Acting Texas Comptroller Kelly Hancock announced the adoption of final administrative rules governing the Texas Education Freedom Accounts (TEFA) program , a significant education choice initiative established by the Texas Legislature in 2023 through This program aims to enhance educational options for Texas families by providing financial support for students attending a variety of educational institutions, including private schools, online programs, and homeschooling.
The new rules, which were formally filed with the Texas Secretary of State, outline the TEFA application process, eligibility criteria, and funding mechanisms. These regulations will take effect 20 days after the filing date, marking a significant step forward in expanding educational opportunities across Texas. The Comptroller’s office is committed to ensuring a smooth implementation of the program to benefit students and families throughout the state.
Hancock said, “These administrative rules, like the program itself, put Texas parents in the driver’s seat,” Hancock also reiterated that the law passed will be implemented to the letter of the law. “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.” Said Hancock
In late August, the Comptroller’s office released a set of proposed rules aimed at improving regulatory compliance. To ensure transparency and gather valuable input, the office subsequently conducted a public hearing where community members and stakeholders were invited to share their perspectives. In addition to the feedback received during the hearing, our office carefully reviewed and logged over 300 formal written comments submitted by the public. The final rules have been crafted to incorporate this diverse input while maintaining fidelity to the legislation enacted by the Texas House and Senate, ensuring that the rules effectively reflect both the law and the needs of the community.
According to the rules, students enrolled in accredited private schools that participate in the program, as well as sure at-risk pre-kindergarten students, may qualify for annual funding of over $10,000. Additionally, students with disabilities, as outlined in an Individualized Education Program (IEP), can receive up to $30,000 per year. All other participating students, including those who are homeschooled, may be eligible for $2,000 per year.
The rules clarify that:
- A family’s adjusted gross income will be used in determining prioritization for participation.
- Families of students with disabilities may submit a licensed expert’s evaluation for prioritization, but an IEP is required to qualify for the additional financial support.
- Participating students who remain in good standing will not need to reapply each year.
Accredited private schools may participate in the program if they have been operational for at least two years on any campus, whether situated within Texas or located in other states, and they must administer a nationally norm-referenced assessment to ensure educational quality. For those accredited private virtual schools, it is a requirement to maintain a physical business location within Texas to better support local oversight and engagement. Importantly, the program’s guidelines do not introduce any additional operational requirements; instead, they adhere to existing standards set forth in state legislation and the accreditation process.
Two significant dates for the program’s rollout have now been established. On December 9, 2025, eligible accredited private schools and vendors who are already participating in the Parent-Directed Special Education Services program will be invited to access the registration process through Odyssey’s online portal. Following this, an open application process for vendors planning to join the program will be announced in the near future. Additionally, Texas families can expect the online application to open on February 4, 2026 officially. This timeline allows families to complete the necessary steps in advance of the upcoming 2026–27 school year, ensuring a smooth transition to the new educational framework.
“Our mission is to execute SB 2 responsibly, transparently, and quickly,” Hancock said. “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.”
Hancock announced that the final rules will soon be published in the Texas Register and will be accessible on the Comptroller’s website as a PDF. In addition, the Comptroller’s office looks forward to the release of further guidance materials and instructions in the coming weeks, which will help facilitate a smooth transition to the new regulations.