What Is TEFA? A Complete Guide to the Texas Education Freedom Accounts Program
Share
By Samantha Russell, OTR/L | SkillSprouts OT
If you’ve been hearing about the Texas Education Freedom Accounts program and wondering what it actually means for your family, you’re in the right place. TEFA is one of the biggest developments in Texas education in a generation — and for families who homeschool or send their children to private school, it represents a real opportunity to access state education funding in a way that wasn’t possible before.
This guide covers everything you need to know: what TEFA is, who qualifies, how much funding families receive, what you can spend it on, and how the whole thing actually works from application to purchase.
What Is TEFA?
TEFA stands for Texas Education Freedom Accounts. It’s a state-funded education savings account (ESA) program created when the Texas Legislature passed Senate Bill 2 in 2025, backed by $1 billion in funding.
In plain terms: Texas families who choose to educate their children outside the public school system — through private school or homeschooling — can apply to receive state education funds deposited into a digital account. Those funds can then be spent on approved educational expenses through the Odyssey marketplace, an online platform run by the program’s implementation partner.
The program is administered by the Texas Comptroller of Public Accounts, with Odyssey serving as the certified educational assistance organization (CEAO) that manages the platform, the digital wallets, and the approved vendor marketplace.
Who Is TEFA For?
TEFA is designed for Texas families who are educating their children outside the public school system. To be eligible, your child must:
- Live in Texas
- Be a U.S. citizen or have been lawfully admitted into the United States
- Be enrolled in an approved private school or be homeschooled
- Not be enrolled in a Texas public school at the same time
That last point is important — if your child is currently in public school and you’re considering switching, they would need to withdraw before TEFA funds can be used.
How Much Funding Do TEFA Families Receive?
Funding amounts for the 2026–27 school year:
| Student Type | Annual Funding |
|---|---|
| Approved private school students | $10,474 per child |
| Homeschooled students | Up to $2,000 per child |
| Students with a disability and an IEP on file with TEA | Up to $30,000 per child |
Unused funds at the end of the school year roll over to the following year, as long as your child remains enrolled in the TEFA program. So there’s no pressure to spend everything in one year.
How Does the Priority System Work?
Because TEFA launched with more applicants than anticipated, applications are prioritized in this order:
- Students with a disability and a household income at or below 500% of the Federal Poverty Level (FPL)
- Students from households at or below 200% of FPL
- Students from households between 201% and 500% of FPL
- All other eligible applicants, depending on available funding
This means children with disabilities and lower-income families get first access to funding. If your child has an IEP, applying promptly and making sure that IEP is on file with the Texas Education Agency is especially important.
What Can TEFA Funds Be Used For?
Approved TEFA expenses include a wide range of educational costs. Here are the main categories:
- Tuition and fees at an approved private school
- Instructional materials and educational supplies — including curriculum, textbooks, workbooks, and educational activity materials
- Tutoring services
- Online educational programs and courses
- Therapies and special services for students with disabilities (including occupational therapy)
- Computer hardware and software required for educational use
- School meals (breakfasts and lunches) at approved schools
- Uniforms
- Transportation to and from approved education providers
All purchases must go through the Odyssey marketplace to approved vendors. Families cannot use TEFA funds at general retailers — only vendors who have been registered and approved by the program can accept TEFA payments.
How Does the Odyssey Marketplace Work?
Odyssey is the official platform for all TEFA transactions. When your application is approved, you’ll set up an Odyssey account that includes a secure digital wallet showing your real-time balance.
From there, you can browse the Odyssey marketplace — an online store of approved educational vendors and service providers. When you make a purchase, the funds come directly from your TEFA wallet to the vendor. You never handle the money directly, and there’s no reimbursement process to navigate.
Families can shop for multiple students from a single account, and the platform is mobile-friendly so you can manage your purchases from your phone.
When Are Funds Available?
Funds are released in three stages after approval:
-
Early April 2026
Funding notifications sent to approved families
-
July 1, 2026
At least 25% of your annual funding is loaded into your Odyssey wallet — you can start shopping
-
October 1, 2026
At least 50% of your total funding is available
-
April 1, 2027
Remaining funds available in your account
Remember: funds that aren’t spent by the end of the school year roll over as long as your child stays in the program.
What About Future Application Windows?
The first TEFA application window ran February 4 – March 17, 2026. If you missed it, future application windows are expected to open. The best way to stay informed is to monitor the official TEFA website and sign up for updates from your school or the Comptroller’s office.
You can also sign up for the SkillSprouts OT newsletter — we’ll share updates as new TEFA windows open and as the program evolves, alongside our regular content about child development and at-home OT activities.
Is TEFA the Same as a School Voucher?
You may have heard TEFA referred to as a “school voucher” program. It shares some similarities — state funds flowing to families who choose non-public education — but ESA programs like TEFA are generally broader. Vouchers typically cover tuition only. TEFA funds can be used for a much wider range of educational expenses beyond tuition, including curriculum, supplies, tutoring, therapies, and technology.
Think of it less like a check made out to a school and more like a prepaid education debit card that you can spend on a whole range of approved educational needs.
Summary: The Key TEFA Facts
| Question | Answer |
|---|---|
| What is TEFA? | Texas Education Freedom Accounts — a state-funded ESA program |
| Who runs it? | Texas Comptroller of Public Accounts, with Odyssey as platform partner |
| Who qualifies? | Texas K–12 students in private school or homeschool (not enrolled in public school) |
| Private school funding | $10,474/year per student (2026–27) |
| Homeschool funding | Up to $2,000/year per student |
| IEP/disability funding | Up to $30,000/year per student |
| Where do I spend it? | Odyssey marketplace, approved vendors only |
| When are funds available? | Starting July 1, 2026 (in stages) |
| Do unused funds expire? | No — they roll over year to year |
Ready to Start Planning Your TEFA Purchases?
SkillSprouts OT is an approved vendor on the Odyssey marketplace. Our monthly Activity Box — filled with 20+ therapist-designed activities for fine motor skills, sensory development, and pre-writing readiness — qualifies as an approved TEFA educational supply expense.
When your funds are loaded on July 1, search “SkillSprouts OT” on Odyssey to find us. In the meantime, explore the Activity Box here so you know exactly what you’re getting.
Explore the Activity Box