Final rules for Texas' $1 billion school choice program approved
Gov. Abbott signs school choice bill into law
Texas Governor Greg Abbott signed Senate Bill 2 into law on Saturday, creating a school choice program that allows parents to use public school dollars to fund private school education.
AUSTIN, Texas - Rules that will govern Texas’ controversial new school choice program were finalized Tuesday.
Acting Texas Comptroller Kelly Hancock said that the new regulations will be used to manage the Texas Education Freedom Accounts program that was created by the passage of Senate Bill 2 earlier this year.
The program creates education savings accounts that allow families to use $1 billion in public funds for private school tuition, instructional materials, tutoring, therapies and other educational expenses.
What they're saying:
"Our mission is to execute SB 2 responsibly, transparently and quickly," Hancock said in a statement released Tuesday. "These rules uphold the intent of the Legislature and keep the focus where it belongs – on students and their future. Since first serving on our local school board more than 30 years ago, I have believed parents – not a ZIP code – should determine their kids’ educational opportunities. It’s an honor to get this program up and running for Texans."
How much money is available?
In its first year, the program will be capped at $1 billion and used by up to 90,000 students. It could grow to nearly $4.5 billion per year by 2030.
The amount of money a student can receive depends on their situation.
Students with disabilities participating in an Individualized Education Program or certain Pre-K students may be eligible for up to $30,000 annually.
All other students may receive up to $2,000 each year.
Students who are accepted into the program and remain in good standing will not need to reapply each year.
If there are more applicants than spots available, priority will be given to families based on their adjusted gross income.
Austin leader calls the state's hiring of a school choice manager unnecessary
An Austin lawmaker is raising questions about the selection of a New York-based company that has been hired to run the state's new school choice program.
Important dates
On Dec. 9, the application window will open for private schools and current vendors to join the program.
The online application for families in Texas opens on Feb. 6, 2026.
This will allow the program to be implemented in time for the 2026-27 school year, Hancock said.
FILE - A student completes an assignment in class. (FOX 7 Austin)
Controversial program
Opponents have said the program takes money away from public schools and will not help low-income students.
Some have gone so far as to call it "welfare for the wealthy," saying the money will be used by those who are already sending their children to private schools.
Several other states have similar programs in place, but Texas' will be the largest in the country.
The Source: Information in this story comes from a news release by the Texas Comptroller's Office, analysis of the new rules and previous reporting.
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