Table of Contents
- What Is the Texas Education Freedom Account (TEFA)?
- Who Runs TEFA?
- Why an IEP Matters for TEFA Funding
- How the IEP Evaluation Process Works
- Understanding PEIMS Codes (Texas Education Data System)
- TEFA Funding Levels: IEP, Non-IEP, & Priority Groups
- Will a 504 Plan Qualify?
- Deadlines, Evaluation Timelines, & When to Start
- Frequently Asked Questions
- Join Our TEFA Email Updates
What Is the Texas Education Freedom Account (TEFA)?
Texas is launching a major new education funding program that could reshape how families access private schooling across the state.
The Texas Legislature has approved a major new program called Texas Education Freedom Accounts (TEFA) — a landmark step toward expanding educational choice and access across the state.
TEFA is part of a broader national movement to provide families with greater control over their children’s education through programs often referred to as Education Savings Accounts (ESAs) or Education Freedom Accounts (EFAs). These initiatives give parents the ability to direct a portion of state education funding toward private school tuition, tutoring, or specialized learning support.
At The Tenney School, we’re committed to helping families understand what TEFA means, how it works, and how it could make private school education in Texas more affordable and accessible.
What Is the Texas Education Freedom Account (TEFA) Program?
TEFA is a state-run initiative that allows parents to access a portion of their child’s state education funding for use at participating private schools.
It’s part of a growing movement nationwide to expand educational choice through Education Savings Accounts (ESAs).
With a TEFA account, families will be able to use these funds to pay for:
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Private school tuition
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Educational materials or tutoring
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Special education services
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The Texas Comptroller’s office has awarded a contract to operate the TEFA application portal to Odyssey (Odyssey Education, Inc.).
Who Qualifies for TEFA Funding?
Initially, not every Texas family will qualify. The state plans to roll out TEFA in phases, prioritizing:
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Students with special education needs
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Families with lower household incomes
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Students attending underperforming public schools
Families considering flexible or one-on-one online instruction can review how TEFA funding works for online private school students at Tenney School Live.
Over time, all Texas students are expected to become eligible for TEFA funds as the program expands.
Funding amounts will align with state per-pupil rates (around $11,000), with additional support for students with special needs. Funding levels above the per-pupil rate will depend heavily on a student’s IEP (or lack thereof) and the level of service specified in the IEP.
Why an IEP Matters for TEFA Funding
Under TEFA, not all students will receive the same level of funding. All eligible students may receive a base award (expected to be around $11,000 per year), but students with documented special needs may qualify for significantly higher funding — up to $30,000 depending on need.
Priority for Approval vs. Funding Amount
It’s important to separate two parts of the TEFA process:
1. Priority for TEFA Approval (Who Gets In First)
To qualify for Priority 1 (the highest priority group for receiving TEFA accounts), a student can show any of the following:
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A current or previous IEP
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A Section 504 Plan
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A Full Individual and Initial Evaluation (FIIE)
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A licensed professional’s diagnosis indicating a disability
In other words, an IEP is not required to be approved for TEFA, and families do not need to wait for the IEP process to be complete to apply.
This means families who expect their child may qualify for special education should apply early using whatever documentation they currently have.
2. Funding Levels (How Much a Family Receives)
While several documents can establish Priority 1 eligibility, only a completed IEP from a Texas public school or charter school determines the special-education funding tier.
This is because TEFA funding amounts are tied to the instructional arrangement codes reported through the Public Education Information Management System (PEIMS) — codes that are only assigned through an IEP.
In short:
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504, diagnosis, or FIIE → May qualify for Priority 1 approval
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IEP → Required to receive higher special-education funding levels
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No IEP → Student receives only the base TEFA award
Why Families Should Start the IEP Process Early
The IEP evaluation process—including referral, assessment, ARD meeting, and final plan—can take weeks or months. Because TEFA funding amounts cannot be determined without the completed IEP:
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Families who want to access higher funding tiers
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Families whose child has a suspected disability
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Families currently using private school or homeschool
…should begin the IEP process as early as possible, well ahead of TEFA application deadlines.
Even if the student qualifies for Priority 1 without an IEP, the state cannot assign the higher TEFA funding until the IEP is finalized and coded in PEIMS.
Key Benefits of TEFA for Families
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Choice: Parents decide which school best fits their child’s learning needs.
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Access: Private education becomes more affordable and attainable.
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Flexibility: Funds can be used for specialized learning services, tutoring, or supplemental instruction.
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Equity: Levels the playing field for students from all income brackets.
Families can now choose a school that aligns with how their child learns.
TEFA and Private School Enrollment at The Tenney School
The Tenney School anticipates becoming an approved TEFA vendor. Once the program launches:
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Families may use TEFA funds to pay for partial or full tuition.
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Our admissions and business office teams will help guide parents through the process of applying TEFA funds toward enrollment.
How to Apply for TEFA
Applications are expected to open through the Odyssey vendor portal once the Texas Comptroller’s office finalizes the program setup.
When available, parents will:
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Create an Odyssey account.
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Complete eligibility verification.
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Select their private school or educational provider.
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Allocate TEFA funds directly toward tuition and qualified expenses.
📎 Details are still being implemented; we’ll update this page as the Comptroller and Odyssey finalize the application portal and open it to families.
TEFA Funds Will Likely Only Cover a Portion of Private School Tuition
Families will be responsible for any tuition not covered by TEFA. Below is an example of how that would work with either Tenney School Tuition & Tenney School Live Tuition:
| Program | Approximate Annual Tuition | TEFA Estimate | Scholarship or Family Contribution |
|---|---|---|---|
| The Tenney School | $38,250 | $11,000 | $27,250 |
| Tenney School Live | $20,000 | $11,000 | $9,000 |
Estimates based on current state discussions; amounts and eligibility subject to change.
TEFA in the News
The Tenney School was recently referenced in Houston Chronicle coverage of the Texas Education Freedom Account (TEFA) program, highlighting the timeline and implementation challenges families may face as the program rolls out statewide.
As TEFA continues to develop, families are navigating new funding mechanisms, application processes, and placement considerations. Our goal is to help families understand how these changes may affect their students and what questions to ask as they plan ahead.
Frequently Asked Questions
As the Texas Education Freedom Accounts (TEFA) program moves closer to launch, families understandably have many questions. Here are answers to some of the most common questions about eligibility, funding, and participation.
TEFA is designed to expand education options for Texas families, with funding awarded based on priority groups established by the Texas Comptroller.
Priority Group 1
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Students who are low-income (eligible for free/reduced lunch)
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Have documented special needs (IEP, 504, FIIE, or licensed diagnosis)
Priority Group 2
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Students who are low-income, regardless of disability status
Priority Group 3
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Students with special needs only (not low-income)
Priority Group 4
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All other eligible Texas students
While all groups may eventually receive funding, Priority 1 students will be processed first, followed by Groups 2–4 as funding becomes available.
Both 504 Plans and IEPs can support a student’s TEFA application, but they play different roles:
504 Plan
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Helps determine eligibility priority (Priority Group 1 if also low-income)
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Signals that the student has documented needs
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Does NOT determine funding amounts
IEP (Individualized Education Program)
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Also helps with priority grouping
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Required to qualify for the higher TEFA funding tiers
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Funding amount is tied to the child’s PEIMS disability code within the IEP
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Must be completed by a Texas public school or charter
Summary:
A 504 Plan helps your student get accepted into the program more quickly.
An IEP helps your student receive more funding once accepted.
The Texas Education Freedom Account (TEFA) program is a state-funded initiative that gives families education dollars they can use for private school tuition, online learning, tutoring, therapies, and other approved educational expenses.
TEFA was created in 2025 and is being implemented by the Texas Comptroller, with Odyssey Education operating the application portal.
Expected Timeline:
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Final rules released: November 26, 2025
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Application portal launches: February 2026
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Funding begins for the 2026–2027 school year
We will update this page as the timeline is finalized.
TEFA funds may be used for a wide range of approved educational expenses, including:
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Private school tuition (on-campus or online). For families exploring online instruction, here is the guide to TEFA for online students.
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Curriculum materials and textbooks
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Educational therapies
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Tutoring and academic support
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Certain technology expenses
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Approved instructional programs
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Testing or evaluations required for learning needs
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Transportation, if allowable under Comptroller rules
A complete list of eligible expenses will be available in the Odyssey Education TEFA portal when applications open.
The Tenney School has maintained accreditation through Cognia (formerly the Southern Association of Colleges & Schools) since 1979. The accreditation process is repeated every five-to-six years. The last School Accreditation Engagement Review of The Tenney School was successful completed in February 2022.
In Texas, all approved accrediting organizations post their member schools on the TEPSAC website (Texas Private School Accreditation Commission). Parents can check for any private school accreditation, including The Tenney School, on this site.
Learn if One-on-One Instruction Is Right for Your Child
Wondering if Tenney is the right fit? Let us show you what personalized learning looks like in person. Our admissions team is ready to walk you through the process, answer your questions, and schedule a private tour or virtual consultation.
Looking for TEFA-qualified online instruction?
Visit our online campus here: TEFA for Online Students →
https://tenneyschoollive.com/texas-tefa-online-students/