Record Demand for Texas Education Freedom Accounts Highlights School Choice Shift

April 6, 2026 – AUSTIN — More than 274,000 students applied for Texas Education Freedom Accounts (TEFA) in the program’s first year, according to new data released by the Texas Comptroller’s Office, underscoring a surge in demand for school choice options across the state.

Acting Comptroller Kelly Hancock called the response unprecedented, noting that Texas set a national benchmark for first-year participation in a school choice initiative. On the program’s opening day alone, roughly 43,000 applications were submitted, with another wave arriving just before the March 31 deadline.

The data shows broad interest across income levels, but particularly among families with financial need. Nearly three-quarters of applicants come from low- or middle-income households. About 30,000 students fall into the program’s top priority tier—those from low- or middle-income families with disabilities—while another 79,000 qualify under a second tier reserved for low-income households.

The TEFA program, created by the Texas Legislature, allows families to use public funds for approved educational expenses outside the traditional public school system, including private school tuition, tutoring, and specialized services. Supporters argue the program gives parents greater control over their children’s education, while critics have raised concerns about diverting funds from public schools and ensuring accountability.

Due to limited funding in its first year, not all applicants will receive accounts. State officials expect available funds to be exhausted within the second priority tier. A lottery system will be used to distribute remaining funds among eligible applicants and establish a waitlist for those not immediately selected. That waitlist will be reported to lawmakers as they consider future funding levels.

The Comptroller’s office is currently working with Odyssey, the program’s designated educational assistance organization, to verify application data. Families are expected to be notified about awards later this month, with funds scheduled for distribution in July.

Officials emphasized that oversight will be critical as the program rolls out, encouraging the public to report suspected fraud or misuse as Texas implements one of the nation’s largest school choice efforts.