What Can You Spend TEFA Funds On? A Complete Guide to Approved Expenses | SkillSprouts OT
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What Can You Spend TEFA Funds On? A Complete Guide to Approved Expenses
By Samantha Russell, OTR/L | SkillSprouts OT | Published 2026
The short answer: A lot. Texas Education Freedom Accounts cover a wide range of educational expenses — from curriculum and tutoring to therapy services and OT materials. This guide breaks down every approved category so you can make the most of your funds.
One of the most common questions we hear from Texas families who've enrolled in TEFA is some version of: "Okay, I have this money in my Odyssey wallet — what can I actually spend it on?"
It's a great question. TEFA is more flexible than most people expect. The program was specifically designed to give families real choice in how they support their child's education — and that flexibility shows up in the expense categories Texas approved.
Below is everything you need to know, including which categories we fall into (spoiler: a few of them).
New to TEFA? Start with our overview: What Is TEFA? A Complete Guide to the Texas Education Freedom Accounts Program →
The Approved Expense Categories at a Glance
TEFA funds can be used across eight major categories. Here's a quick overview before we go deeper:
Curriculum, workbooks, educational kits, manipulatives, and hands-on learning tools.
Private tutoring, learning centers, educational therapists, online learning programs.
Tuition and fees at eligible private schools that participate in the program.
Computers, tablets, and educational software required for the child's education.
Occupational therapy, speech therapy, physical therapy, and behavioral services.
Homeschool curriculum packages, online courses, and structured learning programs.
Select extracurricular programs with an educational focus.
Products and subscriptions available through the Odyssey marketplace from approved vendors.
Let's go through each one in detail.
1. Instructional Materials
This is one of the broadest and most useful categories, and it's the one that applies directly to products like our Activity Box.
Instructional materials include physical and digital resources that support your child's learning. Think of it as anything educational that isn't a course or formal curriculum — the hands-on tools, activity resources, and supplemental learning materials that fill in the gaps and bring learning to life.
Examples of approved instructional materials include:
- OT-designed activity boxes and skill-building kits (like ours)
- Educational workbooks and activity books
- Manipulatives (math blocks, letter tiles, sorting sets)
- Art and sensory supplies used for educational purposes
- Science kits and experiment sets
- Educational games and puzzles with clear learning objectives
- Fine motor skill development tools
- Handwriting practice materials
Our Activity Box is an approved TEFA instructional material
Each SkillSprouts OT Activity Box contains 20+ therapist-designed activities targeting fine motor development, sensory regulation, pre-writing skills, and bilateral coordination. As an approved vendor on the Odyssey marketplace, you can purchase our boxes directly with your TEFA wallet — no out-of-pocket cost, no reimbursement paperwork.
Funds start releasing July 1, 2026. Search "SkillSprouts OT" on Odyssey when your wallet opens.
2. Tutoring & Educational Services
TEFA funds can pay for private tutoring and supplemental educational services — a category that's especially valuable for children who need more individualized support than a classroom or standard curriculum provides.
This includes:
- One-on-one or small group tutoring (in-person or online)
- Learning centers and academic enrichment programs
- Educational therapists (reading specialists, math coaches, etc.)
- Structured online learning programs with a qualified instructor
- Test prep and academic coaching for older students
The key requirement: the service must be educational in nature and provided by an approved vendor. This is why signing up through the Odyssey marketplace matters — it confirms a vendor has been reviewed and approved for the program.
3. Private School Tuition
For families who have enrolled their child in an eligible private school, TEFA funds can cover tuition and school fees. Private school families receive up to $10,474 per year in TEFA funding — a significant contribution toward tuition costs at many Texas private schools.
A few important notes on this category:
- The private school must be an eligible participating institution
- Families using TEFA for private school tuition cannot also simultaneously receive tuition assistance from other Texas programs for the same expenses
- Not all private schools participate — check the Odyssey marketplace or contact your school's admissions office to confirm
4. Technology
Computers, tablets, and educational software are covered when they're required for a child's educational program. This is particularly relevant for homeschool families who rely on digital curriculum, online classes, or educational apps.
What typically qualifies:
- Laptops and tablets needed for educational programs
- Educational software licenses and subscriptions
- Assistive technology for students with disabilities
- Online learning platform subscriptions (when the platform is an approved vendor)
General-purpose devices (like a family computer used primarily for entertainment) would not qualify. The technology should be specifically tied to the child's educational use.
5. Therapeutic Services
This is a category that matters a lot to our community, and it's one of the most meaningful parts of the TEFA program for families with children who have developmental, sensory, or learning challenges.
TEFA funds can be used for:
- Occupational therapy (OT) — including school-based and clinic-based services
- Speech-language therapy
- Physical therapy
- Applied behavior analysis (ABA) for children with autism
- Other therapeutic services with an educational or developmental focus
As a school-based occupational therapist, I know how hard it can be to access OT services — especially for families who are homeschooling or attending schools without a full therapy team. TEFA's inclusion of therapeutic services as an approved expense is genuinely meaningful. If your child has been evaluated for OT or is on a waitlist, this is worth exploring. Your TEFA funds could go directly toward sessions with a licensed OT.
For children with an IEP or qualifying disability, the TEFA program has a separate, higher funding tier (up to $30,000/year) specifically to support therapeutic and specialized educational needs. We cover this in depth in our post on TEFA for Children with Special Needs →.
6. Curriculum
For homeschool families especially, the curriculum category is foundational. TEFA funds can cover complete homeschool curriculum packages, individual subject courses, and structured online learning programs.
Examples:
- Full homeschool curriculum packages (classical, Charlotte Mason, Montessori-inspired, etc.)
- Individual subject curricula (math programs, phonics programs, science kits with instruction)
- Online homeschool academy enrollment
- Video-based courses and structured educational programs
- Foreign language learning programs
The distinction between "curriculum" and "instructional materials" can feel blurry — and honestly, there's overlap. In general: curriculum is the structured learning program or course itself; instructional materials are the physical or digital resources that support that learning. Both are covered, which is good news for families building a comprehensive homeschool environment.
7. Extracurricular & Enrichment Programs
Select extracurricular activities with an educational component may be covered. This is one of the more nuanced categories and is generally evaluated on a case-by-case basis through the Odyssey marketplace approval process.
Programs that tend to qualify:
- Educational enrichment programs (STEM camps, coding classes, art education programs)
- Programs that build academic or developmental skills
- Educational music instruction (instrument lessons focused on music literacy)
Standard recreational sports and general extracurriculars without a clear educational focus typically do not qualify. When in doubt, check whether the provider is an approved vendor on the Odyssey marketplace — that's the most reliable way to confirm eligibility before spending funds.
What TEFA Funds Cannot Be Used For
Knowing what's not covered is just as important. Here's a summary:
| Expense | Covered? | Notes |
|---|---|---|
| Homeschool curriculum from approved vendor | ✓ | Must purchase through Odyssey marketplace |
| OT activity boxes (SkillSprouts OT) | ✓ | Approved vendor on Odyssey |
| Speech therapy from approved provider | ✓ | Provider must be approved |
| Private school tuition (eligible schools) | ✓ | School must participate in TEFA |
| Educational software/apps | ✓ | Must be from approved vendor |
| General recreational sports | ✗ | No clear educational focus |
| Public school tuition | ✗ | TEFA is for private/homeschool only |
| Transportation to/from school | ✗ | Not an approved category |
| Food, clothing, or personal items | ✗ | Not education-related |
| Non-educational entertainment | ✗ | Must have educational purpose |
| College tuition | ✗ | TEFA is for K-12 education |
How to Actually Spend Your TEFA Funds
All approved TEFA purchases go through the Odyssey marketplace — the platform Texas uses to manage ESA spending. Here's how it works:
- Log in to your Odyssey account at odysseyportal.com
- Browse or search the marketplace for approved vendors and products
- Add to cart just like any online store
- Check out using your TEFA wallet — funds come directly from your account balance
You cannot purchase from a non-approved vendor and submit for reimbursement. All transactions must happen within the Odyssey platform using approved vendors. This is worth understanding clearly before funds hit your wallet July 1.
Before July 1, browse the Odyssey marketplace and make a wish list of what you want to purchase. Funds are released in stages (at least 25% on July 1, 50% by October 1), so knowing what you want ahead of time means you can move quickly when your wallet opens — especially for popular vendors that may have limited inventory or subscription slots.
A Note on "Approved Vendor" Status
Throughout this guide, you've seen the phrase "approved vendor" come up repeatedly. Here's why that matters so much:
TEFA funds can only be spent with vendors who have gone through Texas's approval process and are listed on the Odyssey marketplace. A product or service could be perfectly educational and developmentally valuable — but if the company isn't an approved vendor, TEFA funds can't be used to purchase from them.
This is exactly why we went through the full approval process. We wanted to make sure that when Texas families' TEFA funds opened up, SkillSprouts OT would already be there waiting for them on the marketplace. We're approved and listed — you'll be able to find us by searching "SkillSprouts OT" once your wallet is active.
Frequently Asked Questions About TEFA Expenses
Can I use TEFA funds to pay for occupational therapy services?
Yes. Therapeutic services — including occupational therapy, speech therapy, and physical therapy — are an approved TEFA expense category. The provider needs to be an approved vendor. If your OT provider isn't on the Odyssey marketplace yet, it's worth asking them if they've looked into becoming approved.
Do I need to save receipts or submit documentation?
Because all purchases go through the Odyssey marketplace, the platform automatically tracks your spending. You don't need to submit separate reimbursement forms or upload receipts for marketplace purchases — the system handles that. Keep records of your Odyssey transaction history for your own reference.
Can I use TEFA funds for multiple children?
TEFA accounts are set up per child. If you have multiple children who qualify, each child has their own account and their own funding amount. You can manage all accounts through Odyssey but they are separate wallets.
What happens if I accidentally buy something that isn't approved?
The Odyssey marketplace is designed to prevent this — you can only complete purchases with approved vendors within the platform. If you somehow make an ineligible purchase, the Texas Education Agency could require repayment. The safest approach is to only purchase through the marketplace from listed vendors.
Can I buy a subscription (like a monthly Activity Box) with TEFA funds?
Yes — if the subscription is from an approved vendor and is for an eligible expense category. Our Activity Box subscriptions (monthly, 3-month, 6-month, or 12-month) are all available through the Odyssey marketplace. Many families find that purchasing a multi-month subscription with their first fund release is a great way to lock in a full year of activities.
Are digital products (apps, online courses) covered?
Yes, digital educational products and online courses are covered as long as they fall under an approved expense category and the provider is an approved vendor. Educational software, learning platform subscriptions, and digital curriculum are all eligible in principle.
When do my TEFA funds become available to spend?
Funds begin releasing July 1, 2026. At least 25% of your annual allocation will be available then. You'll have at least 50% by October 1, 2026, and the full balance by April 2027. Unused funds roll over — they don't expire at the end of the school year.
I'm homeschooling — does my child qualify for TEFA?
Homeschool families are a primary audience for TEFA. Homeschooled children in Texas can qualify for up to $2,000/year in TEFA funding. Children with qualifying disabilities who are homeschooled may qualify for significantly more. See our post on TEFA for Special Needs for details.
Find SkillSprouts OT on the Odyssey Marketplace
We're an approved TEFA vendor in Texas. When your funds open July 1, search "SkillSprouts OT" to add our therapist-designed Activity Boxes to your cart — no out-of-pocket cost, no paperwork.
Learn About Our Activity Box →Keep Reading: The TEFA Series
- Post 1: What Is TEFA? A Complete Guide to the Texas Education Freedom Accounts Program — Start here if you're new to TEFA and want to understand the basics, eligibility, and funding amounts.
- Post 2: What Can You Spend TEFA Funds On? (You're here)
- Post 3: TEFA for Children with Special Needs: Understanding the $30,000 IEP Funding — Everything families of children with disabilities need to know about TEFA's highest funding tier.