Starting on September 1, 2025, Texas’s new private school voucher law officially comes into effect, implementing the concept of Education Savings Accounts (ESAs) to give most families about $10,000 per child per year to defray private school tuition and other expenses. The catch? A great many of the critical details are left hanging until the Texas Comptroller issues its regulations by May 15, 2026, including application processes, administrative rules, and longer-term funding levels.
From Senate Bill Two to the birth of ESAs
In May 2025, Governor Greg Abbott signed Senate Bill 2 into law and thus fulfilled a campaign promise made by him in 2022 to bring “school choice” to Texas families. The law provides for the establishment of ESAs, which are essentially state-regulated accounts from which participating families may withdraw around $10,000 per student for private school tuition and a smorgasbord of other approved educational expenses like books, transportation, and therapy. In addition, a disabled child would qualify for an extra injection of up to $30,000 a year, which reflects what the state would have spent on giving the child special education services in regular public schools; homeschoolers could get $2,000 a year.
Understanding effective date and launch date
Though the law was technically effective as of September 1, 2025, actual funding for the ESA program will not start until the 2026-27 school year. Thus, these extra months will give Texas Comptroller of Public Accounts (the state’s CFO) time to draft rules and the application process that must be done by statutory deadline on May 15, 2026. The Comptroller will also choose up to five Certified Educational Assistance Organizations (CEAOs) to assist in managing the program and enforcing compliance.
Flow of money: Explaining education savings accounts
As per the ESA model, the state transfers voucher money directly into accounts managed by families through approved online platforms. Parents then authorize payments for qualified expenses to the participating private school or vendor. This billion-dollar budget is set for the 2025-27 biennium; in the event that the number of applicants exceeds available funds, preference would be given to students with disabilities, low-income families, and students that had previously been enrolled in public schools. Higher-income families (those whose income is 500 percent or more than the federal poverty level, about $160,000 for a four-person family) may spend an allowed just up to 20% of the year-one funding.
Accountability and oversight in the public use of their money
Texas’s voucher law requires a wide range of safeguards:
- Accreditation and tenure require private schooling. These schools must be accredited and must also have been in operation for at least two years.
- Standardized testing requirement. Students enrolled in the ESA must take an exam that is nationally recognized and chosen by the private school; there is no requirement for these private institutions to administer the STAAR test.
- Annual reporting requirement. A report shall be released once a year, containing data on participant demographics, test scores, results from satisfaction surveys, and outcomes regarding college and career readiness.
Auditing and prevention of fraud
A private auditing firm, selected under the Comptroller’s direction, will monitor compliance. Accounts may be subject to suspension for misuse while confirmed cases of fraud will be referred for investigation before local authorities.
The structure is known; the funding, at least for now, is clear. Many important details are still TBD:
- Application process: The specific time frame for enrollment, the specific processes by which families’ eligibility will be verified, and the look of the online platform will not be defined until after the Comptroller releases rules next spring.
- Administration and vendors: Families will have to use approved providers, but the criteria for how vendors will be selected and what schools, tutors, and service providers would even be eligible has yet to be determined.
- Long-term costs: As $1 billion is set as the cap for the initial biennium, a state budget analyst has projected that if demand and funding per student remain unchanged, spending for vouchers could soar to an estimated $4.8 billion by the year 2030. Future legislative sessions will determine whether to increase or carry forward the spending cap.
Implications for public education and choice
Advocates call the ESA program an empowering moment for parents to choose alternatives to protect public schools. Detractors say that money from these programs would be siphoned away from already underfunded public districts, especially those in rural areas that do not have private options. Annual reports from the program will track the movement of students and provide some insight into the potential harm caused. For now, families ready to take a private route have nearly two years to investigate participating schools, apply, and weigh the appeal of choice against the political landscape as it evolves.
In this regard, Texas’s voucher program stands as a considerable landmark in school choice in the United States—providing enormous funds for private education, but hanging upon yet unresolved administrative details. Beginning late in 2026, when the ESA program is expected to start, we will have the opportunity to see how the catch unfolds before the eyes of parents, educators, and legislators.
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