TEFA School Voucher Final Rules: What Pre-K and Kindergarten Families Need to Know

Part 3 of the TEFA School Voucher Stakeholder Series

Final TEFA school voucher program guidance explains who qualifies for state-funded Pre-K, confirms full funding for approved Pre-K/K programs, and outlines accreditation, program type, and age requirements that determine eligibility.

The Texas Education Freedom Account (TEFA) program extends to children as young as three years old, but not all Texas families with young children qualify, and not all prekindergarten programs receive the same level of funding. The final rules provide critical clarifications about who is eligible for Pre-K participation and which programs qualify for full funding.

Here's what families with young children need to know.

The Most Important Update: Full Funding for Approved Pre-K/K Programs

The single most important clarification in the final rules concerns funding levels:

Children enrolled in an approved private provider of a prekindergarten or kindergarten program are exempt from the $2,000 funding cap and are eligible to receive the full base funding amount.

This is a significant distinction. While homeschooled children and those in non-accredited arrangements are limited to $2,000 per year, a child enrolled in an approved Pre-K or kindergarten program receives the same funding as a child enrolled in an approved private school, 85% of the estimated statewide average amount of state and local funding per student in average daily attendance.

What This Means in Dollars

The difference is substantial:

• Homeschool Pre-K arrangement: $2,000 maximum

• Approved Pre-K/K program: Full base funding (estimated at $8,000-$10,000 or more)

This funding level can make the difference between affording a high-quality early childhood program or having to piece together a budget-constrained alternative.

Not All Families Qualify for Pre-K TEFA Funding

Not all Texas families qualify for Pre-K TEFA funding. Only children who meet specific criteria that would qualify them for enrollment in a free prekindergarten program in public schools are eligible to participate in TEFA as prekindergarten students.

Basic Requirements

Your child must:

• Be between 3 and 5 years of age on September 1 of the following school year

• Meet at least one of the eligibility criteria listed below

Pre-K Eligibility Criteria (Education Code §29.153)

Your child qualifies if they meet any one of the following conditions:

1. Unable to speak and comprehend the English language

2. Educationally disadvantaged (eligible to participate in the national free or reduced lunch program)

3. Homeless (as defined under federal law)

4. The child of an active-duty member of the U.S. armed forces or the National Guard

5. The child of a military member who was injured or killed while serving on active duty

6. Is or ever has been in the conservatorship of the Department of Family and Protective Services (DFPS)

7. The child of a person eligible for the Star of Texas Award as a peace officer, firefighter, or emergency medical first responder

   
   

What This Means

If your child doesn't meet at least one of these criteria, they are not eligible to participate in TEFA for prekindergarten. They would need to wait until they are eligible to attend kindergarten or a higher grade.

Which Pre-K/K Programs Qualify for Full Funding?

Not all prekindergarten and kindergarten programs qualify as approved education service providers eligible for full funding. The final rules specify clear requirements.

Requirements for Approval

A private provider of a prekindergarten or kindergarten program shall be approved as an education service provider if they:

1. Meet the requirements of TEC §29.171 (accreditation standards for private Pre-K programs)

2. Are located in this state (have a physical location in Texas with sufficient Texas resident staff to enable program operations and enforcement)

   
   

What "Located in This State" Means

The final rules added a specific definition requiring:

• A physical location (campus or administrative office) in Texas

• Sufficient staff who are Texas residents

• The ability to enable program operations and audit enforcement

This means virtual-only programs or programs with no physical Texas presence cannot be approved as education service providers, even if they're otherwise qualified.

Education vs. Childcare: An Important Distinction

The Comptroller has emphasized that the program's purpose is to provide educational options rather than childcare services.

What This Means for Funding

Program funds used for Pre-K services are limited to the portion of services that would be eligible for Foundation School Program funding if provided under a contract with a school district.

In practical terms:

• Educational instruction, curriculum, and learning activities are covered

• Purely custodial childcare services are not covered

• Extended-day programs may be partially covered (the educational portion)

When evaluating Pre-K programs, ask providers to clarify which portions of their program are considered educational instruction versus childcare/supervision.

Provider Classification Matters

The final rules made an important classification change: Private providers of PreK/K programs accredited under TEC §29.171 are specifically approved as education service providers (not just vendors).

Why This Classification Is Critical

This classification determines:

• Funding level: Education service providers receive full funding; vendors are subject to limitations

• Approval process: Education service providers must meet specific accreditation and location requirements

• Program scope: Education service providers can offer comprehensive early childhood programs

If you're considering a Pre-K program, verify that it is approved as an education service provider specifically, not just registered as a vendor.

What Can TEFA Funds Cover for Pre-K/K Students?

With full base funding available, families can use TEFA funds for:

Direct Program Costs

• Tuition and fees at the approved Pre-K/K program

• Course-specific fees (for enrichment classes, materials, etc.)

• Application and registration fees

Supplemental Educational Expenses

• Instructional materials required by the program (including digital materials, supplies, and equipment)

• Technological devices required by the program (subject to 10% annual cap)

• Educational therapies or services (to the extent not covered by insurance or government benefits)

• Assessment instruments (if applicable)

What's Not Covered

• Purely custodial childcare

• Transportation (unless it's an approved educational expense)

• Meals

• Non-educational activities

Assessment Requirements for Pre-K/K Students

The final rules do not impose specific annual assessment requirements for prekindergarten students. Assessment requirements primarily apply to students in grades 3-12 enrolled in approved private schools.

However, approved Pre-K/K programs may conduct their own developmental assessments as part of their educational program, and these assessment costs can be covered by TEFA funds.

Special Considerations for Children with Disabilities

If your Pre-K or kindergarten-aged child has a disability, important additional provisions apply.

Enhanced Funding Available

Children with disabilities enrolled in approved Pre-K/K programs are eligible for enhanced funding (up to $30,000 total) if they have a verified IEP, just like older students. Children can be found eligible for special education services starting at age three.

Documentation Requirements

For priority admission and enhanced funding, you'll need:

• Proof of eligibility for special education under 19 TAC §89.1040

• An IEP created by a school district (including out-of-state IEPs) or a Full Individual and Initial Evaluation (FIIE)

Important Notice

Private Pre-K/K programs 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.

This means:

• They are not required to provide IDEA services

• They maintain autonomy over admissions decisions

• They determine their own curriculum and methods

Always discuss your child's needs with prospective programs before enrollment to ensure they can appropriately serve your child.

Comparing Your Options

Families with eligible Pre-K/K students have several options:

Option 1: Approved Private Pre-K/K Program

• Funding: Full base amount (~$8,000-$10,000+)

• For children with disabilities: Up to $30,000 with verified IEP

• Requirements: Must meet accreditation and location standards

• Accountability: Program determines assessment practices

Option 2: Public School Pre-K Program

• Funding: No direct cost to family

• For children with disabilities: IDEA protections and services

• Requirements: Must meet eligibility criteria (same as TEFA)

• Accountability: State accountability standards apply

Option 3: Homeschool Pre-K Arrangement

• Funding: $2,000 maximum

• For children with disabilities: Still limited to $2,000 (cannot access enhanced funding)

• Requirements: None

• Accountability: No mandatory assessments

Option 4: Non-Approved Pre-K Program

• Funding: $2,000 maximum

• Requirements: Program not accredited under TEC §29.171

• Note: You'd pay the difference between tuition and $2,000 out-of-pocket

Next Steps for Pre-K/K Families

1. Verify Eligibility: Confirm your child meets at least one of the TEC §29.153 criteria

2. Identify Approved Programs: Research which Pre-K/K programs in your area are approved as education service providers (the program administrator will publish this list)

3. Ask About Classification: When contacting programs, specifically ask: "Are you approved as an education service provider for TEFA purposes?"

4. Understand the Educational Focus: Ask programs to explain which portions of their day constitute educational instruction versus childcare

5. For Children with Disabilities: Contact your local school district about conducting an FIIE if your child doesn't have an existing IEP

6. Budget Accordingly: Calculate whether the program's total cost is covered by TEFA funding or if you'll need to supplement

7. Review Program Philosophy: Ensure the program's educational approach aligns with your family's values and your child's needs

Why This Matters

Early childhood education sets the foundation for lifelong learning. The final rules' clarification that approved Pre-K/K programs receive full funding, not the $2,000 cap, makes high-quality early learning programs financially accessible to more eligible Texas families.

However, the eligibility criteria mean that TEFA Pre-K participation is targeted to specific populations, primarily those who would qualify for public Pre-K programs. This targeting reflects the legislature's intent to provide educational options to families whose children face specific challenges or circumstances.

If your child qualifies, the funding available through TEFA can open doors to excellent private early childhood programs that might otherwise be financially out of reach.

Next in this series: Private Schools Seeking Approval

Do You Have a Free-Pre-K-Eligible Child and Need Help Navigating the TEFA School Voucher Program?

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