TEFA School Voucher Final Rules: What Homeschooling and Non-Accredited School Families Need to Know
- Accessible Education
- Dec 2
- 6 min read
Part 2 of the TEFA School Voucher Stakeholder Series
The Texas Education Freedom Account (TEFA) program offers funding for a wide range of educational arrangements, including homeschooling and various alternative learning models.
However, the final rules make one thing crystal clear: families choosing these options will receive a maximum of $2,000 per year, significantly less than the full funding available to students enrolled in approved private schools.
Here's what you need to know about the funding cap and how it applies to your educational choices.
The $2,000 Funding Cap: Who Does It Apply To?
The statutory funding limitation of $2,000 per school year applies to any participating child who is a home-schooled student as defined by Education Code §29.916(a)(1).
What Counts as "Homeschooling" Under TEFA?
The Comptroller has clarified that this funding cap applies broadly to all educational arrangements where the child is not enrolled in an approved private school or an approved private provider of a prekindergarten or kindergarten program.
This includes:
Traditional homeschooling
Micro schools
Learning pods
Customized educational programs using online courses
Hybrid models combining public school courses with private tutoring
Any other alternative learning arrangement not provided by an approved education service provider
In other words: If you're creating a customized educational experience that doesn't involve enrollment in an accredited, approved private school or Pre-K/K program, you're subject to the $2,000 cap.
What Can $2,000 Buy?
While $2,000 is substantially less than the full funding amount (which equals 85% of the statewide average state and local funding per student), it can still support meaningful educational expenses:
Approved Uses Include:
Curriculum and instructional materials (including digital materials, supplies, and equipment)
Online educational courses or programs (no longer required to be "for-credit")
Tutoring services from qualified educators
Educational therapies provided by practitioners (to the extent not covered by insurance or government benefits)
Fees for classes or services provided by public schools or charter schools (if the child doesn't count toward the school's average daily attendance)
Standardized testing and academic assessments
Technological devices required by a vendor or prescribed by a physician (up to 10% of your annual allocation, which would be $200)
Textbooks and other instructional materials
Educational software and applications
What's Not Covered:
The $2,000 cannot be used for:
Standard tuition and fees at an approved private school (you would need to pay the difference out of pocket)
Non-educational expenses
Items you intend to resell
Cash withdrawals or direct reimbursements
Non-Accredited Private Schools: Also Subject to the Cap
If you're considering enrolling your child in a private school not enrolled as a TEFA provider or one that is not accredited by an organization recognized by the Texas Private School Accreditation Commission or the Texas Education Agency, your child will also be subject to the $2,000 funding cap.
Why Accreditation Matters
To receive full funding as an approved education service provider, a private school must:
Demonstrate accreditation by a recognized organization
Demonstrate continuous operation of a campus for at least two school years
Be located in Texas (have a physical location with sufficient Texas resident staff)
The Comptroller has explicitly stated that the statute does not permit alternate accrediting bodies or participation during the accreditation process.
This means:
A school working toward accreditation cannot yet be approved
A school accredited by a non-recognized organization cannot be approved
Students attending these schools are limited to the $2,000 cap
Important Consideration
If you're interested in a particular private school, verify its approval status before enrollment. Attending a non-approved school, even if it charges full tuition, means you'll only receive $2,000 in TEFA funds and will need to cover the remaining costs out of pocket.
The Accountability Trade-Off
There is one significant benefit to the homeschool classification: no mandatory assessment requirements.
Unlike students enrolled in approved private schools (grades 3-12), homeschooled participants are:
Not required to take annual assessments
Not required to share any assessment results with the certified educational assistance organization (CEAO)
This provides maximum flexibility for families who prefer alternative evaluation methods or who want to avoid standardized testing.
Children with Disabilities: A Critical Limitation
If your child has a disability and you're considering homeschooling or a non-accredited school, you need to understand a significant restriction.
The Comptroller has determined that the statute precludes combining the $2,000 homeschool amount with the additional amounts available for children with a disability.
This means:
Homeschooled students with disabilities are limited to the $2,000 cap
They cannot access the enhanced funding (up to $30,000) available to children with disabilities enrolled in approved private schools
This applies even if your child has a verified IEP and qualifies for special education services
What This Means for Families
If your child has significant educational needs that require specialized services, therapies, or supports, the $2,000 annual funding may not be sufficient to cover these costs. You may want to carefully compare:
The cost of needed services under a homeschool model ($2,000 TEFA funds + your out-of-pocket expenses)
The availability of services at an approved private school (up to $30,000 TEFA funds)
The services available at your local public school (at no direct cost, with IDEA protections)
How Does This Compare to Full Funding?
To put the $2,000 cap in perspective, the full base funding amount equals 85% of the estimated statewide average amount of state and local funding per student in average daily attendance. While the exact amount varies by year, this is typically several thousand dollars more than $2,000.
Example scenario:
Full base funding: ~$8,000-$10,000 (estimated)
Homeschool cap: $2,000
Out-of-pocket difference: ~$6,000-$8,000
If you're planning a comprehensive homeschool program with multiple curriculum subscriptions, online courses, tutoring, and materials, carefully budget to ensure $2,000 will cover your priority expenses.
Making the Choice: Questions to Consider
Before deciding between homeschooling with the $2,000 cap or enrolling in an approved private school with full funding, consider:
What are your total educational expenses? Will $2,000 cover your essential costs?
Does your child have a disability? If so, would the enhanced funding (up to $30,000) at an approved school provide access to needed services?
How important is educational flexibility? Are you willing to accept the funding cap in exchange for complete autonomy over curriculum and assessment?
Are there approved private schools that align with your values? Some approved schools offer classical education, religious instruction, or alternative pedagogies.
What's your long-term plan? Will you homeschool through high school, or might you transition to an approved school in later grades?
Your Educational Freedom Remains Intact
It's important to understand that this funding cap does not restrict your right to homeschool. Texas families have always had the freedom to provide home-based education, and that hasn't changed.
The TEFA program simply provides financial support for your educational choices, with the funding level varying based on the type of educational arrangement you select.
You can:
Homeschool with $2,000 in TEFA support
Homeschool without participating in TEFA at all
Enroll in an approved private school for full funding
Create a hybrid arrangement that works for your family
The choice is yours.
Next Steps for Families
Calculate Your Budget: List all anticipated educational expenses and determine if $2,000 will meet your needs
Research Approved Schools: Even if you're leaning toward homeschooling, investigate whether any approved private schools offer programs that align with your educational philosophy
Consider Your Timeline: If your child has special needs, compare the three-year cost of homeschooling ($6,000 total) versus private school enrollment (up to $90,000 total for a child with disabilities)
Review Eligible Expenses: Familiarize yourself with all approved educational expenses to maximize your $2,000 allocation
Plan for Supplementation: Identify which educational expenses you'll need to cover out-of-pocket beyond the $2,000
Looking Ahead
The $2,000 funding cap reflects a legislative choice to provide enhanced support for enrollment in accredited, accountable educational institutions while still offering some financial assistance to families who prefer alternative arrangements.
For many homeschooling families, $2,000 will provide meaningful support for curriculum, materials, and enrichment activities. For others, particularly families of children with disabilities or those pursuing expensive specialized programs, the cap may influence the decision about which educational model best serves their child's needs.
The most important thing is that you have the information you need to make an informed choice for your family.
Next in this series: Pre-K and Kindergarten Families
Have Questions About What TEFA School Voucher Program Means for Homeschooling Families?
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