Texas families approved for the state's new Education Freedom Accounts are learning that some expenses listed as eligible on the program's website can't be purchased yet.
The Texas Education Freedom Accounts (TEFA) program has awarded funds to about 118,440 students for the 2026-27 school year. Program spokesperson Travis Pillow called it the largest first-year school choice program in U.S. history. But as families start spending, some are discovering the gap between what the website promises and what the system delivers.
Houston-area homeschool parent Joseph Parle told KPRC 2 News he was approved for the $2,000 homeschool option and assumed he could use it for his son's dual-credit college courses. The TEFA website lists "a dual-credit course at a higher education provider" as an eligible expense.
When Parle contacted Odyssey, the platform that administers TEFA accounts, he learned the college would have to be an approved vendor on the Odyssey platform first. Neither direct payment to the college nor reimbursement was possible. A customer service representative told him she did not think any colleges offering dual-credit courses were available through Odyssey.
"This was very disappointing as I had anticipated that the $2,000 could be used to defray the costs of his college classes as part of his homeschool curriculum," Parle said.
The state's TEFA providers page confirms that higher education institutions can apply to become approved vendors on a rolling basis but must be reviewed and accepted before appearing in the marketplace. Whether Lone Star College, the primary dual-credit provider for Woodlands-area students, has applied or been approved is not clear from available public records.
How much TEFA pays
The program, created by the Texas Legislature in 2025 through Senate Bill 2, provides $10,474 per year for private school students, up to $30,000 for students with an Individualized Education Program (IEP) on file and $2,000 for homeschool students. It prioritizes students with disabilities and families earning less than $66,000 a year for a household of four, according to Community Impact.
About 80% of participants are from low-income families, and 24% have a disability. Roughly 70% of students who received awards or invitations already attended private school or were homeschooled before the program launched. More than 106,000 students remain on the waitlist.
Locally, Children's Lighthouse at 5585 Creekside Forest Drive in The Woodlands and Little Explorers Academy, which has a Woodlands-area location, are among the few confirmed TEFA-approved providers in the area.
Private schools set their own aid rules
In a survey of 286 participating TEFA schools, KPRC 2 News found wide variation in how they handle the program alongside their own financial aid. Some schools require families to apply for TEFA before considering school-based aid. Others allow the funds to be combined. Some reduce or eliminate their own assistance after a family receives a TEFA award.
Pillow said the state does not dictate private schools' financial decisions but requires that students not be treated differently because they receive TEFA funds. KPRC 2 News reported that a May 2026 TEFA news release said schools should have a written policy explaining how financial aid does not change the amount of tuition charged.
At a Wednesday, Sept. 9 legislative hearing, concerns went beyond financial aid. Steven Aleman, a policy specialist with Disability Rights Texans, said families of students with disabilities are "struggling to find private schools that will accept them, let alone provide special education services or even accommodations," according to Houston Public Media. Some families have returned their TEFA funds because they could not find suitable resources, Aleman said.
The Texas Comptroller's office is now asking lawmakers to double TEFA funding to more than $2 billion for the 2028-29 biennium. Parents or schools can report concerns about tuition policies at [email protected].
