TEFA vs staying in public school: what changes, what TEFA does not cover, and the waitlist reality
Published Sep 18, 2026
Page updated Oct 10, 2026
Short answer, as of October 8, 2026: TEFA pays $10,474 toward a participating private school (up to $30,000 with an IEP; up to $2,000 for homeschool). Public school costs nothing at the door and comes with rights and services that private schools do not owe you. Neither choice is free of trade-offs, and in year one the bigger risk was not choosing wrong but not getting funded at all: 100,000+ children were still waitlisted on August 13, 2026. This page lays the two paths side by side without a recommendation.
What changes when you leave public school
| Question | Public school | Participating private school with TEFA |
|---|---|---|
| Tuition | none | school's tuition minus $10,474 (or minus up to $30,000 with an IEP); the gap is yours |
| Transport | district buses where routes exist | you arrange it; "transportation to/from approved providers" is an allowed account expense |
| Special education | services under an IEP are an individual right (IDEA) | no individual right to those services (34 CFR §300.137); the school offers what it can; the account can buy therapies not covered by Medicaid or another benefit |
| Testing | state tests | the school gives a nationally norm-referenced test to TEFA students each year |
| Admission | by attendance zone | the school decides; seats and deadlines vary |
| Meals, uniforms, devices | school programs | allowed account expenses, within the rules (computers capped at 10% of the year's deposit) |
| Money left over | — | rolls over while the child stays in the program |
Two rows deserve a longer look.
Special education. In a public school an IEP is a legal contract: the district must deliver the services in it. The federal rule for children whose parents place them in a private school says the opposite: no "individual right to receive some or all of the special education and related services that the child would receive if enrolled in a public school." TEFA's answer is money, up to $30,000, to buy those services from the school or from marketplace therapists. Whether a school can actually provide speech, OT or a resource teacher is a question to ask the school in writing; our special-education page lists the questions, and a profile records a school's answer with a date once the school gives it.
Cost. The award is fixed; tuition is not. Fees, uniforms, lunch and the February timing of the last 50% payment all land on the family. The net-cost calculator subtracts the award from a school's published tuition and shows the monthly gap.
What TEFA does not cover
- The gap between tuition and the award.
- Anything bought outside the TEFA Marketplace; there is no reimbursement.
- Payments to a family member.
- Computers beyond 10% of the year's deposit.
- Therapies a government benefit already pays for.
- A guaranteed seat. An award funds an account; the school still admits or declines.
The 2027-28 priority order
State rules rank applicants when money runs short. In year one the order ran by tier: children with disabilities in households under 500% of the poverty level first, then households under 200%, then 200 to 500%, then everyone else (with priority for children who spent at least 90% of the prior year in public or charter school, and a 20% cap on that group). From year two, the Families page sets a new first cut: (1) siblings of participating children, (2) new eligible applicants, (3) prior participants who left for a public or charter school. The lottery tiers apply inside each group.
Read that third group carefully. A family that takes TEFA, returns to public school, and wants back in goes behind every new applicant. Families that stay do not reapply, but rule §16.403(d) requires a notice of intent during the application period, so the next window matters to current participants too. The siblings page and the eligibility checker work through where you would stand.
The waitlist reality
Year one received more than 274,000 applications. TEFA reported more than 109,000 funded by August 28, 2026. The September budget request reported about 110,000 funded and more than 106,000 waitlisted (Community Impact, September 8). Awards moved through the summer as families declined; the Odyssey waitlist FAQ says the August 8 round used the remaining budget and that awards confirmed after September 15, 2026 are prorated. The rules do not carry a waitlisted child into the next year; that child applies again. As of October 8, 2026 the Comptroller's site gives no 2027-28 window date. The waitlist page and the deadline tracker will change the moment it is.
A practical reading: keep the public-school enrollment active until an award is confirmed and a school has confirmed a seat. The Houston, Dallas, San Antonio, Austin and Fort Worth boards show only seats and tuition that schools have confirmed, with the date.
How we verify: amounts, rules and counts are quoted from the Comptroller's pages and releases, the Texas Register and the federal regulation, checked October 8, 2026. Participation status comes only from the Comptroller's participating-schools workbook (educationfreedom.texas.gov/toolkit), file dated October 5, 2026. This site is independent and is not affiliated with the Texas Comptroller of Public Accounts or Odyssey. See our methodology.
Sources
- TEFA Aug 28, 2026 — over 109,000 funded — checked Oct 8, 2026
- Community Impact Sep 8, 2026 — about 110,000 funded; 106,000+ waitlisted — checked Oct 8, 2026
- TEFA — official site FAQ (award amounts; funding schedule; reapplication) — checked Oct 8, 2026
- TEFA — Families page (approved expenses; restrictions; year-2 priority order) — checked Oct 8, 2026
- TEFA — Schools page (participating-school requirements, including a nationally norm-referenced test) — checked Oct 8, 2026
- 34 CFR §300.137 — no individual right to services for parentally-placed private school children (IDEA) — checked Oct 8, 2026
- 34 TAC ch. 16, subch. E, §§16.401–16.410 — TEFA rules (Texas Register, Dec 12, 2025) — checked Oct 8, 2026
- Comptroller release, Aug 13, 2026 — 101,600 funded; 100,000+ on the waitlist — checked Oct 8, 2026
- Odyssey help center — 26/27 TEFA Waitlist FAQ (Sep 15 confirmation date; prorated later awards) — checked Oct 8, 2026
Frequently asked questions
›Is TEFA a voucher?
People call it the Texas voucher program, but the state runs it as an education savings account: the money goes into an account administered by Odyssey and pays a participating school or marketplace vendor. Nothing is paid to the parent.
›If my child has an IEP, do we keep the same services at a private school?
Not as a right. Under federal rule 34 CFR §300.137, a child placed by parents in a private school has no individual right to the special-education services a public school would provide. TEFA offers up to $30,000 to buy services instead; the school decides what it can deliver.
›If we try TEFA and go back to public school, can we get TEFA again later?
You can apply again, but you are third in line. The year-2 order is siblings of participants first, new eligible applicants second, and prior participants who left for a public or charter school third.
›Does applying for TEFA guarantee a place at a private school?
No. An award funds an account; the school still decides admission, and in 2026-27 more than 100,000 awarded-or-eligible children were left on the waitlist for funding. Check seats before you count on either.
TEFA Schools is an independent guide. It quotes the Texas Comptroller's published rules and participating-schools list with the date checked. It is not affiliated with the Texas Comptroller of Public Accounts or Odyssey, it does not decide eligibility or participation, and it is not legal or financial advice.