What Is Texas TEFA? A Parent's Guide to Education Freedom Accounts

The Texas Education Freedom Account program, or TEFA, is a state-funded education savings account that Texas families can use to pay private school tuition and other approved education costs. The Texas Legislature created it through Senate Bill 2 in 2025 with $1 billion in funding, and the Texas Comptroller of Public Accounts administers it. For the 2026-27 school year the Texas Education Agency set the award at $10,474 per child attending an approved private school.

What is the Texas Education Freedom Account program?

TEFA is an education savings account, not a discount and not a reimbursement. When a child is accepted, the state funds an account the family draws from to pay approved education expenses at participating providers. Senate Bill 2 made it the largest first-year school choice program in the country, and the Comptroller reports that more than 274,000 applications came in during the first cycle. That demand matters for planning, because it is the reason an award is not automatic.

How much does a TEFA award actually provide?

For the 2026-27 school year the Texas Education Agency set the standard award at $10,474 per child enrolled in an approved private school. Two amounts sit outside that figure. A student with a current individualized education program on file with their school district may receive more, up to a $30,000 cap written into Senate Bill 2, with the actual amount based on the IEP. The Comptroller notes that most students receiving the disability amount will receive less than the cap. Families who choose homeschool rather than a participating private school may receive up to $2,000.

Is every Texas family eligible?

Eligibility itself is broad. A child qualifies if they are a United States citizen or lawfully present, and are eligible to attend a Texas school district, open-enrollment charter school, or a public pre-K or kindergarten program. Children of active-duty military parents are included. Once a child is accepted, they stay eligible until they graduate, move out of Texas, enroll in a Texas public or charter school, or age out.

Does every eligible family receive an award?

No, and this is the single most important thing to understand before you plan around TEFA. The Comptroller states plainly that all eligible children are not guaranteed funding. When eligible applicants exceed available funding, participation is decided by priority tier and then by lottery. In the first cycle, more than 274,000 applications produced just over 100,000 awards. Eligibility and an award are two different things, and you should not commit to a tuition obligation on the assumption that funding will arrive.

How do the priority tiers work?

State law sets the order in which applications are funded when demand exceeds money available. For 2026-27 the tiers are:

Tier 1 is children with a qualifying disability in a household at or below 500% of the Federal Poverty Level. Tier 2 is children in a household at or below 200% of that level. Tier 3 is children in a household between 200% and 500%. Tier 4 is children in a household above 500%, with additional priority for students who attended public school for at least 90% of the 2024-25 school year.

The Comptroller gives working examples: for a family of four, 200% of the Federal Poverty Level is about $66,000 a year and 500% is about $165,000. One detail families often miss is that disability status alone does not place a child in Tier 1. Tier 1 requires a qualifying disability and household income at or below 500%. A student with an IEP in a higher-income household is placed in Tier 4 for priority purposes, though they may still qualify for additional special education funding if they are awarded an account.

There is also a sibling rule worth knowing. If a child is accepted during an application period, an eligible sibling who applies in that same period is accepted too.

What can TEFA funds pay for?

Approved education expenses at participating providers, with private school tuition the most common use. The Comptroller maintains a finder tool listing participating schools and education services, and adds new participants regularly. Because approved expense categories and provider lists change, check the official program site rather than relying on any school's summary, including this one.

How does TEFA work with an online private school?

The mechanics are the same as for a school with a building. A participating private school must be accredited by an organization recognized by the Texas Private School Accreditation Commission or by the Texas Education Agency. After a family receives a TEFA award, they select their school and complete that school's own enrollment requirements. The two processes are separate: the state decides funding, and the school decides admission.

Novatio is a Cognia-accredited private virtual school serving grades 2 through 8. Students complete roughly two hours of focused, personalized academics each morning with certified teachers, then spend afternoons in live clubs built around practical skills and real-world projects. The school day runs from 8:00 AM to 2:00 PM Central time for Texas families, and teachers don't assign homework. You can see how the academic model is built on the curriculum page.

What would Novatio cost a Texas family with a TEFA award?

Novatio's tuition is $8,500 per school year. For a student who receives the standard 2026-27 award of $10,474, that award covers Novatio's tuition in full. Receiving a TEFA award is a separate process from being accepted at Novatio, and acceptance at Novatio does not guarantee that the state will fund an account. Families should confirm their award before treating tuition as covered.

Does this work for a student who needs extra support?

Many of the supports students with IEPs, 504 plans, dyslexia, ADHD or executive function needs typically require are built into the daily model rather than added after a student struggles: individual pacing by subject, short focused blocks, frequent breaks, text-to-speech, and regular teacher check-ins. Novatio also offers a Special Education Support Program that can include case management, executive function coaching, targeted reading help, and one-to-one specialist-led dyslexia intervention. Those services carry an additional cost, and for a student with a qualifying IEP or 504 that cost may be covered by state funding. Novatio provides learning support, not speech therapy, occupational therapy, counseling or independent educational evaluations. Details are on the special education support page.

What kind of results does the model produce?

NWEA MAP data from Novatio's first cohort showed students learning 4.6 times faster than expected growth over the measured period. That figure comes from Novatio's own cohort, not a network average, and individual results vary. One student moved from the 8th to the 80th percentile in reading over a year on NWEA MAP. That is one student's experience rather than a promised outcome, but it shows what mastery-based pacing can do when a student is placed at the right level.

How do you apply?

Applications are submitted to the Comptroller through the TEFA parent portal, not through any individual school. The 2026-27 application cycle has closed; the program is currently collecting an interest list for 2027-28. Because deadlines and portal steps change between cycles, confirm current dates at educationfreedom.texas.gov before you plan around them.

If you want to talk through whether Novatio fits your child while you wait on a funding decision, you can book a call with our admissions team. The application takes under two minutes and there is no fee.