TEFA School Voucher Final Rules: What Parents of Children with Disabilities Need to Know
- Accessible Education
- Dec 1
- 5 min read
Part 1 of the TEFA School Voucher Stakeholder Series
The Texas Comptroller has adopted final rules for the Texas Education Freedom Account (TEFA) program, and several critical changes directly affect families of children with disabilities. These updates impact both how you'll apply for priority admission and how you'll access enhanced funding up to $30,000 per year.
Here's what changed and what you need to do.
TEFA Priority Admission: New Documentation Requirements
If your child has a disability, they qualify for the highest priority tier in the application lottery (if your household income is at or below 500% of federal poverty guidelines). However, the type of documentation required to prove disability status has changed significantly.
What's No Longer Accepted
The proposed rules allowed parents to submit:
A written diagnosis from a licensed physician
Supplemental Security Income (SSI) determination letters
Social Security Disability Insurance (SSDI) determination letters
These options have been removed from the final rules.
What's Now Required for Priority Status
To receive priority consideration, you must now provide proof that your child is eligible to participate in a school district's special education program by meeting an eligibility definition described in 19 TAC §89.1040.
This documentation must be:
Submitted in a comptroller-prescribed format
Signed by one or more licensed professionals qualified to attest that your child meets the applicable eligibility definition
Alternative Documentation Accepted
The final rules do accept two additional forms of documentation for prioritization purposes:
An Individualized Education Program (IEP) created by a school district in another state for your child
A Full Individual and Initial Evaluation (FIIE) conducted by a school district
Important: If your child is not currently enrolled in public school and doesn't have an IEP or FIIE, you have the right to request that a school district conduct a full individual and initial evaluation. If your child is determined eligible for special education services, the district must develop an IEP for the purposes of establishing TEFA eligibility.
Enhanced Funding: Understanding the IEP Requirement
Children with disabilities are eligible for significantly more funding than the base amount, up to $30,000 per year. This enhanced funding is calculated as the base amount (85% of the statewide average state and local funding per student) plus the amount your child's prospective school district would receive based on your child's IEP and Chapter 48 funding provisions.
The IEP is Essential
Your child's enhanced funding amount is explicitly tied to having a verified IEP. The Texas Education Agency must verify this IEP to calculate your funding.
New Deadline Provisions
The final rules authorize the program to establish a deadline for IEP verification for purposes of calculating enhanced funding. This means:
The deadline may be set "as early as practicable" to efficiently determine funding amounts
You'll need to ensure your child's IEP is verified early to secure the maximum funding
Missing the deadline could impact your funding calculation for the year
Action Item: Once application periods open, pay close attention to IEP verification deadlines and submit documentation promptly.
What This Means for Your Educational Expenses
Program funds can be used for a wide range of disability-related educational expenses:
Educational Therapies and Services
You can use TEFA funds for fees for educational therapies or services provided by practitioners or providers. However, these funds can only be used to the extent the fees are not covered by:
Federal, state, or local government benefits (such as Medicaid or CHIP)
Private insurance
This means you must coordinate benefits and cannot use TEFA funds for services already covered by other sources.
Technological Devices
Costs for technological devices are approved if they are:
Required by an education service provider or vendor of educational products or services, OR
Prescribed by a physician to facilitate your child's education
These expenses are subject to an annual limit of 10% of the total amount transferred to your child's account for that year.
Alternative Assessments
The final rules explicitly clarify that "assessment instrument or academic assessment" includes alternative assessments administered to a child with a disability. This ensures that children with disabilities have appropriate evaluation options that meet their needs.
Critical Notice About Private School Rights
If you enroll your child in a private school using TEFA funds, you need to understand an important distinction:
Private schools are not subject to federal and state laws regarding the provision of educational services to children with disabilities in the same manner as public schools.
The certified educational assistance organization (CEAO) must post this notice, and private schools must provide it to you. The notice will include information about the rights your child would be entitled to under laws like IDEA if attending a public school.
Private schools retain autonomy to:
Determine their own methods and curriculum
Set admissions and enrollment practices
Establish policies and standards based on their institutional values
This means a private school is not required to provide the same accommodations, modifications, or services that a public school would be required to provide under your child's IEP. You should discuss your child's needs with any prospective private school before enrollment to ensure they can appropriately serve your child.
What Hasn't Changed
Several important protections and provisions remain in place:
Children with disabilities still receive the highest priority tier (when household income qualifies)
The $30,000 maximum funding cap remains
Program funds remain available for a wide range of educational therapies and services
Parents maintain autonomy in choosing appropriate educational settings
Next Steps for Families
Gather Documentation Early: If you don't have an IEP or FIIE, contact your local school district now to request an evaluation
Understand the Timeline: Watch for announcements about IEP verification deadlines once the application period opens
Research Private Schools: If considering private school enrollment, ask detailed questions about how they serve children with disabilities
Coordinate Benefits: Review your current insurance coverage and government benefits to understand which services are already covered
Review Eligible Expenses: Familiarize yourself with approved education-related expenses to plan your budget effectively
Looking Ahead
These rule changes align the TEFA program with established state and federal special education guidelines, creating a more standardized documentation process. While the shift away from medical documentation may require some families to obtain additional evaluations, it ensures that all children with disabilities are assessed using consistent educational standards.
The enhanced funding available, up to $30,000 annually, remains a significant opportunity for families to access specialized services, therapies, and educational supports that meet their child's unique needs.
Next in this series: Families Considering Homeschooling or Non-Accredited Schools
Confused About TEFA School Vouchers or Whether Your Child With a Disability Qualifies?
Get clarity on TEFA school voucher requirements, understand the evaluation process, and get expert help preparing for the next steps. Learn more about our Special Education and Section 504 Advocacy Services or request a free consultation.