TEFA Award Amounts: How Much Each Texas Family Actually Receives

In 2026-27, the standard TEFA award for an approved private school is $10,474 per child. That figure covers Novatio's $8,500 annual tuition in full, with funds left over for other approved educational expenses. But the award isn't guaranteed, and how much a family receives depends on disability status, household income, and whether funding is still available when their application is processed.

The Texas Education Freedom Act (TEFA) is a state education savings account program created by Senate Bill 2 in 2025 and administered by the Texas Comptroller of Public Accounts. It provides state funds that families can use toward tuition at an accredited private school. For the 2026-27 school year, the program launched with $1 billion in funding. Over 274,000 families applied in the first cycle, and just over 100,000 received awards, which means roughly two in three applicants did not. Understanding how awards are set and who gets priority is the most important thing a Texas family can do before counting on TEFA to cover tuition.

How much is the standard TEFA award for a private school?

The standard TEFA award for a student attending an approved private school is $10,474 for the 2026-27 school year, a figure set by the Texas Education Agency. This is the amount most families who receive an award will see. It's enough to cover Novatio's $8,500 tuition in full, with approximately $1,974 remaining in the account for other qualifying educational expenses.

Families using TEFA for homeschooling or other settings outside an approved private school receive a different amount. The maximum for those categories is $2,000 per year, which is a separate figure from the private school award.

Do students with an IEP receive a larger award?

A student with a current IEP on file may qualify for an award above the standard $10,474. Senate Bill 2 sets a cap of $30,000 for students with disabilities, but most families with an IEP receive an amount between the standard award and that cap, based on what the IEP documents. The specific amount reflects the student's documented needs rather than a fixed disability category.

Disability status alone doesn't place a student in the highest priority tier. Income also has to meet the threshold. A family whose child has an IEP but whose income is above 500% of the federal poverty level will be placed in a lower tier than a lower-income family with the same documentation. That distinction matters when funding is limited and a lottery is used to allocate remaining awards.

How do the four priority tiers work?

TEFA uses four tiers to determine who receives an award when applications exceed available funding, which happened in the first cycle.

Tier	Who qualifies
Tier 1	Student has a disability AND household income is at or below 500% FPL
Tier 2	Household income is at or below 200% FPL
Tier 3	Household income is between 200% and 500% FPL
Tier 4	Household income is above 500% FPL; extra priority given to students enrolled in public school for at least 90% of the 2024-25 school year

For context, 200% of the federal poverty level for a family of four is approximately $66,000 per year. Five hundred percent is approximately $165,000. A family earning above that figure is in Tier 4, which received awards only after Tiers 1 through 3 were funded in the first cycle.

Within each tier, awards are distributed by lottery when the number of eligible applicants exceeds what the funding can cover.

Is a TEFA award guaranteed once you apply?

No. The first application cycle made this clear. More than 274,000 families applied, and just over 100,000 received awards. That's roughly a 36% award rate. Families in lower tiers who applied during the first cycle may not have received funding even if they were otherwise eligible.

Novatio accepts students without academic entry requirements. But Novatio's acceptance and a TEFA award are two separate things. A family can be fully enrolled at Novatio and still be waiting on a TEFA decision, or have received no award at all. Texas families should not assume that applying for TEFA or enrolling at Novatio guarantees that funding will be approved.

For families who receive a TEFA award, Novatio's $8,500 tuition is covered in full. For families who don't receive an award, private school tuition would need to be paid another way.

What happens if siblings apply at the same time?

There is a sibling rule in the program. If a child is accepted and an eligible sibling applies during the same application period, the sibling is also accepted. This applies when both applications are submitted in the same cycle, so families with more than one child who are applying together should submit all applications at the same time rather than staggering them.

Does Novatio qualify as an approved TEFA school?

Participating private schools must be accredited by a TEPSAC-recognized organization or by TEA. Novatio is Cognia-accredited, and Cognia is a TEPSAC-recognized accreditor. Novatio serves students in grades 2 through 8 as a Cognia-accredited virtual private school, and Texas families who receive a TEFA award can use it toward Novatio's $8,500 tuition.

You can learn more about how Novatio's curriculum is structured or visit the admissions page to find out what enrollment looks like once a TEFA award is in place.

What can I use the remaining TEFA funds for after tuition?

If the standard award is $10,474 and Novatio's tuition is $8,500, approximately $1,974 remains in the account after tuition is paid. TEFA funds can be used for other approved educational expenses beyond tuition. The specific list of qualifying expenses is set by the Texas Comptroller and can change, so families should verify current approved categories through the official TEFA portal before spending remaining funds.

What does TEFA mean for students with learning differences?

For students with an IEP, the higher award amount can make a meaningful difference. A student entering Novatio with documented learning needs may qualify for both a larger TEFA award and Novatio's Special Education Support Program, which includes services such as case management, targeted reading support, and one-on-one dyslexia intervention. Those additional support services carry an added cost, and for students with an IEP or 504, those additional costs are covered by the state.

Students with dyslexia or ADHD often find that Novatio's academic model addresses some of what made traditional school difficult. Each student works at their own level within every subject block, so a student who is strong in math but needs additional reading support can receive that help without being held back elsewhere. NWEA MAP data from Novatio's first cohort showed that students learned 4.6 times faster than expected during the measured period. Individual results vary.

Where is the application cycle for 2026-27?

The 2026-27 TEFA application cycle has closed. An interest list is open for the 2027-28 school year. Families who want to secure a spot for the next cycle should join the interest list through educationfreedom.texas.gov as early as possible, since first-cycle demand far exceeded available funding.

If you have questions about whether Novatio is the right fit for your family, what enrollment looks like once an award is confirmed, or what support services are available for your child, you can book a 1:1 call with Karissa at https://meetings.hubspot.com/karissa-ham/novatio-admissions. The call costs nothing and there's no commitment involved.

Frequently Asked Questions

How much is the TEFA award for 2026-27?

The standard TEFA award for a student attending an approved private school is $10,474 for the 2026-27 school year, as set by the Texas Education Agency. Students with a current IEP on file may receive more, up to a $30,000 cap set in Senate Bill 2, depending on what the IEP documents. The maximum for homeschool families is $2,000.

Is everyone who applies for TEFA guaranteed to receive an award?

No. In the first application cycle, more than 274,000 families applied and just over 100,000 received awards. When eligible applications exceed available funding, awards are distributed by lottery within each priority tier. Families in lower-income tiers and those with documented disabilities receive priority, but an award is never automatic.

Does having a 504 plan qualify a student for a larger TEFA award?

A larger award is tied to a current IEP, not a 504 plan. Families whose child has a 504 should review current Texas Comptroller guidance to understand what documentation is required and what award amount applies to their situation.

Can TEFA cover Novatio's full tuition?

Yes. Novatio's Texas tuition is $8,500 per school year. The standard 2026-27 TEFA award of $10,474 covers that in full, with approximately $1,974 remaining for other approved educational expenses. Novatio's acceptance and a TEFA award are separate processes, so families should confirm their award before finalizing enrollment.

What should I do if the 2026-27 cycle has already closed?

The 2026-27 application cycle is closed. An interest list for the 2027-28 school year is open at educationfreedom.texas.gov. Joining early is worthwhile given that first-cycle demand was roughly three times the number of awards available.