Texas Homeschool Funding & ESA Guide (2026)

Texas has finally joined the school choice movement. After years of legislative battles, Senate Bill 2 passed in 2025, creating the Texas Education Freedom Accounts (TEFA) program—the state's first school choice initiative since 1957^[1].

For homeschoolers, the program offers $2,000 annually for educational expenses. While more modest than Arizona's or Florida's programs, it represents a significant shift in Texas education policy. The program launches for the 2026-27 school year with $1 billion in funding, potentially serving 50,000-100,000 students in year one.

If you're homeschooling in Texas, this guide covers everything you need to know about TEFA eligibility, funding, approved expenses, and the application process.

What Funding Is Available for Texas Homeschoolers?

Texas Education Freedom Accounts (TEFA) provide different funding levels based on your education setting^[2]:

Homeschoolers: $2,000 annually for educational expenses. This is a fixed amount regardless of grade level.

Private School Students: $10,474 annually (85% of statewide average per-pupil spending). This covers tuition and approved educational expenses.

Students with Disabilities: Up to $30,000 annually for students with an active IEP. This enhanced funding can cover specialized therapies and services.

Accumulation: Unused funds roll over to the next year as long as your child remains in the program, capped at $20,000 maximum accumulation.

The program is administered by the Texas Comptroller of Public Accounts with Odyssey as the operational partner.

Texas ESA Funding Amounts

Eligibility Requirements

Priority System for Funding

If applications exceed available funding (the $1 billion cap), a lottery determines placement using this priority order^[3]:

1. Siblings of current participants — After year one, siblings get automatic priority 2. Students with disabilities + income below 500% FPL — ~$160,000-$240,000 for a family of 4 3. Students with income at or below 200% FPL — ~$60,000-$64,300 for a family of 4 4. Students between 200-500% FPL — Middle-income priority tier 5. Higher-income families — Limited to 20% of total program budget

For the first year (2026-27), students transitioning from public schools receive temporary priority over those already in private school—this provision expires after the first year.

What Can You Spend TEFA Funds On?

• Curriculum and instructional materials — Textbooks, workbooks, digital subscriptions
• Private tutoring services — From approved, registered providers
• Online coursework — Virtual learning programs and dual credit courses
• Assessments and exams — Standardized tests, AP exams, industry certifications
• Educational therapies — Services not covered by federal/state/local benefits
• Computer hardware and software — Capped at 10% of annual award (~$200 for homeschoolers)
• Transportation — To and from approved educational providers
• School uniforms and required supplies — For private school students
• College coursework — Dual enrollment and early college programs

What Texas ESA Funds Cannot Cover

Several expenses are explicitly prohibited^[2]:

- Family member payments — You cannot pay relatives within the third degree of consanguinity (parents, grandparents, siblings, aunts/uncles, first cousins) - Cash withdrawals or reimbursements — All purchases must go through the state-administered Odyssey platform - Non-registered vendors — Only providers registered in Texas and approved by the program can receive payments - Homeschool tuition — Homeschoolers cannot use funds for "tuition" to themselves

Technology Cap: Computer hardware and software purchases are capped at 10% of your annual award. For homeschoolers receiving $2,000, that means a maximum of ~$200 for technology.

How to Apply for Texas TEFA

Key Deadlines for 2026-27

Using the Odyssey Platform

The Odyssey digital wallet is how you'll access and spend your Texas ESA funds. Here's what to expect:

Getting Started: - You'll receive login credentials after approval - Browse the pre-approved vendor marketplace - Purchases are made directly through the platform—no out-of-pocket spending required

Making Purchases: - Search vendors by name or category - Request payment for tutoring services, curriculum, and supplies - Track your balance and spending history

Important Notes: - All purchases require approval and go through the state platform - You cannot request reimbursement for out-of-pocket expenses - Vendors must be registered with the Texas program to receive payment - The platform is new—expect some learning curve in the first year

Contact: help.tx@withodyssey.com or 737-379-2362 for support.

Maximizing $2,000 for Homeschoolers

With only $2,000 available, strategic spending is essential. Here's how to make every dollar count:

Prioritize Core Curriculum: - Math and language arts programs typically cost $200-$500 per subject - Consider multi-year curriculum purchases that cover multiple grades - Digital subscriptions often provide more content per dollar than print

Sample Budget Breakdown: - Core curriculum (math, language arts): $400-$600 - Science/History materials: $200-$300 - Online learning subscriptions: $200-$400 - Tutoring (as needed): $200-$400 - Technology (10% cap): ~$200 - Standardized testing: $50-$100

Stretch Strategies: - Use the library for supplemental reading - Join homeschool co-ops for shared resource costs - Look for curriculum sales during summer months - Consider used curriculum for subjects where current editions aren't essential

Special Needs Funding

Students with disabilities can receive significantly more funding through TEFA^[2]:

Enhanced Funding: Up to $30,000 annually for students with an active IEP on file with the Texas Education Agency.

Documentation Requirements: - Active IEP filed with TEA before application deadline - Public school districts MUST provide IEP evaluations for ESA applicants (new requirement) - Alternatively: Social Security determination letter or physician's documentation

Homeschool + Disability: Homeschooled students with disabilities receive an additional $500 bonus on top of the standard $2,000, for a total of $2,500.

Eligible Expenses: Enhanced funding can cover specialized therapies, one-on-one instruction, assistive technology, and services that would otherwise cost thousands out-of-pocket.

If your child has special needs, securing an IEP evaluation before the application deadline is critical for accessing the higher funding tier.

Testing Requirements

Texas has different testing requirements depending on your education setting:

Private School Students (Grades 3-12): Must take a nationally norm-referenced assessment annually. Below third grade, no testing required.

Homeschoolers: No new testing requirements. The Homeschool Freedom Act (HB 2674), passed alongside SB 2, explicitly prohibits state agencies from regulating homeschooling—including testing mandates^[4].

This is a crucial protection: accepting ESA funds does NOT subject homeschoolers to new testing requirements. Texas homeschool freedom remains intact regardless of ESA participation.

Opting Out of the Program

If you decide TEFA isn't right for your family after enrollment:

- You can opt out at any time without penalty - You do NOT need to repay funds you've already spent - No mid-year withdrawal penalties - You return to regular homeschooling with no additional requirements

This flexibility is important: there's no "lock-in" that forces you to continue participation. If you find the program doesn't fit your family's needs, you're free to leave.

Texas ESA Program Overview

Important Considerations

Before applying for Texas TEFA, consider these factors:

The $2,000 Reality: For homeschoolers, $2,000 is helpful but modest. It won't cover a year's worth of comprehensive curriculum plus tutoring. Set realistic expectations.

Family Payment Prohibition: Unlike some states, you cannot pay family members—even for legitimate tutoring. The "consanguinity clause" prohibits payments to relatives within three degrees.

Platform-Only Spending: You cannot buy curriculum and request reimbursement. All purchases must flow through Odyssey, which limits vendor selection.

New Program Growing Pains: TEFA is brand new. Expect some confusion, vendor availability issues, and processing delays in year one.

Political Considerations: Program rules can change. While the Homeschool Freedom Act protects current freedoms, future legislatures could modify the program.

For many families, $2,000 of free curriculum funding is worth the minor constraints. But if complete independence is your priority, traditional homeschooling with no state involvement remains an option.

The Bottom Line

Texas Education Freedom Accounts mark a historic shift in Texas education policy. For homeschoolers, $2,000 annually in curriculum funding is now available—not life-changing money, but meaningful support.

The first application window opens February 4, 2026 and closes March 17, 2026. If you're interested, start preparing your documentation now. Given this is year one with $1 billion in funding, most applicants should receive awards.

Visit educationfreedom.texas.gov to learn more and create your account when applications open. Even if you're unsure, there's no penalty for applying and declining later.