Republican Gov. Greg Abbott signed the school voucher bill into law at an event at the Governor's Mansion in Austin on May 3. (Photo by Matt Hennie)
Rules for the state’s new $1 billion private school voucher program were finalized on Nov. 25. Here’s what you need to know about the controversial initiative.
Private school vouchers, which were a top priority for Republican Gov. Greg Abbott this legislative session, became law in May. The program creates savings accounts from public taxpayer funds that parents can use for private school tuition or homeschool materials.
The money can also be spent with state-approved vendors on additional expenses, including uniforms, textbooks, testing fees, computers, and tutoring.
As questions about the new law remained, acting Texas Comptroller Kelly Hancock finalized rules and guidelines in late November that will govern how the school choice program will operate.
How much money is available?
In its first year, the program will be capped at $1 billion, and can be used by up to 90,000 students.
The amount a family can receive depends on its intended use. Students attending private schools will receive around $10,000, while homeschooled students will receive up to $2,000.
Students with disabilities may be eligible for up to $30,000 annually. The rules allow families to apply to the program with a physician’s note or a Social Security determination letter to prove a child has a disability. But disability rights advocates said those options don’t hold the same weight as requiring an evaluation of a child’s needs in an educational setting, according to the Texas Tribune.
In the program’s initial guidance released in August, private pre-K students were only eligible to receive $2,000, but the finalized rules make it clear that preschoolers are eligible for the full $10,000 amount if they also meet the state’s free public pre-K requirements.
If there’s any money remaining in a student’s account at the end of a program year, it will carry over to the next year, but only if the child remains eligible and continues in the program.
Who can apply and when?
Any school-aged child in Texas who is a US citizen is eligible to apply for the program, including those currently enrolled at private schools. Any student that receives a voucher is required to withdraw from public school.
If there are more applicants than spots available, priority will be given to families based on their adjusted gross income.
Additionally, students with disabilities from families of four earning less than $160,000 annually will receive first priority, according to the finalized rules. Low-income families making under $64,300 for a family of four will be next in line, and the remaining 20% of funds will be available to families at any income level until the program cap is reached.
If an admission to the program happens after the school year begins, funds in the student’s account will be prorated.
The application window for private schools to join the program will open on Dec. 9. To participate, schools must be accredited and open for at least two years..
Applications for Texas families will open on Feb. 4 through an online portal that is not yet publicly available.
Hancock’s press release also clarified that students who are accepted into the program and remain in good standing will not need to reapply each year.
During the application process, parents will have to provide proof of residence and income. They must also agree to not sell items bought with money from the program for 12 months, withdraw money from the account, or ask for a reimbursement.
Additionally, if parents decide to unenroll their child from private school, they must give the state a 30-day written notice.
The application window would remain open until mid-March, and the state will aim to notify approved students in early May.
Who is running the program?
In October, Hancock announced that Odyssey, a technology company, will work with the comptroller’s office to run the program and design the application process.
Odyssey, which also runs school choice programs in Georgia, Iowa, Louisiana, and Wyoming, will develop a system for families to shop for educational products and pay tuition, and will be in charge of distributing the awarded funds.
The state contract allows Odyssey to earn up to $50 million for implementing the $1 billion program.
When does the program start?
The program will officially begin at the start of the 2026-27 school year.
What are people saying?
School vouchers sparked contentious debate in the legislature earlier this year.
Proponents claimed the voucher program gives Texas residents more opportunity for school choice.
“These administrative rules, like the program itself, put Texas parents in the driver’s seat,” Hancock said. “We are executing the letter of the law as passed by the Legislature, and we’re doing it with families and students at the center of every decision.”
But critics said the program takes money away from already struggling public schools, and lawmakers and education advocates called the program “welfare for the wealthy,” They are concerned the vouchers don’t cover enough of the cost of private school tuition and won’t help low-income families who aren’t able to make up the difference.
In Dallas, where private high school tuition can reach well over $30,000 a year, the vouchers wouldn’t even cover half the cost, according to a COURIER Texas survey of more than 30 private high schools in Dallas that showed the average tuition cost for a private high school is over $20,000 per year.
The Texas American Federation of Teachers has also voiced concerns over Odyssey’s involvement.
“Given Odyssey’s track record of operational mismanagement and misuse of state funds in much smaller voucher programs, Texans should sound the alarm about the comptroller’s decision to entrust Odyssey with $1 billion of our taxpayer dollars and the educational outcomes of our children,” Zeph Capo, president of the Texas AFT, said.
Read the Texas Comptroller Office’s full set of finalized voucher rules.
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