TEFA Renewal & Continuation Guide

How Continuation Works

The Comptroller's official TEFA FAQ is direct about it: "Do families need to reapply every year? No. Participants in good standing stay in the program automatically. Families only need to confirm they want to continue."

The mechanics live in the adopted Comptroller rules. Under 34 TAC §16.403(d), a participating parent "is not required to reapply, but must be in good standing and provide notice in a comptroller-approved format" to their certified educational assistance organization (CEAO) during the application period if they want their child to continue the following year. Children whose parents give that notice "shall be admitted to the program for the following program year prior to the approval" of new applications, to the extent positions are available.

That's stronger than a priority tier — it's a seat ahead of the entire new-applicant lottery. But it hinges on two things: staying in good standing, and actually submitting the continuation notice. The exact format and deadline for the 2027-28 confirmation haven't been published yet, so watch for official announcements.

The notice also protects your unspent money. Under 34 TAC §16.407(i), funds remaining at year-end roll over only if the child remains eligible and the parent has provided the continuation notice. The family-facing version on the official site: funds remaining at the end of the school year roll over as long as the child remains in the TEFA program. Skip the notice, and you risk forfeiting both the rollover and your child's automatic seat.

The 2026-27 Payment Schedule

Per the Comptroller's Funding Timelines and Installments announcement (June 4, 2026), private school students receive funds in three installments: 25% on July 1, 2026 (for students whose schools confirmed enrollment by June 15), 25% on October 1, 2026, and the final 50% on February 1, 2027. Students must remain enrolled in a participating private school to receive additional installments.

Homeschool and "other" students receive their full $2,000 in a single installment — July 1 if they opted in by June 15, or mid-August if they opted in by July 31.

Families awarded off the waitlist mid-year should note: funding may be prorated depending on when enrollment is confirmed, and students needed confirmed enrollment by September 15 to receive their full award amount. If your award comes through late, check the official timeline page for exactly how proration applies to your confirmation date.

Staying in Good Standing (and How Removal Works)

"Good standing" under 34 TAC §16.401 means complying with all program requirements and applicable law. In practice: spend only on approved expenses through the approved payment system, no cash withdrawals or reimbursements, no reselling purchased items, cooperate with audits, submit required assessment results (grades 3–12 in participating private schools), and notify the program in writing within 30 days if your child enrolls in a public or charter school.

If something goes wrong, 34 TAC §16.405 spells out the process. Any noncompliance suspends the account — no purchases from the date of suspension. You get written notice by mail and email stating the grounds and the corrective action, and 30 calendar days to respond or cure. From there the Comptroller can fully reinstate the account, conditionally reinstate it, or permanently close it — and permanent closure (removal from the program) is the one decision you can appeal. Funds spent on non-allowed expenses or for an ineligible child can be recovered by the state.

Separately, enrolling in a Texas public or charter school ends eligibility outright: the account is closed, remaining money returns to the Comptroller, and the parent has that 30-day duty to notify the program. Homeschool students found to be enrolled in a public or charter school during the year are removed from the program.

New for 2026-27: The Educator Credential Policy (July 7, 2026)

If you pay any tutor or teacher with TEFA funds, the Comptroller's Educator Credential Policy now requires the lead educator to hold a relevant license or accreditation from a state, regional, or national certification organization. Qualifying examples include an active teaching license (from Texas or another state), a Texas school-district teaching permit, certifications from accreditation bodies, method certifications such as the Orton-Gillingham method, or a bachelor's, graduate, or professional degree in a subject related to the instruction provided.

Here's the part many families miss: verification is on you. The policy makes parents responsible for ensuring anyone paid with program funds to educate their child has the knowledge, skills, and professional competence to do so — Comptroller approval of a provider is not an endorsement. Before hiring any tutor with TEFA funds, ask what license, degree, or certification they hold and confirm it matches what they'll be teaching.

For what it's worth, this is a standard we welcome: our own tutors are certified in special education, and we're happy to walk you through credentials for the tutor matched to your child.

Still on the 2026-27 Waitlist?

Awards have continued rolling out as funding frees up from opt-outs, homeschool selections, and resolved appeals. More than 100,000 students had been awarded accounts by June 10, 2026, approaching 110,000 after the June 23 round added 5,499 more waitlisted students — all in Tier 2 (household income at or below 200% of the federal poverty level).

If your child is waitlisted, you don't need to do anything to hold your spot this year: families receive updates by email, by text message, and through the program portal if their status changes.

Looking Ahead: 2027-28

No 2027-28 application window, renewal-confirmation window, or award dates have been announced. The only official step available today is the 2027-28 TEFA Interest List, which signs you up for updates about the next application period. Program capacity for 2027-28 will also depend on the appropriation the Legislature makes when it convenes in January 2027.

What has been published is the priority order for new applicants. Per the official FAQ: "After year 1, applicants will first be prioritized in the following order, and then will be prioritized within each group in the order stated in the year 1 prioritization: 1. Siblings of participating children. 2. New eligible program applicants. 3. Prior program participants who ceased program participation due to enrollment in a public or charter school."

Notice what that order means: families who leave TEFA for public school go to the back of the line — behind siblings and behind brand-new applicants — if they want back in. If you're weighing a mid-year switch, weigh that too.

TEFA Renewal Frequently Asked Questions

Do we have to reapply for 2027-28 if we already have a TEFA award?

No. Per the official FAQ, participants in good standing stay in the program automatically — families only need to confirm they want to continue. The Comptroller's rule (34 TAC §16.403(d)) requires a notice of intent to continue, in a comptroller-approved format, during the application period.

Is there a renewal deadline?

The continuation notice must be given during the application period for 2027-28, but that application period has not been announced yet. Sign up for the official 2027-28 interest list at educationfreedom.texas.gov so you're notified when dates are published.

Will continuing students lose their seat to new applicants?

No — continuing children in good standing whose parents give the continuation notice are admitted for the following year before any new applications are approved, to the extent positions are available. Overall capacity depends on the Legislature's next appropriation.

Do unused funds roll over to next year?

Yes. Funds remaining at the end of the school year roll over as long as the child remains in the TEFA program — the rule conditions rollover on continued eligibility and the parent's continuation notice (34 TAC §16.407(i)).

Does our waitlist spot carry over to 2027-28?

Nothing official says it does. The rules let a waitlisted child update or supplement their existing application rather than starting over for a new application period, but each period's admissions are ordered by that period's own lottery and priority groups.

What happens if we enroll our child in public school mid-year?

The child becomes ineligible, you must notify the program within 30 days and stop spending, and the account is closed with remaining money returned to the state. Re-entering later means applying again in the lowest year-2 priority group — behind siblings and new applicants.