Conroe ISD stands to lose millions in state funding during the 2026-27 school year as students leave for Texas' new voucher program, according to a report released Thursday, Oct. 1.

The analysis by Our Schools Our Democracy and Every Texan found that public schools statewide will lose an estimated $300 million through the Texas Education Freedom Accounts (TEFA) program. At least 184 districts will lose a combined $227 million from students who accepted vouchers and left for private school or homeschooling. Another 549 districts face an estimated $67 million in losses.

Conroe ISD is among the five largest Houston-area districts losing students to the program, Houston Public Media reported. Houston, Fort Bend, Cy-Fair and Katy ISDs round out the list.

The report estimated each departing student costs a district roughly $8,000 in state funding. Texas ties annual public school funding directly to enrollment, so when a student leaves, the money follows.

Across the Houston region, at least 8,100 former public school students accepted vouchers, costing area districts as much as $68 million, the Houston Chronicle reported.

"Vouchers have a public school price tag," said Dee Carney, executive director of Our Schools Our Democracy. "There is an impact on public schools whenever the child leaves and the revenue with them."

Statewide, 30% of voucher recipients were previously enrolled in public schools, according to data from the Texas Comptroller's Office. More than 700 districts reported losing at least one student to the program.

The funding pressure is already visible in Conroe ISD's budget. When the board approved its $769.6 million spending plan for 2026-27 on Aug. 18, the district listed the "impact of education savings accounts" as a factor in its planning. Employee raises were left out because of a lack of available funds.

"We know that the funding simply was not there this year; this will be a legislative priority for us going into the end of the 90th session," Chief Financial Officer Karen Garza said at the Aug. 18 meeting, according to Community Impact.

Nearby Montgomery ISD, with about 9,700 students, lost just over 100 students to vouchers and expects to lose around $800,000. That equals 10 to 12 teachers.

"It's not like we can cut $800,000 of copy paper out of our budget," Superintendent Mark Ruffin told the Houston Chronicle. "When districts are faced with deficit budgets, the only way to right size is by reducing staff."

Carney said districts cannot simply trim expenses dollar for dollar when students leave because costs like transportation, utilities and teachers are fixed.

The TEFA program passed into law in 2025 and began issuing vouchers in summer 2026 for the current school year. More than 200,000 students applied, exceeding the program's billion-dollar budget. After awarding more than 120,000 vouchers, roughly 100,000 students remain on a waitlist.

The Texas Comptroller's Office has asked the Legislature to consider doubling TEFA funding to $2 billion. The Legislature is expected to take up the state's two-year budget when its next session begins in January 2027.