TEFA Priority Tiers Explained: Which One Is Your Family In?

Not every Texas family who applies for TEFA receives an award. In the first cycle, more than 274,000 families applied and just over 100,000 received funding. A four-tier priority system determines who gets an award first, and understanding which tier your family falls into is the most important step you can take before the next cycle opens.

What is TEFA and how does the priority system work?

TEFA, the Texas Education Freedom Act, was created by Senate Bill 2 in 2025 and is administered by the Texas Comptroller of Public Accounts. The program funds private school tuition and certain homeschool expenses for eligible Texas families. Because applications in the first cycle far exceeded the $1 billion in available funding, the Comptroller uses a four-tier priority system to rank applicants. Families in a higher tier are considered before families in a lower tier, and when eligible applicants within a tier exceed available funding, a lottery determines who receives an award.

What are the four TEFA priority tiers?

Your tier is set by two factors: your household income relative to the federal poverty level (FPL) and whether your child has a current IEP on file. Here is how the tiers break down for 2026-27.

Tier	Who qualifies
Tier 1	Student has a current IEP 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 (with extra priority for students who were enrolled in a Texas public school for at least 90% of the 2024-25 school year)

To put the income thresholds in plain numbers: for a family of four, 200% FPL is approximately $66,000 per year and 500% FPL is approximately $165,000 per year. These figures are based on 2026-27 federal poverty guidelines.

Does having an IEP automatically put my child in Tier 1?

No. A current IEP on file is necessary but not sufficient for Tier 1 placement. Your household income must also be at or below 500% FPL. A family with a child who has an IEP but whose income exceeds 500% FPL does not qualify for Tier 1 and is placed in Tier 4 instead. The combination of disability status and income together determines Tier 1 eligibility, not disability status alone.

If your child does have a current IEP and your household income is at or below 500% FPL, the award amount can be higher than the standard figure. The standard TEFA award for an approved private school is $10,474 per child for 2026-27, set by TEA. A student with a qualifying IEP may receive more, up to a $30,000 cap established in SB 2, depending on the IEP. Most IEP students receive an amount between the standard award and the cap rather than the full cap. If your child has an IEP, speak with the program directly about how the award is calculated for your situation.

What is the standard TEFA award amount?

For 2026-27, the standard TEFA award for an approved private school is $10,474 per child, set by TEA. Novatio's Texas tuition is $8,500 per school year, which means the standard award exceeds Novatio's tuition. For families who receive an award, the enrollment process at Novatio begins after funding is confirmed through the TEFA portal.

For families choosing to homeschool rather than enroll in a private school, the maximum TEFA award is $2,000 under the current program rules.

What about siblings?

If your child is accepted under TEFA, an eligible sibling who applies in the same application period is also accepted. This sibling acceptance applies within the same cycle, so it makes sense for families with more than one child to submit applications at the same time rather than staggering them.

What schools qualify for TEFA?

A participating private school must be accredited by a TEPSAC-recognized organization or by TEA. Novatio is a Cognia-accredited virtual private school, and Cognia is a TEPSAC-recognized accreditor, which means Novatio qualifies as a TEFA-eligible school. Accreditation is worth checking before you commit to any private school, because enrolling in a school that does not meet the accreditation requirement means your TEFA funds cannot be used there. You can learn more about Novatio's curriculum and academic model to evaluate whether it fits your child.

Is receiving a TEFA award guaranteed?

No. In the first cycle, just over 100,000 of more than 274,000 applicants received an award. Families in Tier 1 are considered before Tier 2, Tier 2 before Tier 3, and so on. Within each tier, if applications exceed available funding, a lottery is used. This means that even a Tier 1 family is not guaranteed an award if the program runs out of funding at that tier level. Novatio accepts students without academic entry requirements, but a Novatio acceptance does not guarantee or affect TEFA award decisions. The two processes are separate.

What should my family do right now?

The 2026-27 application cycle has closed. An interest list is open for the 2027-28 cycle at educationfreedom.texas.gov. Getting on that list is the right move for any family who did not receive a 2026-27 award or who is beginning to research TEFA for the first time.

While you wait, this is a good time to evaluate schools so you are ready to act quickly when the next cycle opens. Families who receive a 2027-28 award will select their school through the TEFA portal, then complete that school's enrollment requirements. For Novatio, enrollment involves a short admissions call and paperwork rather than an academic screening.

If your child has an IEP or a 504 plan, it is also worth gathering current documentation now. IEP status affects both your tier placement and your potential award amount, so having accurate, current documentation in hand before the next application window opens can make a real difference. Families with specific questions about special education support can learn more about what Novatio offers or book a call with Karissa to talk through their child's situation directly.

TEFA is not a guaranteed benefit, but families who understand the tier system, have their documentation ready, and identify the right school ahead of time are in the strongest possible position when the next cycle opens.

Frequently Asked Questions

What are the TEFA priority tiers for 2026-27?

There are four tiers. Tier 1 is for students with a current IEP whose household income is at or below 500% of the federal poverty level. Tier 2 is for households at or below 200% FPL. Tier 3 covers income between 200% and 500% FPL. Tier 4 is for households above 500% FPL, with extra priority for students who attended a Texas public school for at least 90% of the 2024-25 school year.

Does my child's IEP automatically place us in Tier 1?

Not on its own. Your child needs a current IEP on file and your household income must be at or below 500% FPL. If your income exceeds that threshold, your family is placed in Tier 4 even with an active IEP.

How much is the standard TEFA award for 2026-27?

The standard award for an approved private school is $10,474 per child for 2026-27, set by TEA. Students with a qualifying IEP may receive more, up to a $30,000 cap under SB 2, depending on the IEP. Families choosing homeschool rather than a private school receive a maximum of $2,000.

Is the 2026-27 TEFA application still open?

No. The 2026-27 cycle has closed. An interest list for the 2027-28 cycle is open at educationfreedom.texas.gov. Families who did not receive a 2026-27 award should register on the interest list and use the time to identify an accredited school so they are ready when the next cycle opens.

If one of my children receives a TEFA award, does my other child get one too?

If your child is accepted and an eligible sibling applies in the same application period, that sibling is also accepted. This applies within the same cycle, so families with more than one child should submit all applications at the same time rather than one at a time.