Texas Attorney General Ken Paxton has issued a decisive legal opinion confirming that state officials can block schools linked to terrorist organizations or foreign adversaries from accessing the newly established education funding program that will provide families with thousands of dollars for private education expenses.
The January 24 opinion reinforces the Texas Comptroller’s authority to exclude certain educational institutions from the Texas Education Freedom Accounts (TEFA) program, a $1 billion initiative set to launch for the 2026-27 school year. “Let me be crystal clear: Texans’ tax dollars should never fund Islamic terrorists or America’s enemies,” Paxton declared in his official statement.
What Exactly Is TEFA?
The TEFA program, established by Senate Bill 2, represents Texas’ ambitious entry into the education savings account landscape. Unlike traditional voucher programs, TEFA provides eligible families with approximately $10,500 annually per child to spend on approved education expenses outside the public school system — from private school tuition and textbooks to uniforms and transportation costs.
“The Texas Education Freedom Accounts program is broader than a traditional voucher,” said Cotton, founder and executive director of School Discovery Network. “It’s more like a health savings account where you can use it for multiple purposes, not just tuition,” he explained to reporters.
The Texas Education Agency is expected to finalize the exact funding amount in January 2026, with current projections hovering around $10,800 per child for those attending approved private schools. Children with special needs could receive substantially more — up to $30,000 depending on disability severity, according to program guidelines.
Application Timeline and Priorities
Families won’t have to wait long to apply. The application window is scheduled to open on February 4, 2026, and close on March 17, with the Texas Comptroller of Public Accounts managing the process. School systems will be required to upload Individualized Education Programs for eligible students through the APEX-ESA system, according to state education officials.
Not everyone will have equal access to the funds, however. The program prioritizes families with children who have special needs and those with incomes below $162,000 for a family of four. This tiered approach aims to direct resources first to students with the most significant educational challenges.
The program’s scope is considerable. Starting in the 2026–27 school year, participating families can use their education savings accounts for a wide range of qualified educational expenses beyond just private school tuition, including instructional materials and resources that might otherwise be out of reach.
But Paxton’s recent opinion adds a significant security dimension to the program’s implementation. By confirming the Comptroller’s authority to exclude schools with ties to terrorism or foreign adversaries under the “other relevant laws” provision of Senate Bill 2, the state has established a clear boundary on which institutions can participate in the program.
For Texas families eager to explore educational alternatives, the countdown to February’s application opening has officially begun — with both opportunities and limitations now more clearly defined.
