Texas has announced the final adoption of new rules laid out in a Senate bill passed earlier this year that sets aside $1 billion for families and students to use on private school tuition, educational therapies, resources and more.
In an announcement on November 25, the Acting Texas Comptroller Kelly Hancock shared that the final rules of Texas Senate Bill 2 (SB 2) had been formally filed with the Texas Secretary of State and will become effective in 20 days from filing.
SB 2 was passed at the start of the year, and introduced universal Education Savings Accounts (ESA), also known as the Texas Education Freedom Accounts (TEFA) program, for eligible Texans, allowing them to access funding for educational costs, while promoting “school choice.”
Newsweek has contacted the Texas Comptroller of Public Accounts, and the offices of Senators Paul Bettencourt and Brandon Creighton, who were authors of SB 2, via email for comment.
Why It Matters
The bill has been somewhat divisive among lawmakers in the state, as after the final passage of the bill, the Texas Senate Democratic Caucus issued a statement saying that it stood in “strong opposition” to the legislation.
The caucus deemed it a “deeply flawed voucher scheme that diverts billions of taxpayer dollars from Texas public schools and channels them into private hands.”
What To Know
The ESA program would allow each participating student to receive at least $2,000 annually to cover costs for things like tuition, educational therapies, tutoring, textbooks and more.
Some students are eligible for more financial support. Students attending accredited private schools or “at-risk” pre-kindergarten students may receive more than $10,000 annually, while students with disabilities (based on an Individualized Education Program (IEP)) may receive up to $30,000.
The accounts will be accessible for up to 100,000 students in total, but if the number of applications exceeds the cap, then 80 percent of the available spots will be given to students from low-income backgrounds and those with disabilities, the office of Bettencourt said.
The Texas Comptroller of Public Accounts office added that “a family’s adjusted gross income will be used in determining prioritization for participation.”
All students are eligible to apply, whether they are enrolled in private or public schools, or if they are homeschooled.
While the amount of funds available remains at $1 billion, it has been reported by Fox News that it could be increased to $4.5 billion per year by 2030.
What People Are Saying
Acting Texas Comptroller Kelly Hancock said in a statement: “These administrative rules, like the program itself, put Texas parents in the driver’s seat. We are executing the letter of the law as passed by the Legislature, and we’re doing it with families and students at the center of every decision. Education freedom accounts are about opening doors, expanding opportunities and giving each Texas child the chance to succeed in the environment that fits them best.”
Hancock added: “Our mission is to execute SB 2 responsibly, transparently and quickly. These rules uphold the intent of the Legislature and keep the focus where it belongs — on students and their future. Since first serving on our local school board more than 30 years ago, I have believed parents – not a ZIP code – should determine their kids’ educational opportunities. It’s an honor to get this program up and running for Texans.”
Senator Paul Bettencourt (R-Houston), one of the authors of SB 2, said in a statement: “An old saying is iron sharpens iron, so shall school choice sharpen the entire Texas education system. Senate Bill 2 empowers parents and prioritizes students success with providing comprehensive educational savings accounts (ESAs) to allow Texas families the freedom to choose the educational environment that best suits their children.”
He added: “By offering ESAs with anti-fraud provisions, we are not only providing choices but also fostering a competitive environment that can lead to improvements across the entire education system. Senate Bill 2 aligns with a growing national movement toward educational choice, that I’ve seen in 32 other states that have successfully implemented similar programs.”
The Texas Senate Democratic Caucus said in a statement in April: “Let’s be clear: S.B. 2 is not about “school choice.” It’s about public subsidization of private schools’ choice. It is a step backward for Texas, jeopardizing the very system that supports the overwhelming majority of our children and abandoning our constitutional responsibility to provide every child with a quality public education. Senate Democrats remain steadfast in our fight for fully funded public schools, support and respect for educators and a future in which every child has a fair opportunity to succeed.”
What Happens Next
While SB 2 came into action on September 1, 2025, the final rules regarding the TEFA program will be implemented in less than 20 days, according to the Texas Comptroller of Public Accounts office.
On December 9, eligible accredited private schools and vendors participating in the Parent-Directed Special Education Services will be invited to join the program, and then on February 4, 2026, online application for Texas families will open, ahead of the 2026 to 2027 school year.