Texas Education Savings Account Program

Texas

The Texas Education Savings Account Program provides education savings accounts (ESAs) to K–12 students starting in the fall of 2026. With a $1 billion initial program appropriation, potentially up to 90,000 Texas students will be able to receive an estimated $10,500 per year in the first year of this program. Students with state-recognized disabilities can receive up to $30,000 per year and homeschool students will receive $2,000 per year. Eligibility is universal and there is a priority system that is triggered if demand exceeds the number of accounts that can be funded. In those cases, priority will be given to students who are siblings of program participants, students with state-recognized disabilities, and those from low- and middle-income families. Funds may be used for qualifying expenses, which include private school tuition and fees, textbooks, exams and assessments, transportation, educational therapies and services, certain technological devices, among other expenses. _We do not administer this program._

Education Savings Account

Student Eligibility

Eligibility is universal for all legal K–12 residents of Texas. Additionally, students who are eligible to enroll in a district’s or open-enrollment charter school’s prekindergarten (Pre – K) program are also eligible. If the program receives more applications than can be funded, the state will follow the following rubric to issue scholarships. First prioritization will be given to: * Siblings of current students with an education savings account from the program * Children who have never left the ESA program * Children who left the program and who are now enrolled in public or charter school wishing to re-enter the program Within each of those groups, priority will be awarded to: * Children with a disability who are members of a household with a total annual income that is at or below 500% of the federal poverty guidelines * Children who are members of a household with a total annual income that is at or below 200% of the federal poverty guidelines * Children who are members of a household with a total annual income that is above 200% of the federal poverty guidelines and below 500% of the federal poverty guidelines * Children who are members of a household with a total annual income that is at or above 500% of the federal poverty guidelines _(Last updated May 14, 2025)_

Use of Funds

Account funds may be spent on qualifying expenses, which include tuition and fees for private school, college, online coursework, and industry-based credentials; textbooks; uniforms; fees for classes and services provided by a school district or open-enrollment charter school; fees for assessments; tutoring; transportation; computer hardware and software; other technological devices; and breakfast or lunch when provided during the school day by a private school. Families not enrolled in a private school will receive up to $2,000 and may use the funds for qualifying expenses, including textbooks, exams and assessments, transportation, educational therapies and services, and certain technological devices, among other expenses. Families enrolled in accredited private schools may use the funds for private school tuition and fees as well as all other approved expenses. _(Last updated May 14, 2025)_

Funding Amount & Source

This program is funded by a $1 billion dedicated account in the General Revenue Fund, which was created by the 2026-2027 General Appropriations Bill (SB 1, 89th Legislative Session). Standard account values are estimated at up to $10,500, and students with state-recognized disabilities will receive the standard account value plus funds that their school district would have spent on the student’s individualized education program (no more than $30,000, per student). Homeschool students receive $2,000 per year. _(Last updated May 14, 2025)_

Legal History

There have been no legal challenges to this program. _(Last updated May 14, 2025)_

Program Timeline

2025

Program Enacted

Legislation passed to create the program

2026

Program Launched

Program began accepting applications

2025

Last Updated

May 14, 2025

Program Guidelines

Income LimitNone
Enrollment CapNone
Testing MandateNational Norm-Referenced for 3rd–12th grade students in accredited private school.
Budget Cap$1 billion