Texas Education Freedom Account (TEFA): Complete Guide

What is TEFA?

TEFA (Texas Education Freedom Account) is Texas's first-ever Education Savings Account program, created by Senate Bill 2 and signed into law in May 2025. The program places state education funds into parent-controlled accounts that can be used for a wide range of educational expenses.

Unlike traditional school vouchers that pay schools directly, TEFA gives parents flexibility to customize their child's education by spending on multiple services — including private tutoring, educational therapy, curriculum materials, and more.

Funding Amounts

Who is Eligible?

Nearly all Texas students in Pre-K through 12th grade are eligible to apply, including:

• Students currently in public school
• Students already in private school
• Homeschooled students
• Pre-K students enrolled in public programs

Requirements: Students must be U.S. citizens or lawful residents eligible to attend Texas public schools.

Priority Groups

If demand exceeds available funding, students are prioritized in this order:

1. Students with disabilities from families earning up to 500% of federal poverty level
2. Low-income students (up to 200% FPL)
3. Moderate-income students (200-500% FPL)
4. Higher-income households (limited to 20% of total program funds)

★ Special needs families get top priority. If your child has an IEP, autism diagnosis, or other documented disability, they're in the first priority group for funding.

Program Timeline

How TEFA Works

1. Apply to the program (applications for 2026-27 are closed; a 2027-28 window has not been announced — join the interest list at educationfreedom.texas.gov)
2. Receive your award notification via email
3. Access your Odyssey account — the online platform where funds are managed
4. Select approved vendors — schools, tutors, therapists, curriculum providers
5. Funds are paid directly to vendors — you never handle the money

Approved Expenses

TEFA funds can be used for:

• Private school tuition and fees
• Private tutoring by qualified tutors
• Educational therapies (speech, OT, etc.)
• Textbooks and instructional materials
• Online learning programs
• Technology (up to 10% of funds)
• Transportation to educational providers
• Dual enrollment tuition
• Standardized testing and assessments

Who Administers TEFA?

The Texas Comptroller of Public Accounts oversees the TEFA program through the official Texas Education Freedom Accounts site. They've partnered with Certified Educational Assistance Organizations (CEAOs) to help families apply, manage accounts, and connect with approved vendors.

The Odyssey platform is used to manage accounts, select vendors, and process payments.

Using TEFA for Special Needs Tutoring

TEFA is especially valuable for families of students with disabilities. With up to $30,000 per year in funding, you can access intensive, individualized tutoring that would otherwise be unaffordable.

We're a TEFA-approved vendor specializing in special needs tutoring. We work with students with autism, dyslexia, ADHD, and other learning differences — and we bill the Comptroller directly through Odyssey, so there's no out-of-pocket cost for you.

TEFA Frequently Asked Questions

How much money does TEFA provide?

TEFA provides $10,474 per year for most students enrolled at participating private schools, up to $30,000 per year for students with an IEP on file with the Texas Education Agency (the amount is based on the services in the IEP), and $2,000 per year for homeschooled students.

When did TEFA start?

TEFA was created by Senate Bill 2, signed into law in May 2025. The first funds became available to families on July 1, 2026, for the 2026-27 school year.

Can TEFA funds pay for tutoring?

Yes. Private tutoring by qualified tutors is an explicitly approved TEFA expense, including special needs tutoring for autism, dyslexia, ADHD, and other learning differences. The vendor must be registered and listed in the Odyssey directory.

Do parents ever handle the money?

No. TEFA is vendor-direct: the vendor invoices through the Odyssey platform, the parent approves the request, and the Texas Comptroller pays the vendor. There are no reimbursements and no cash withdrawals.

Do unused funds expire at the end of the year?

No. Funds roll over from year to year as long as the student remains enrolled in the program.