Critical TEA Guidance for Special Education Administrators: TEFA Implementation
- Accessible Education
- Nov 20
- 12 min read
Updated: Dec 1
December 1, 2025 Update
⚠️ IMPORTANT: Final Rules Have Changed (December 2025)
The Texas Comptroller's final adopted rules for the TEFA program supersede the November 2025 TEA guidance discussed in this post. Most significantly:
Disability documentation requirements have changed: Medical certifications and SSI/SSDI letters are no longer accepted for lottery prioritization
The final rules require documentation aligned with 19 TAC §89.1040 (special education eligibility standards)
Several other program requirements have been clarified or modified
The Comptroller's final adopted rules are the official governing standard. Read our complete update here.
November 20, 2025 - Required Reading for Special Education Directors and Administrators
The Texas Education Agency (TEA) released critical guidance today regarding Senate Bill (SB) 2 and the Texas Education Freedom Accounts (TEFA) program, specifically addressing obligations for children with disabilities who are not enrolled in public schools. This guidance has immediate implications for districts' evaluation processes, ARD committee responsibilities, and compliance obligations.
Executive Summary for Special Education Administrators
Key Takeaways:
Districts will see an increase in evaluation requests from parents of children not currently enrolled in public schools
New $1,000 funding per initial evaluation (including for non-enrolled students) under HB 2
Districts must complete evaluations and develop EFA IEPs for non-enrolled children whose parents seek TEFA funding
Strict IDEA timelines apply regardless of the child's enrollment status
A new "EFA IEP" document is required, streamlined but distinct from traditional IEPs
TEA anticipates significant parent confusion regarding documentation requirements
Public School District Responsibilities Under Senate Bill 2
Evaluation Obligations for Non-Enrolled Children
Who is Responsible: Parents may request an evaluation from either:
The district where the child resides, OR
The district where the child's eligible private school is located
Critical Clarification: If a child is enrolled in an educational site that does not meet the definition of a private elementary or secondary school (such as some forms of homeschool), the district of residence is responsible for the evaluation.
What Parents Will Request
Districts should prepare for two distinct waves of parent requests:
Wave 1: Parents with Medical Documentation
Parents who have used physician certifications or disability benefit letters to gain TEFA lottery priority
These parents may incorrectly assume this documentation satisfies all requirements
Districts must still complete the full FIIE process; medical documentation alone is insufficient for TEFA funding eligibility
Wave 2: Parents Without Prior Documentation
Parents who suspect their child has a disability but have not pursued a formal diagnosis
These parents are exercising their long-standing IDEA rights to request evaluations
The Two-Track System Districts Must Navigate
Track 1: Lottery Prioritization (Comptroller's Responsibility)
Under proposed Comptroller rules, these documents qualify for priority:
Physician certifications confirming a specific disability diagnosis
Proof of supplemental income due to disability (SSI/SSDI letters)
Existing IEPs
Track 2: Additional Funding Eligibility (District's Responsibility)
ONLY these qualify for additional TEFA funding:
Full and Individual Initial Evaluation (FIIE) completed by the district
ARD committee determination of IDEA-eligible disability
EFA IEP developed by the ARD committee
TEA explicitly warns: Parents will present Track 1 documentation expecting it to satisfy Track 2 requirements. It does not. Districts must complete the full evaluation process regardless of external documentation provided.
Mandatory Timelines and Compliance Requirements
Timeline Obligations
When a district receives a written request for evaluation from a parent (regardless of enrollment status):
15 school days to respond to the written request
45 school days to complete the evaluation after obtaining informed parental consent
30 calendar days following the evaluation report for the ARD committee to meet and determine eligibility
Critical Compliance Points
Outside Documentation:
Districts MUST consider outside documentation (private evaluations, medical diagnoses) presented by appropriately certified or licensed professionals
This documentation may help avoid duplication of evaluation efforts
Considering outside documentation could expedite the evaluation process
However, outside documentation does not replace the district's obligation to conduct the FIIE
Dispute Resolution: If parents disagree with evaluation decisions, request an Independent Educational Evaluation (IEE), or if mandatory timelines are missed, parents may use all IDEA dispute resolution options.
District Accountability: All IDEA procedural safeguards apply to these evaluations, even though the child is not enrolled in the district.
The EFA IEP: A New Document Type
What is an EFA IEP?
The EFA IEP is a TEFA-specific Individualized Education Program required for children to qualify for additional funding. It differs from traditional IDEA IEPs.
Required Components of the EFA IEP
MUST Include:
FIIE findings of a disability condition
ARD committee determination of eligibility for special education and related services
Accommodations and modifications needed
Schedule and delivery of services:
Frequency
Duration
Location
Instructional arrangement code (determines the funding level/tier)
NOT Required:
Present levels of academic achievement and functional performance (PLAAFP)
Annual IEP goals
Statements about statewide and district assessments
Critical Understanding for Administrators
The EFA IEP's Sole Purpose: To establish eligibility and calculate funding for the TEFA program.
No Implementation Obligation: Neither the public school district nor the private school has any obligation to implement the services listed in the EFA IEP.
Existing IEPs: If a child was recently in public school and receiving services, their prior IEP will generally suffice for TEFA funding purposes. TEA is finalizing specific rules about when existing IEPs are adequate.
Funding and Financial Considerations for Public School Districts Conducting FIIEs for TEFA Participants
District Compensation
Evaluation Funding: Districts receive $1,000 for each initial evaluation completed under HB 2, including evaluations for children not enrolled in public school.
Purpose: This funding is intended to cover the cost of conducting FIIEs for non-enrolled students and should encourage timely compliance with evaluation requests.
Student Funding Calculations
Additional TEFA Funding Amount: Based on the state special education funding the public school district received (or would have received) for the child in the preceding school year.
For Currently Enrolled Students: Based on actual funding received.
For Non-Enrolled Students: Based on the amount the district would have received from the state special education allotment if the child had been enrolled.
Funding Caps:
Total TEFA funding limited to $30,000 per child with a disability (including base amount)
If the child is homeschooled, total funding is limited to $2,000 per school year
District Reporting Obligations
Districts must upload the following to TEA through a secure web portal:
FIIE evaluation results
EFA IEP information
TEA will then submit this funding information to the Comptroller for payment processing.
Note: The secure portal process is still under development. Additional guidance expected in early 2026.
Anticipated Parent Confusion and District Communication
TEA's Warning to Districts
TEA explicitly anticipates that parents will:
Gain TEFA lottery priority using physician certifications or SSI/SSDI documentation
Present this same documentation to districts expecting to qualify for additional funding
Be surprised when told they must complete the full evaluation process
Recommended District Messaging
When Parents Present Medical Documentation: "We appreciate the documentation you've provided. While this may qualify your child for priority in the TEFA lottery, state law requires a formal school district evaluation and ARD committee process to determine eligibility for the additional funding designated for students with disabilities. We are required to complete a Full and Individual Initial Evaluation (FIIE) and convene an ARD committee to develop an EFA IEP before your child can access those additional funds."
Emphasize:
This is not the district creating barriers; it's an explicit state requirement
Medical documentation will be considered as part of the evaluation
The process follows established IDEA protections and timelines
The district has a legal obligation to complete the evaluation if properly requested
Key Distinctions to Communicate
Purpose | Documentation Required | Who Determines |
Lottery Priority | Physician certification, SSI/SSDI letter, OR IEP | Comptroller/CEAO |
Base TEFA Funding | Acceptance into the program | Comptroller/CEAO |
Additional Disability Funding | District FIIE + ARD determination + EFA IEP | School District |
Operational Guidance for Districts
Preparing for Increased Evaluation Requests
Immediate Actions:
Review and update evaluation procedures to ensure compliance with timelines
Train evaluation staff on EFA IEP requirements once final rules are published
Develop communication protocols for parents of non-enrolled students
Establish tracking systems for evaluation requests from non-enrolled students
Prepare budget projections based on anticipated evaluation volume
Capacity Planning: Consider the potential volume of evaluation requests:
TEFA applications open early 2026
Lengthy evaluation timeline means requests should be submitted now
Districts may see requests from both current private school families and families considering enrollment
Documentation and Record-Keeping
Critical Records to Maintain:
Written requests for evaluation (with dates)
Timeline tracking for all required deadlines
Documentation of outside materials considered
ARD committee meeting documentation
Completed EFA IEPs
Portal submission confirmations (once available)
Compliance Monitoring: Establish internal review processes to ensure all timelines are met. Remember: parents maintain full IDEA dispute resolution rights, including due process complaints.
ARD Committee Considerations
Committee Composition: Standard ARD committee requirements apply, even though the child is not enrolled in the district.
Meeting Logistics:
Parents of non-enrolled students must be invited and given the opportunity to participate
All procedural safeguards apply
The committee must determine both eligibility and the appropriate instructional arrangement code
Decision-Making: The ARD committee must:
Review FIIE results
Determine if child has an IDEA-eligible disability
Determine if child needs special education and related services
If eligible, develop the EFA IEP with the required components
Establish the instructional arrangement code for funding calculations
Rulemaking and Timeline for Final Guidance
Current Status
The November 20, 2025 TEA correspondence is interim guidance because:
TEA's formal rulemaking process is ongoing
Comptroller's rules regarding priority documentation are still proposed
The secure portal is still under development
What to Expect
Coming Weeks (Late 2025):
Parent video overview from TEA
Frequently asked questions (FAQ) document
Additional technical assistance materials
Early 2026:
Final rule adoption
Secure portal launch and training
TEFA application period opens
First wave of evaluation requests from parents pursuing TEFA
2026-2027 School Year:
TEFA program launches
Districts may see continued evaluation requests as the program matures
Rules Subject to Change
The following are explicitly noted as subject to revision:
Exact contents and requirements of the EFA IEP
Comptroller's final rules on alternative documentation for lottery priority
Secure portal submission procedures and requirements
Specific requirements for when existing IEPs suffice
Questions and Answers for Administrators
Q: What if a parent has a recent private evaluation? Must we still conduct our own FIIE?
A: Yes. While you must consider the outside documentation, and it may help expedite your evaluation, state law requires the district to complete its own FIIE. The multidisciplinary team (MDT) should review the private evaluation as part of the process, but the district retains responsibility for the final evaluation.
Q: Can we charge parents for these evaluations?
A: No. IDEA requires evaluations at no cost to parents. Additionally, districts receive $1,000 per evaluation under HB 2, which is intended to cover evaluation costs.
Q: What if we cannot complete the evaluation within 45 school days?
A: You must complete it within 45 school days after obtaining informed parental consent. If you miss this timeline, parents may exercise their IDEA dispute resolution rights, including requesting an IEE at public expense. Plan evaluation capacity accordingly.
Q: Does the child need to be present for evaluation if they're not enrolled in our district?
A: Yes, if the evaluation requires direct assessment of the child. The same evaluation procedures apply regardless of enrollment status. You may need to coordinate scheduling with the family and potentially the private school.
Q: What if the parent disagrees with our evaluation?
A: All IDEA procedural safeguards apply. Parents may request an Independent Educational Evaluation (IEE) at public expense, use mediation, file a state complaint, or request a due process hearing. These rights exist regardless of the child's enrollment status.
Q: Can we decline to evaluate if we believe the child doesn't have a disability?
A: You may determine that an evaluation is not warranted, but you must follow IDEA procedures for declining an evaluation request, including providing prior written notice. Parents can challenge this decision through dispute resolution procedures.
Q: Who attends the ARD committee meeting for a non-enrolled student?
A: Standard ARD committee composition requirements apply:
Parent(s)
Not less than one regular education teacher (if child is/may be participating in regular education)
Not less than one special education teacher
District representative qualified to provide/supervise special education
An individual who can interpret evaluation results (may be another member)
At parent or district discretion, others with knowledge/expertise
The child, when appropriate
Q: What if the child is currently in another state or will be attending private school in another district?
A: Parents may request an evaluation from either the district of residence or the district where the child's eligible private school is located. If the family is moving, they should request an evaluation from the appropriate Texas district based on where they will reside or where the private school is located.
Q: Do we have to implement the services listed in the EFA IEP?
A: No. TEA explicitly states that neither the public school nor the private school has any obligation to implement the services listed in the EFA IEP. The document exists solely to establish eligibility and calculate funding for TEFA.
Q: What happens if a child with an EFA IEP later wants to return to public school?
A: The EFA IEP would serve as documentation that the child has been identified as eligible for special education. However, the district would need to develop a complete IDEA-compliant IEP (including PLAAFP, goals, etc.) if the child enrolls. An ARD committee meeting would be required to develop the full IEP; however, the EFA IEP and evaluation documents must be considered in that process.
Q: How do we determine the instructional arrangement code for a child we've never served?
A: The ARD committee must make this determination based on the FIIE results and the child's identified needs for special education and related services. This requires professional judgment about the level and intensity of services the child needs, which then determines the funding tier. TEA is expected to provide additional guidance on this determination.
Q: Can we count these evaluations toward our Child Find obligations?
A: These evaluations are part of your Child Find obligations. IDEA has always required districts to identify, locate, and evaluate all children with disabilities in the district's jurisdiction, including private school children and homeschooled children.
Q: What if we receive 50+ evaluation requests when applications open?
A: Plan capacity now. With the $1,000 per evaluation funding and the mandatory timelines, districts should:
Assess current evaluation team capacity
Consider hiring additional evaluators or contracting services
Establish triage and scheduling procedures
Monitor request volume and adjust resources accordingly
Q: Are there any data reporting requirements?
A: Yes, districts must upload evaluation and EFA IEP information to TEA through a secure portal. Additional reporting requirements may be established in final rules. The portal and specific reporting procedures are still under development.
Critical Action Items for District Leaders
Immediate (November-December 2025)
Review TEA correspondence and guidance documents with the special education leadership team
Assess current evaluation capacity and timeline compliance
Brief evaluation staff on the new requirements and anticipated request volume
Update internal procedures for tracking and responding to evaluation requests
Prepare communication templates for parents of non-enrolled students
Establish budget tracking for HB 2 evaluation funding
Monitor TEA website for FAQ document and parent video (expected in the coming weeks)
Short-Term (January-March 2026)
Participate in TEA's public comment period on EFA IEP rules
Complete training on final EFA IEP requirements once rules are adopted
Establish procedures for secure portal submission
Develop ARD committee protocols specific to EFA IEPs
Create a tracking system for instructional arrangement code determinations
Review and adjust evaluation capacity based on actual request volume
Coordinate with the PEIMS department on funding calculations and reporting
Ongoing (Spring 2026 and Beyond)
Monitor compliance with evaluation timelines
Track dispute resolution cases related to TEFA evaluations
Submit evaluation and EFA IEP data through the secure portal
Provide regular reports to the superintendent and board on TEFA evaluation activity
Adjust procedures based on experience and additional TEA guidance
Maintain documentation for potential monitoring or audit
Legal and Compliance Considerations
Key Legal Framework
IDEA Requirements: All IDEA procedural safeguards, timelines, and protections apply to evaluations of non-enrolled children, including:
Informed parental consent
IEE rights
SB 2 Requirements: Districts must complete evaluations and develop EFA IEPs for eligible children whose parents are seeking TEFA funding.
Intersection of IDEA and SB 2: SB 2 does not create new evaluation rights; it leverages existing IDEA Child Find obligations to support a new funding program.
Risk Management
Potential Compliance Risks:
Missing evaluation timelines
Failing to consider outside documentation
Inadequate ARD committee documentation
Failure to provide procedural safeguards
Improper denial of evaluation requests
Mitigation Strategies:
Robust timeline tracking systems
Clear documentation of decision-making
Regular staff training on IDEA requirements
Legal review of denial decisions
Prompt response to parent concerns
Resources and Support
TEA Resources
Currently Available:
Coming Soon from TEA:
Parent video overview
FAQ document
Secure portal training and documentation
Additional technical assistance materials
Conclusion
The TEFA program represents a significant operational change for special education departments. While the evaluation and ARD processes themselves are not new, the volume of requests from non-enrolled students and the introduction of the EFA IEP create new administrative demands.
Key Success Factors:
Understand the distinction: Priority documentation ≠ funding eligibility
Plan for capacity: Anticipate increased evaluation requests
Comply with timelines: IDEA deadlines are mandatory
Communicate clearly: Parents will be confused; help them understand the requirements
Document thoroughly: Maintain detailed records of all decisions and timelines
Stay informed: Rules are still being finalized, monitor TEA guidance
Districts that prepare now, establish clear procedures, and allocate appropriate resources will be best positioned to meet their obligations under SB 2 while maintaining compliance with IDEA requirements.
The bottom line for administrators: Your evaluation teams will become critical gatekeepers for a significant new funding stream. Prepare them with the resources, training, and capacity they need to fulfill this role while maintaining compliance with all legal requirements.
If you want expert guidance on navigating SB2's requirements, setting up efficient processes, or identifying ways to participate as an ESA provider, contact us, follow us on Facebook, Instagram, or subscribe to our newsletter for the latest updates and insights.
Last updated: November 20, 2025 | Based on TEA interim guidance | Subject to revision as final rules are adopted
