AUSTIN, Texas – An Austin lawmaker is raising questions about the selection of a New York-based company that has been hired to run the state’s new school choice program.
State Representative Gina Hinojosa, a long-running critic of school choice, calls this latest move “political grift.”
What is Odyssey?
The backstory:
The online application process for the Texas Education Freedom Accounts could open around Christmastime, although an early 2026 roll out remains possible. The billion-dollar program will be managed by a New York-based tech company called Odyssey.Â
“So, I think the unique aspect of the Texas program certainly will be the scale of it. There’s never been a first-year school choice program like the Texas Education Freedom Account, just in terms of size,” said Odyssey CEO Joe Connor.
The cash from the Texas program will not be limited to private school tuition. Money will be distributed for homeschooling, pre-k, tutoring and even some school supplies.
“And if the demand is larger than the supply of funds, which is about a billion dollars, then we will do a lottery set up by the Texas legislature,” said Connor.
Local perspective:
For parents, the chance for some additional cash is an enticing offer.
“I am curious to see what it looks like and see if we’d be eligible, because I do think there’s some income base portion of it, so I’m curious to see if it’s something we’d be eligible for,” said Rebecca Carpentier.
Another mom, Kaity North, said the extra cash would help pay for some kindergarten supplies.
“Finding all the exterior resources that I need each week has cost a little bit more than I anticipated. So that would really help our pocketbook,” said North.
State Rep. Gina Hinojosa speaks out
What they’re saying:
Low-income families and those with disabilities are to be priorities, but State Rep. Gina Hinojosa has doubts.
“Yeah, it is too good to believe, because what we know is that the private schools first have to admit kids before those kids are eligible for this voucher program. And lots of kids won’t be admitted. The first kids who will be admitted are the kids who are already in the private school,” said Hinojosa (D) Austin.
Hinojosa and other critics say Odyssey seemed to have an inside track to a contract worth up to $50 million. The company recently won a half million prize from a foundation linked to school choice advocate Jeff Yass. The Pennsylvania billionaire made headlines last year after making large political donations to Governor Greg Abbott. And, Odyssey also hired people who have worked for Abbott.
“So, there are many opportunities for grift. We’ve just seen the first use, and just think about it. It’s $50 million of money that should be going towards educating kids before one kid sits at a desk, right? That’s outrageous,” said Hinojosa.
Connor responds
Connor defended the cash award he got from Yass’ foundation.
“We’re really proud of the fact that we’ve won it, and it reflects the great work and innovation that we brought to the school choice space,” said Connor.
He also addressed hiring former aides to Governor Abbott.
“Absolutely. So, we’re no different than any other company that does business in the state of Texas. We’ve hired some government relations professionals to help us navigate the lay of the land and the capital and make sure that people know about Odyssey and keep people updated on our work,” said Connor.Â
What’s next:
The company will have a local office.Â
Connor indicated some of the work from the Texas office will include the review processes in place to prevent fraud.
The Source: Information from interviews conducted by FOX 7 Austin’s Rudy Koski