TEFA School Voucher Final Rules: What Private Schools Seeking Approval Need to Know
- Accessible Education
- Dec 2
- 9 min read
Part 4 of the TEFA School Voucher Stakeholder Series
The Texas Education Freedom Account (TEFA) program represents a significant opportunity for private schools to serve more families. However, becoming an approved education service provider requires meeting specific accreditation, operational, and location requirements. The final rules provide important clarifications that will affect your approval process and operations.
Here's what private schools need to know about the final rules.
"Shall Be Approved": Stronger Language, Clearer Path
One of the most significant changes in the final rules is the strengthening of approval language from "may be approved" to "shall be approved."
What This Means
If your school meets all the eligibility criteria, the Comptroller must approve your school as an education service provider. This removes discretion and provides certainty: meet the requirements, get approved.
This change signals that the program is designed to be accessible to any private school that meets the statutory standards, not just a select few.
Core Requirements for Approval
To be approved as an education service provider, your private school must meet three fundamental requirements.
1. Accreditation
Your school must demonstrate accreditation by an organization recognized by the Texas Private School Accreditation Commission or the Texas Education Agency.
Critical clarification from the final rules: The Comptroller has explicitly stated that the statute does not permit:
Alternate accrediting bodies not recognized by the Commission or TEA
Participation in the program during the accreditation process
Bottom line: You must have completed accreditation from a recognized organization before seeking approval. Schools working toward accreditation cannot participate yet.
2. Two-Year Continuous Operation
Your school must demonstrate continuous operation of a campus for at least two school years preceding the date you seek approval.
Important clarification in the final rules: The qualifying campus does not need to be located in Texas.
This means:
Schools that operated in other states before relocating to Texas can use that operational history
New Texas campuses of established out-of-state schools can qualify based on their prior campus operations
The requirement focuses on institutional stability, not geographic location
3. Located in This State
Your school must be located in this state, which the final rules define as having:
A physical location in Texas (campus or administrative office)
Sufficient staff who are Texas residents to enable program operations and enforcement
This means:
Virtual-only schools with no physical Texas presence cannot be approved as education service providers
Schools must maintain a meaningful physical presence in Texas, not just a registered agent address
You need enough in-state personnel to facilitate program operations and respond to audits
Note: While the qualifying campus for the two-year operation requirement can be out-of-state, your school entity must currently be located in Texas to participate.
Multiple Campus Operations
If your school operates more than one campus, the final rules provide helpful clarification.
Approval extends to each campus that is:
Operated by your school, and
Covered by the submitted accreditation
What This Means
You don't need separate approvals for each campus
All campuses under your accreditation are covered by a single approval
You must ensure your accrediting body covers all campuses you intend to include
Important Consideration
If you open a new campus after approval, verify that:
Your accreditation covers the new campus
The campus meets all program requirements
You notify the program administrator of the new location
Virtual Campuses Now Explicitly Recognized
The final rules modified the definition of "campus" to explicitly include "a virtual campus" alongside physical buildings and properties.
This recognition means:
Online or virtual schools with a physical Texas presence can qualify
Hybrid models with both physical and virtual components are accommodated
The "reasonably contiguous geographic area" language was removed, providing more flexibility
However: Remember that you must still be "located in this state" with physical presence and Texas resident staff.
Tuition and Fee Flexibility
The final rules provide important clarifications about the pricing structure and what fees are covered.
Differential Tuition Is Permitted
New provision: A private school may charge different standard amounts of tuition and fees for categories of students if those categories are unrelated to program participation.
This means you can have different tuition rates for:
Different grade levels
Different programs (e.g., college prep vs. standard track)
Different student categories based on legitimate educational distinctions
What you cannot do: Charge TEFA participants more than non-TEFA students in the same category.
Expanded Definition of Tuition and Fees
The final rules expanded "tuition and fees" to explicitly include "course specific fees" to the extent they are related to educational instruction.
Examples of covered fees:
Lab fees for science courses
Materials fees for art classes
Athletic program fees (if part of educational instruction)
Music instruction fees
Technology fees required for coursework
What's excluded: Fees that are not related to educational instruction, such as purely social activities or non-educational services.
Employment of Relatives: Critical Clarification
One of the most significant clarifications addresses a concern many schools had about hiring practices:
A payment made to an entity (other than a sole proprietorship or partnership) is not considered a payment to an individual related to the participating child.
What This Means for Your School
TEFA participants can attend your school even if a relative is employed there, as long as payment is made to the school entity (corporation, nonprofit, etc.), not directly to the individual
You don't need to ask about family relationships during hiring
You don't need to exclude otherwise qualified applicants because a relative works at your school
This applies to teachers, administrators, and all staff positions
Exception
This clarification does not apply to:
Sole proprietorships (where the school and owner are legally the same)
Partnerships (where partners receive direct payments)
If your school is structured as a sole proprietorship or partnership, you need to carefully review how this rule affects your operations.
Instructional Materials and Technology
The final rules provide expanded definitions that benefit schools.
Instructional Materials
A new definition clarifies that "instructional materials" includes:
Digital materials
Supplies
Equipment
This broad definition means families can use TEFA funds for a wide range of materials your school requires, not just traditional textbooks.
Technological Devices
The final rules expanded the restriction on purchasing technological devices from items required by "a private school" to those required by "an education service provider or vendor of educational products or services."
This aligns with the broader statutory language and confirms that:
Devices your school requires are eligible expenses
The 10% annual cap still applies
Families can use TEFA funds for required technology
Criminal Background Screening Requirements
The final rules updated background check requirements to reflect current system availability.
Interim Compliance Provision
Because the interagency reportable conduct search engine (Health and Safety Code, Chapter 810) is not yet operational, schools can use the registry established under Education Code §22A.051 (the do-not-hire registry) for screening purposes until the new system is available.
Scope of Interaction
The final rules clarified that the requirement to screen against misconduct applies to each person who will interact with a participating child "by reason of their employment" with your school.
This includes:
In-person interactions
Online interactions
Electronic interactions
Practical application: Screen all personnel who will have contact with students as part of their job duties, regardless of the format of that interaction.
Electronic Verification
The final rules authorize electronic verification of your school's accreditation status.
This means:
The approval process should be faster
You may not need to submit paper documentation if your accreditation can be verified electronically
Renewal processes should be more streamlined
Your Autonomy Is Protected
The final rules include important language protecting your school's operational independence.
What Receiving TEFA Funds Does NOT Make You
Receiving money from the program does not make your school:
A recipient of federal financial assistance on that basis
A state actor on the basis of receiving that money
What This Means
The state cannot adopt rules that limit your school's:
Methods or curriculum
Admissions and enrollment practices
Policies and standards
Employment practices based on religious or institutional values
You retain the right to:
Maintain your religious or philosophical character
Set admissions standards and enrollment policies
Determine curriculum and instructional methods
Make employment decisions consistent with your mission
Important Note for Families
While you retain autonomy, you must provide participating families with a notice stating that:
Your school is not subject to federal and state laws regarding educational services to children with disabilities in the same manner as public schools
The notice must include information about the rights children would have under IDEA if attending public school
Assessment Requirements
Private schools must administer annual assessments to participating students in grades 3-12.
Assessment Options
Nationally norm-referenced tests
Chapter 39 assessments (STAAR)
Alternative assessments for children with disabilities
Sharing Results
The final rules revised the parent's agreement to allow the parent to "provide or authorize and instruct" the assessment administrator to share results with the certified educational assistance organization (CEAO).
This means:
Parents can authorize you to send results directly to the CEAO
You don't necessarily handle the reporting
Clear communication with parents about this process is essential
Payment System and Account Management
Comptroller-Approved Payment System
The final rules changed the required mechanism from a "comptroller-approved marketplace" to a more flexible "comptroller-approved payment system."
Participants must (changed from "may") purchase approved expenses through this system, which means:
You'll need to integrate with the approved payment system
Direct payments outside the system are not permitted
The system should facilitate tracking and compliance
Initial Fund Transfers
The rules clarify that initial payment transfers to participant accounts by July 1 are subject to verification that:
The child remains eligible
Enrollment (if applicable) is confirmed
Practical implication: Ensure you confirm enrollment status early to avoid funding delays for families.
Suspension and Compliance
Account Suspension
If a participating family violates program rules, their account (not the family itself) may be suspended.
Expedited Reinstatement
The final rules allow for account reinstatement "earlier if a response has been received and any corrective action completed" rather than requiring a full 30-day waiting period.
This benefits both schools and families by resolving minor issues quickly.
District Attorney Referral
The requirement to notify the local district attorney was changed to apply to "any other violation of law," removing the subjective modifier "substantial."
What this means: More violations may trigger DA notification, so maintaining clear compliance procedures is essential.
Next Steps for Schools Seeking Approval
Verify Your Accreditation: Confirm your accrediting organization is recognized by the Texas Private School Accreditation Commission or TEA
Document Campus Operations: Gather evidence of continuous operation for at least two school years (can be out-of-state campus)
Confirm Physical Presence: Ensure you have a physical location in Texas with sufficient resident staff
Review Multiple Campus Coverage: If you operate multiple campuses, verify your accreditation covers all locations you want to include
Update Fee Structures: Review your fee schedule to ensure compliance with differential tuition rules
Implement Background Screening: Establish procedures for screening all personnel who interact with students using the do-not-hire registry
Prepare Assessment Systems: Develop processes for administering and reporting required assessments for grades 3-12
Draft Parent Notices: Prepare the required notice about your school's status regarding special education laws
Integrate with Payment System: Prepare to work with the comptroller-approved payment system once it's announced
Review Autonomy Protections: Understand your rights to maintain your mission and values while serving TEFA participants
Looking Ahead: Ready to Position Your School for TEFA Success?
The final rules create a clear pathway for private schools that meet accreditation and operational standards. The strengthened "shall be approved" language, combined with clarifications about campus operations, differential tuition, and employment of relatives, should make participation more straightforward for eligible schools.
Most importantly, the rules protect your autonomy while creating accountability through accreditation requirements and annual assessments. This balance allows you to maintain your school's distinctive mission and character while serving more Texas families.
If your school meets the requirements, TEFA represents an opportunity to expand access to your educational program and serve families who might not otherwise be able to afford private school tuition.
This Is a Historic Moment for Private Schools. Accessible Education Can Help You Make the Most of It.
If you want to participate in the Texas TEFA school voucher program and do it well, the most important work happens now. But preparing for TEFA is detailed work, and many schools don't have extra administrative capacity to take it on.
Accessible Education's ESA Consulting Services help private schools:
Identify approval bottlenecks and fix them before applications open
Prepare required documents to audit-ready standards
Align assessment, reporting, and compliance processes with final rule requirements
Review tuition and fee structures for compliance
Prepare for integration with the comptroller-approved payment system
Strategically expand services for TEFA-eligible funding
Position the school for visibility and enrollment on the TEFA marketplace
Develop internal timelines, workflows, and implementation plans
Train boards and administrators on autonomy rights, assessment rules, and family communication protocols
Advise on processes for multi-campus schools or virtual campuses
Your mission matters, and the families who share your values will be looking for schools like yours. The preparation you begin now will determine whether they can find and choose you when the program launches.
If you're ready to start planning, ask questions, or understand how these requirements apply to your school, we can help.
Let's talk about what strategic, mission-aligned TEFA preparation looks like for your campus.
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Next in this series: Tutors, Therapists, and Educational Service Vendors
