What Does TEFA Cover? Tuition, Fees and Approved Expenses

Texas families searching for private school options often hit the same wall: how does TEFA actually work, and will it cover what they need to pay? The Texas Education Freedom Act creates awards that can cover private school tuition in full for many families, but the amount, the eligibility rules and the odds of receiving an award depend on details that matter a lot before you start planning.

TEFA is a Texas school-choice program created by Senate Bill 2 in 2025 and administered by the Texas Comptroller of Public Accounts. It provides education savings awards that eligible families can use toward approved private school tuition. For 2026-27, the standard award for a student attending an approved private school is $10,474. That figure is set by the Texas Education Agency and applies to most students.

How much does TEFA pay for private school tuition?

The standard TEFA award for an approved private school in 2026-27 is $10,474 per child. For families enrolling at Novatio, where tuition is $8,500 per school year, a standard award covers the full cost of tuition. Novatio accepts TEFA as payment through its enrollment process, so families who receive an award do not pay Novatio tuition out of pocket.

Students with a current IEP on file may qualify for a higher award, up to a $30,000 cap set in SB 2, based on what the IEP documents. Most students with an IEP receive less than the cap. The specific amount depends on the student's documented needs, not on a single flat rate for every student with a disability.

What can TEFA funds be used for?

TEFA awards are designed for private school tuition and fees at an approved participating school. Families using TEFA to enroll at Novatio direct their award toward Novatio's annual tuition through the TEFA portal. TEFA is not a general education spending account, so it does not work like Arizona's ESA program, which covers a broader range of educational expenses. TEFA is specifically structured around private school enrollment.

If you have questions about what your specific award covers beyond tuition, the Texas Comptroller's office and the TEFA portal at educationfreedom.texas.gov are the authoritative sources.

Is every Texas family guaranteed a TEFA award?

No. TEFA is not universal or automatic. In the first application cycle, more than 274,000 families applied and just over 100,000 received awards. When the number of eligible applicants exceeds available funding, a lottery is used to determine who receives an award within each priority tier. Receiving an award is not guaranteed regardless of your income, your child's academic record or which school you want to attend.

Novatio accepts students without academic entry requirements, but admission to Novatio and approval for TEFA funding are two separate processes. A student can be accepted to Novatio before receiving a TEFA award, and a family can receive a TEFA award without yet having enrolled anywhere. The two processes run independently.

Who gets priority for a TEFA award?

TEFA uses four priority tiers for 2026-27. Knowing which tier you fall into affects your chances in any lottery.

• Tier 1: Students with a disability and household income at or below 500% of the federal poverty level (FPL). For a family of four, 500% FPL is approximately $165,000 per year.
• Tier 2: Household income at or below 200% FPL. For a family of four, that is approximately $66,000 per year.
• Tier 3: Household income between 200% and 500% FPL.
• Tier 4: Household income above 500% FPL, with additional priority given to students who were enrolled in a Texas public school for at least 90% of the 2024-25 school year.

Disability status alone does not place a student in Tier 1. Both the disability and the income requirement must be met to qualify for that tier. An eligible sibling who applies in the same period as an accepted student is also accepted, which matters for families with more than one child.

Does a 504 plan qualify a student for a higher award?

No. A higher award for a student with a disability requires a current IEP on file, not a 504 plan alone. The IEP documents the student's specific needs, and the award amount for that student is based on what the IEP shows. Families who believe their child may qualify for an increased award should confirm their documentation with the Comptroller's office and review the current official TEFA rules before assuming a higher amount will apply.

What schools can accept TEFA?

Private schools participating in TEFA must be accredited by a TEPSAC-recognised organisation or by TEA. That accreditation requirement matters because it filters out programs that have not been reviewed by an independent quality authority. Novatio School is Cognia-accredited, and Cognia is a TEPSAC-recognised accreditor, so Novatio meets that participation standard for Texas families.

When you compare private virtual schools that accept TEFA, accreditation is one of the clearest checkpoints to start with. Learning more about what Cognia accreditation means and how to verify it helps you evaluate any school's credentials before you commit.

Can TEFA cover online private school?

Yes. TEFA is not limited to brick-and-mortar private schools. Approved private virtual schools, including Novatio, are eligible to participate as long as they meet the accreditation and other TEA requirements. For Texas families whose child is in grades 2-8, Novatio's model of certified teachers, personalized academics and live afternoon clubs is available through TEFA.

NWEA MAP data from Novatio's first cohort showed that students learned 4.6 times faster than expected during the measured period. That result came from a real student population, not a projected goal. Individual results vary, and Novatio does not guarantee any specific outcome for new students.

What is the school day like at Novatio?

Students follow a structured school day from 8:00 AM to 2:00 PM Central time. In the morning, they complete approximately two hours of focused, personalized academics across five core subjects: Language, Reading, Math, Social Studies and Science. All students work on the same subject during each academic block, but each student works at their own level within that subject. A student who needs to strengthen foundational math skills and a student who is ready for pre-algebra can both be working during the math block without one being held back by the other.

Certified teachers are present throughout the day to provide guidance, answer questions and step in when a student gets stuck. AI works behind the scenes to adjust each student's learning plan based on real-time assessment data. Students are not left alone with a chatbot, and teachers remain the center of the academic experience.

Afternoons are for live, teacher-led clubs focused on practical skills, creative projects and real challenges. See how Novatio structures its full academic program if you want a more detailed look before scheduling a call.

When can Texas families apply for TEFA?

The 2026-27 TEFA application cycle has closed. An interest list is open for 2027-28 at educationfreedom.texas.gov. Families who want to be notified when the next cycle opens should register on that list through the official Texas portal. Application dates and award rules are set by the Texas Comptroller's office, not by Novatio, and can change between cycles.

If your family has already received a 2026-27 TEFA award and wants to use it at Novatio, or if you have questions about what the enrollment process looks like, the right next step is to book a call with Novatio's admissions team.

How do I get started at Novatio with TEFA?

After receiving a TEFA award, families select Novatio through the TEFA portal and complete Novatio's enrollment requirements. The application takes under two minutes, there is no academic entry requirement and there is no application fee. Start your application at the admissions page or book a 1:1 call with Karissa at https://meetings.hubspot.com/karissa-ham/novatio-admissions if you want to talk through fit, funding or your child's specific situation before applying.

Novatio does not control TEFA approval, but the admissions team can explain exactly what families need to have in place before and after an award arrives.

Frequently Asked Questions

How much does TEFA pay in 2026-27?

The standard TEFA award for an approved private school is $10,474 per student for 2026-27, as set by the Texas Education Agency. Students with a current IEP may qualify for a higher amount, up to a $30,000 cap, based on what the IEP documents. Most students with an IEP receive less than the cap.

Is TEFA first come, first served?

No. When eligible applicants exceed available funding, TEFA uses a lottery within each priority tier. In the first cycle, over 274,000 families applied and just over 100,000 received awards. Being in a higher priority tier improves your odds, but an award is not guaranteed.

Does Novatio's tuition fit within the TEFA award?

Yes. Novatio's Texas tuition is $8,500 per school year. The standard 2026-27 TEFA award of $10,474 covers that tuition in full. Families who receive an award do not pay Novatio tuition out of pocket.

Does a 504 plan qualify my child for a larger TEFA award?

No. A higher award for a student with a disability requires a current IEP on file. A 504 plan alone does not qualify a student for an increased amount. Confirm your child's documentation with the Texas Comptroller's office before planning around a higher figure.

Can I apply for TEFA now for the 2026-27 school year?

The 2026-27 application cycle has closed. You can join the interest list for 2027-28 at educationfreedom.texas.gov. Application dates are set by the Texas Comptroller's office and can change between cycles.