economically disadvantaged (below 185% of the federal poverty level), unable to speak and comprehend English, homeless, in foster care, or a child of an active-duty service member or a public school teacher in a district offering free pre-K. This was the most common reason applicants were found ineligible in the first cycle.

Priority tiers and the lottery

When applications exceed available funding, state law sets the order of awards. In year one, applicants were grouped into four tiers:

Tier 1: Children with a disability in households at or below 500% of the federal poverty level.
Tier 2: Children in households at or below 200% of the federal poverty level.
Tier 3: Children in the next income-priority band above 200% and below the 500% boundary; see the boundary note below.
Tier 4: The highest-income group around the 500% threshold and above; see the boundary note below. Within this group, students who attended a Texas public or charter school for at least 90% of the prior year get priority. Funding for this tier is capped at 20% of the program's appropriation.

At exactly 500% FPL: the official site’s general priority list uses “at or above” for Tier 4, while a family FAQ describes Tier 3 as below 500% and Tier 4 as above 500%. Because the published wording is inconsistent at the boundary, confirm your assigned tier with TEFA rather than using this guide as an eligibility calculator. Tier 1’s disability-and-income condition is described as at or below 500%. Official family guidance

A lottery is used when eligible applicants exceed funding. Tier 3 is no longer simply an unfunded group: the program announced another approximately 4,500 Tier 3 awards in August 2026. Your portal decision and instructions govern your own status. Tier 3 award update

Starting in year two (2027–28), a new layer sits on top of the income tiers. Applicants will be prioritized first as siblings of current participants, then new eligible applicants, then prior participants who left the program for public school. Within each group, the year-one income tiers still apply. If one child is accepted, any eligible sibling who applies in the same period is accepted too.

Current participants in good standing do not need to reapply. They only confirm that they want to continue.

How the money is paid

TEFA funds go into an account managed through Odyssey, the company the state selected to help administer the program. Families do not receive cash. You use the account to pay approved schools and vendors.

For private school students in 2026–27, funds are released in three installments:

Initial installment: 25%, with July 1 as the earliest funding date and later timing for later confirmations or waitlist awards
October 1: 25% of the award
February 1: the remaining 50%

Homeschool/other participants receive their award in one installment. Funding depends on opt-in or school enrollment confirmation. Late entry can lead to proration; the official timeline requires confirmation by September 15 for the full annual amount. Students must remain eligible and enrolled as required. Ask the school about any billing gap before paying a deposit. Funding and proration rules

Approved expenses

The primary use is tuition and fees at a participating private school. Funds can also cover approved textbooks, uniforms, transportation, tutoring, educational therapies, and other approved services and products through the program marketplace. Approved online and out-of-state programs and career and technical education programs can qualify if the provider applies and is accepted.

Which schools participate

Private schools must apply and be approved. To participate, a school must be located in Texas, be accredited by an organization recognized by the Texas Private School Accreditation Commission or another accreditor recognized by TEA, have operated for at least two school years before applying, and give participating students in grades 3 through 12 a nationally norm-referenced test each year. Schools can apply on a rolling basis. Verify a school’s current approval rather than relying on a registration count.

Use the state's finder tool at finder.educationfreedom.texas.gov to see participating schools near you. If a school you are considering is not listed, ask whether it plans to apply. Accreditation and the two-year operating requirement exclude some newer schools.

Why applications were found ineligible

About 25,500 first-cycle applicants were ruled ineligible. Beyond pre-K criteria, the common reasons were:

Income could not be verified. The program required a complete federal Form 1040 for 2024 or 2025. Pay stubs and W-2s were not accepted.
Citizenship or lawful presence could not be verified from a driver license, Real ID, or Social Security number, and the family did not upload a supporting document.
Texas residency could not be verified and no utility bill, lease, mortgage statement, or voter registration was provided.

Current appeal deadlines

Odyssey’s September 30 update lists November 2, 2026 for public-school-enrollment appeals. Eligible families see the appeal option in their account. The same notice lists earlier May and June deadlines for ineligibility, Tier 1, Tier 2 and waitlist appeals; those dates have passed. Follow the applicable notice and deadline rather than assuming every past decision can still be appealed.

Appeals generally address errors or clarification of information submitted during the application window. They are not a new application opportunity. Current appeal process

How to prepare for 2027–28

The 2027–28 application dates have not been announced. The first cycle opened in early February and ran about eight weeks. To be ready:

Join the 2027–28 interest list at educationfreedom.texas.gov to get notified when the window opens.
Prepare income records. The first cycle required a complete 2024 or 2025 Form 1040. Wait for the next cycle’s official documentation rules before assuming which return will be accepted or which poverty guidelines apply.
Review the program’s income and household-size instructions. Use them to understand priority, and ask TEFA about boundary cases or unusual circumstances.
Confirm your documents: Texas driver license or ID, your child's Social Security number or birth certificate, and proof of residency.
If your child has a disability, make sure the IEP is current and on file with TEA, or have a licensed professional complete the program's disability certification form.
Choose and apply to schools. Confirm each one participates and ask how it handles TEFA funds alongside its own financial aid.
Submit a complete application within the announced window. Leave time to resolve document problems. Earlier submission does not itself improve random lottery placement.

Stacking TEFA with other funding

School financial aid and personal savings may help with the remaining bill. Ask how the school treats TEFA in its aid calculation. The federal 529 limit is $20,000 in qualified K–12 distributions per beneficiary across plans for 2026; use only eligible, properly coordinated expenses. Texas is listed as participating in the 2027 federal scholarship tax credit, but an individual scholarship is not guaranteed and cannot yet be assumed in a family budget. See our guide to paying for private school beyond state programs for details.

Official sources and updates

Checked October 7, 2026. Program rules and application status can change. Confirm the current requirements before applying or committing to a school.

This guide provides general educational information. It does not determine admission, scholarship eligibility, an award, or an individual tax result.