Comptroller Office’s Has Full Authority to Stop Taxpayer Funds from Going to Schools Illegally Tied to Terrorists or Foreign Adversaries
January 25, 2026 – Attorney General Ken Paxton has issued a formal legal opinion confirming that the Texas Comptroller’s Office holds full and exclusive authority to block taxpayer funds from going to private schools that are illegally tied to terrorist organizations or foreign adversaries under the Texas Education Freedom Accounts (TEFA) program.
The opinion was issued in response to a request concerning the scope of authority held by the TEFA administrator, Comptroller Kelly Hancock, particularly regarding the eligibility of private schools seeking to participate in the state’s school choice program. Paxton’s opinion makes clear that decisions related to disqualification based on violations of other laws rest solely with the Comptroller’s Office.
“The people of Texas deserve the highest assurance that no taxpayer dollars will be used, directly or indirectly, to support institutions with ties to a foreign terrorist organization, a transnational criminal network, or any adversarial foreign government,” the request stated.
Paxton’s opinion points to language in Senate Bill 2 that allows schools to be excluded from TEFA participation if they violate “other relevant law[s].” As an example, the opinion notes that any institution found to be providing material support to a designated terrorist organization would automatically be ineligible for the program.
“Let me be crystal clear: Texans’ tax dollars should never fund Islamic terrorists or America’s enemies,” Paxton said. “The Comptroller’s Office has always possessed exclusive authority under the TEFA framework to stop any school illegally tied to terrorists or foreign adversaries from accessing taxpayer dollars, and this opinion affirms that authority.”
The attorney general also said his office is prepared to defend any lawful action taken by the Comptroller to prevent abuse of the program by terrorist groups or hostile foreign governments, including the Chinese Communist Party.
The opinion further clarifies that delays in approving certain Christian or private schools, which have been noted in public reporting, are unrelated to the legal interpretation outlined in the opinion. Authority over eligibility determinations and the timing of approvals rests solely with the Comptroller’s Office, not the Office of the Attorney General.
