TEFA School Voucher Final Rules: What Returning Families Need to Know for Future Years
- Accessible Education
- Dec 2
- 9 min read
Part 7 of the TEFA School Voucher Stakeholder Series
The Texas Education Freedom Account (TEFA) program will launch for the 2026-27 school year, with the first cohort of families applying and receiving approval in 2026. While there are no current participants yet, the final rules include important provisions about how the program will work for returning families in subsequent years. If you're planning to participate in TEFA beginning in 2026-27, understanding these future-year provisions will help you plan for long-term participation.
Here's what families should know about how returning participation will work once the program is established.
The Most Important Change: No Annual Reapplication Required
The single most significant provision for returning families is this:
Participating parents in good standing are not required to reapply annually.
Instead, you only need to provide an annual notice of intent to continue participation for the following program year.
What This Means
After your initial application and approval:
No need to complete a full application each year
No need to resubmit all documentation
No need to go through the lottery process again
Significantly reduced paperwork burden
"Good standing" means: You've complied with program requirements, haven't had your account permanently closed, and remain eligible for the program.
How Much Easier Is This?
Compare the two processes:
Initial Application (2026-27 and new applicants):
Complete full application
Submit proof of eligibility (citizenship, income, residency)
Provide disability documentation (if applicable)
Submit to lottery/prioritization process
Wait for approval
Continuing Participation (2027-28 and beyond):
Submit notice of intent to continue
Confirm ongoing eligibility
Update any changed information
Receive continued funding
This streamlined process recognizes that once you've been vetted and approved, annual reapplication creates unnecessary burden.
Annual Notice of Intent: What's Required
While you don't reapply, you must provide annual notice of your intent to continue. The program will establish specific procedures, but expect to:
Confirm Basic Information
Your child remains eligible for the program
Your contact information is current
Your household income (if relevant for prioritization) is updated
Your child's educational arrangement for the coming year
Verify Continued Enrollment (If Applicable)
If your child is enrolled in an approved private school or PreK/K program:
Confirm enrollment for the upcoming year
Verify the school remains an approved education service provider
Update Changed Circumstances
Notify the program of any changes:
Change of residence
Change in household income
Change in disability status (if applicable)
Change in educational arrangement
Timeline: The program will establish deadlines for submitting your notice of intent, likely several months before the new school year, to allow for funding allocation.
Electronic Verification: Streamlined Documentation
The final rules explicitly allow electronic verification of several eligibility requirements, which will make the process even easier for returning families:
What Can Be Verified Electronically
Citizenship or lawful admission status
Total annual income (using sources like Texas Workforce Commission data)
Accreditation status of your child's school
What This Means for You
Rather than gathering and submitting paper documents each year, the program may be able to automatically verify:
That your income remains within program guidelines
That your child's school maintains its approval
That other eligibility factors remain current
This reduces paperwork and speeds up the continuation process.
Waitlist Flexibility for Those Joining Later
If you're not accepted in the initial lottery and are placed on a waitlist, the final rules provide important flexibility for future application periods:
Update vs. Full Reapplication
The program gained flexibility to determine which information from a previously submitted application must be updated and confirmed during a new application period, rather than requiring a full reapplication.
This means if you:
Applied for 2026-27 but were waitlisted
Want to apply again for 2027-28
You likely won't need to start from scratch. Instead, you'll:
Update information that may have changed
Confirm information that remains the same
Supplement with any newly required documentation
Reasonable Deadlines
The program can set reasonable deadlines for waitlisted applicants to:
Accept admission if a spot opens
Update their application for a new period
Confirm their continued interest
Why this matters: If you're waitlisted initially, staying engaged with the process and responding to deadlines will be critical to securing a spot when openings occur.
Initial Fund Transfers: Verification Requirements
The final rules clarify that initial payment transfers to participant accounts by July 1 are subject to verification that:
The child remains eligible for the program
Enrollment (if applicable) is confirmed
What This Means for Returning Families
Even though you don't reapply, funding won't automatically transfer until:
The program verifies you submitted your notice of intent
Eligibility is confirmed (either through your submission or electronic verification)
If enrolled in a school, that enrollment is verified
Action item: Complete your notice of intent promptly each year to avoid delays in funding transfer.
Account Suspension: Understanding the Process
While most families will maintain good standing, understanding the suspension process helps you avoid pitfalls:
What Triggers Suspension
Your account (not you personally, but your funding account) may be suspended if:
You violate program requirements
You fail to comply with accountability measures
Issues arise with how funds are being used
Expedited Reinstatement
The final rules allow for account reinstatement "earlier if a response has been received and any corrective action completed."
This means:
You don't have to wait a full 30-day period
Quick resolution of minor issues is possible
Responding promptly to program inquiries helps
Permanent Closure vs. Temporary Suspension
Important distinction:
Temporary suspension: Your account is frozen while issues are resolved; it can be reinstated
Permanent closure: You're removed from the program; this decision is appealable under TAC §16.409
Most compliance issues result in a temporary suspension with an opportunity to correct. Permanent closure is reserved for serious violations.
Resale Prohibition: Now Indefinite
The final rules changed the resale restriction in an important way:
Proposed rule: Parents agreed not to resell items purchased with program money within 12 months
Final rule: The "within 12 months" limitation was removed, aligning with the general statutory prohibition
What This Means
Items purchased with TEFA funds:
Cannot be resold while you participate in the program
Should be retained for educational use
Are subject to the prohibition indefinitely during participation
Practical implication: Curriculum materials, devices, and supplies purchased with TEFA funds are for your child's educational use, not for resale.
Assessment Results: Streamlined Sharing
For students in private schools (grades 3-12), the final rules revised how assessment results are shared with the certified educational assistance organization (CEAO):
What Changed
The parents' agreement was revised to allow the parent to "provide or authorize and instruct" the assessment administrator to share results with the CEAO.
What This Means
You have two options:
You provide the results: Receive the assessment results and submit them to the CEAO yourself
Authorize direct sharing: Instruct the assessment administrator (your school or testing service) to send results directly to the CEAO
Why this matters: Option 2 reduces your administrative burden. You can authorize your school to handle the reporting rather than managing it yourself.
For Children with Disabilities: IEP Verification Deadlines
If your child has a disability and receives enhanced funding, pay attention to IEP requirements:
Annual IEP Verification Deadline
The program may establish a deadline for the verification of an IEP for the purpose of calculating the enhanced funding amount.
This means:
Each year, your child's IEP must be verified
Deadlines may be set "as early as practicable"
Missing the deadline could affect your funding calculation
Action Item
If your child receives enhanced funding:
Mark IEP verification deadlines in your calendar
Ensure your school district provides updated IEPs promptly
Submit verification documentation early
Don't wait until the last minute
Payment System Requirements
The final rules make clear that participants shall (not "may") purchase approved expenses using the comptroller-approved payment system.
What This Means Moving Forward
All purchases must go through the approved system
You cannot withdraw cash from your account
You cannot receive direct reimbursement
Direct payments to providers outside the system are not permitted
Once the program launches: Familiarize yourself with the payment system early and understand its features, limitations, and processes.
Sibling Priority in Future Years
While not a change in the final rules, it's worth noting that siblings of participating students receive priority in the lottery.
What This Means for Growing Families
If you have:
A child participating in 2026-27
A younger child who becomes eligible in 2027-28 or later
Your younger child will receive priority admission, making it easier to keep siblings in the program together.
Planning for Multi-Year Participation
Understanding these provisions helps you plan for long-term participation:
Year 1 (2026-27): Initial Participation
Complete full application
Submit all required documentation
Participate in lottery
Receive approval and funding
Establish your educational arrangement
Year 2 (2027-28): First Continuation
Submit notice of intent to continue (simplified process)
Update any changed information
Program verifies eligibility (possibly electronically)
Funding continues with minimal paperwork
Year 3+ (2028-29 and beyond): Ongoing Participation
Annual notice of intent continues
Update information as circumstances change
Maintain compliance with program requirements
Benefit from streamlined electronic verification
Planning for Educational Progression
Consider your long-term educational plan:
Will your child remain in the same school/arrangement?
How will funding needs change as your child advances grades?
Are there assessment requirements that begin in 3rd grade?
How will enhanced funding (if applicable) continue to meet evolving needs?
Best Practices for Maintaining Good Standing
To ensure you can take advantage of the simplified continuation process:
1. Maintain Clear Records
Keep documentation of all educational expenses
Save receipts and invoices
Track how funds are used
2. Respond Promptly to Communications
Read all program notifications
Meet deadlines for information requests
Update your contact information if it changes
3. Comply with Accountability Measures
Complete required assessments (grades 3-12 in private schools)
Share results as required
Participate in any program evaluations
4. Use Funds Appropriately
Purchase only approved expenses
Use the approved payment system
Don't attempt to circumvent restrictions
5. Stay Informed
Monitor program announcements
Understand any rule changes
Ask questions if uncertain about requirements
What If Your Circumstances Change?
Life circumstances change, and the program accommodates various scenarios:
Changing Schools or Arrangements
If you want to:
Switch from one approved private school to another
Move from private school to homeschooling (or vice versa)
Change PreK/K providers
You can generally do so, though funding amounts may change (e.g., moving from an approved school to homeschool triggers the $2,000 cap).
Moving Within Texas
If you move to a different location in Texas:
Update your address with the program
Your participation continues
You may access different schools/services in your new area
Income Changes
If your household income increases beyond 500% of federal poverty guidelines:
You may lose priority status
But you don't lose participation (eligibility extends to families at any income level after initial admission)
Disability Status Changes
If your child's disability status or IEP changes:
Update the program with new documentation
Enhanced funding may be adjusted based on the updated IEP
Maintain communication with your school district about IEP updates
Appeals Process for Permanent Account Closure
While hopefully you'll never need it, understand the appeals process:
If your account is permanently closed (removing you from the program), this decision is appealable under TAC §16.409.
This means:
You have the right to challenge the decision
A formal appeals process exists
Permanent removal isn't the final word without opportunity to be heard
However, temporary suspensions with opportunity to cure are not appealable; only permanent closure triggers appeal rights.
Looking Ahead: Planning Your TEFA Journey
As you prepare to apply for the initial 2026-27 cohort, keep these future-year provisions in mind:
The Program Gets Easier Over Time
Initial application: Most comprehensive documentation required
Year 2+: Simplified notice of intent process
Electronic verification: Increasingly automated over time
Consistency Benefits You
Maintaining:
The same educational arrangement (if it's working)
Good standing with the program
Timely communication and compliance
Makes each subsequent year smoother and more predictable.
Long-Term Planning Pays Off
Think beyond year one:
What educational path makes sense through high school?
How will your funding needs evolve?
What does success look like across multiple years?
The simplified continuation process rewards families who find an educational arrangement that works and stick with it.
Next Steps Before the Program Launches
While waiting for the 2026-27 application period (slated to open February 2025):
Research Educational Options: Identify approved private schools or plan your homeschool approach
Understand Your Category: Determine if your child qualifies for priority (disability, income, sibling)
Gather Documentation: Start collecting required documents for initial application
Calculate Your Budget: Understand funding levels for your planned arrangement
Connect with Providers: Contact schools or vendors you're considering
Stay Informed: Monitor program announcements about application timelines
Plan Long-Term: Consider your multi-year educational strategy
Final Thoughts
The final rules create a program structure that recognizes the value of continuity in education. By eliminating annual reapplication for families in good standing, the program reduces administrative burden and allows families to focus on what matters: their children's education.
While the first cohort won't begin until 2026-27, understanding these future-year provisions helps you plan for sustainable, long-term participation in TEFA. The simplified continuation process means that once you successfully navigate initial approval, maintaining your participation should become progressively easier each year.
For families committed to alternative educational paths, whether private schools, homeschooling, or customized arrangements, this structure provides the stability and predictability needed to plan your child's educational journey with confidence.
Next in this series: Online Course and Program Providers
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