Texas School Vouchers Explained: What Parents Need to Know About ESAs in 2025

As Texas prepares to roll out a new wave of educational reform, one term is on every parent’s radar: school vouchers. But what many may not realize is that the official name for Texas’s school voucher program is the Education Savings Account (ESA). Set to launch in the 2026–27 school year, this initiative is poised to significantly impact how families choose and pay for private education in the Lone Star State.

In this post, we’ll walk you through what a school voucher—or ESA—really is, how it works, who qualifies, and what it might mean for tuition, school choice, and your family.

What Are School Vouchers (ESAs)?

Although often referred to as school vouchers, Texas’s program will technically operate under the term Education Savings Accounts (ESAs). The concept is similar: the state provides funding to families, who can then use it toward private school tuition or other approved educational expenses.

Starting in 2026, eligible Texas families can receive:

• $10,000 per student, per year for private school tuition.

• Up to $30,000 for students with disabilities.

• $2,000 per year for homeschool families.

The funds will be distributed through state-managed accounts. Parents can authorize quarterly payments to private schools that opt into the ESA program.

How Do Families Qualify for a Texas School Voucher?

Not all families will automatically receive an ESA. Texas plans to fund 90,000 ESA slots in the first year. This may sound like a significant number, but with nearly 6 million school-age children in the state, it’s clear that demand could outstrip supply.

Here’s how the selection process will work:

1. Apply through an online portal managed by the Texas Comptroller or certified partners.

2. Priority goes to:

   • Students with disabilities (including those with IEPs and 504 Plans).

   • Low- and moderate-income families (up to 500% of the federal poverty level—approximately $160,750/year for a family of four)

This means that if you’re a parent of a child with special needs or fall within the qualifying income bracket, your application will be among the first considered.

How Will the Funds Be Used?

Once approved, the ESA funds are deposited into a secure account administered by the state. Parents will then authorize tuition and fee payments directly from that account to the participating private school of their choice.

Besides tuition, ESA funds may also be used for:

• Educational therapies

• Curriculum and materials

• Testing services

• Tutoring

This flexibility empowers parents to personalize their child’s education using public funds.

Will School Vouchers Increase Private School Tuition?

This is a hot topic in education policy, and other states offer a glimpse into what might happen in Texas.

Iowa Example:

• Launched its ESA program in 2023–24.

• 29,000 students applied, but only 9,000 seats were available.

• Result: Schools raised tuition, with some increasing kindergarten costs by 21% to 24%Texas ESA School Vouche….

Texas Outlook:

Fortunately, Texas may avoid such sharp price hikes—at least initially. According to the Texas Private Schools Association, there are roughly 70,575 open seats in private schools statewide. With 90,000 funded students, this suggests a relatively balanced supply and demand. However, in major metro areas like Dallas, Houston, and Austin, where demand is higher, some tuition increases may still occur over time.

Arizona’s Case:

Arizona expanded ESA access universally in 2022. Although some tuition increases followed, they were modest. National inflation accounted for a $1,050 increase over two years, signaling that with thoughtful planning, significant tuition jumps can be avoided.

Will Private Schools Be Required to Accept ESA Funds?

No—private schools are not required to participate in the ESA program. Some schools may initially opt out due to:

• Concerns about state oversight

• Standardized testing requirements

• Curriculum autonomy

• Admissions flexibility

However, over time, it’s likely that most private schools will join the program. Why? Because families will increasingly expect schools to accept ESA funds. Refusing to participate could risk making a school appear exclusive or unresponsive to community needs.