Texas Funds Education Freedom Accounts For 85,344 Students Amid Record Demand

August 3, 2026 - 04:26

Texas has officially funded Education Freedom Accounts for 85,344 students in the program's first year, following a massive wave of interest that saw roughly 274,000 applications. The state's new school choice initiative, known as TEFA, ended up funding far more students than initially expected, reflecting strong demand from families across the state.

The approved accounts provide up to $10,000 per student for private school tuition, tutoring, textbooks, and other educational expenses. With the final funding numbers now set, the program will cover about 31 percent of all applicants. That leaves many families on a waiting list, though state officials have indicated they may look at expanding capacity in future budget cycles.

The application period closed in February, and the Texas Education Agency processed the selections through a random lottery system. Priority was given to students from low-income households, those with disabilities, and children of active-duty military families. Officials say the final count of funded students is the result of available appropriations from the state legislature, which set aside $500 million for the first year.

Supporters of the program call it a major step toward giving parents more control over their children's education. Critics, however, argue that the funding could drain resources from public schools, especially in rural areas where private options are limited. The state has promised to monitor the program's impact and will release detailed reports on student outcomes and spending later this year.

For now, the 85,344 students who received accounts are set to begin using them in the upcoming school year. Families who were not selected can reapply in the next cycle, which is expected to open in the fall.