TEFA School Voucher Final Rules: What Tutors, Therapists, and Educational Service Vendors Need to Know
- Accessible Education
- Dec 2
- 8 min read
Part 5 of the TEFA School Voucher Stakeholder Series
The Texas Education Freedom Account (TEFA) program creates opportunities for individual educators, therapists, and specialized service providers to serve participating families. However, the final rules made a critical classification change that affects how you'll participate in the program and what requirements you must meet.
Here's what tutors, therapists, and educational service vendors need to know.
Critical Classification Change: You're a Vendor, Not a Provider
The most important change in the final rules is the reclassification of tutors, therapists, and teaching service employees:
In the proposed rules: These professionals were broadly included in the definition of "Education service provider"
In the final rules: Tutors, therapists, and teaching service employees are explicitly classified as "Vendors of educational products or services" (or simply "vendors")
Why This Classification Matters
This distinction affects:
Your approval process
Registration requirements
How you're referenced in program documentation
Your relationship with participating families
What hasn't changed: Your ability to serve TEFA participants and receive payment for approved educational services.
Who Is Classified as a Vendor?
Under the final rules, the following professionals are classified as vendors of educational products or services:
Educational Service Providers
Tutors providing instructional services
Therapists providing educational therapies (speech, occupational, physical therapy, etc.)
Employees of teaching services who provide educational instruction
Online course or program providers
Academic assessment administrators
Transportation service providers (for educational purposes)
Product Providers
Suppliers of textbooks and instructional materials
Technology and device providers
Curriculum publishers
Educational software companies
Uniform and equipment suppliers
Who is NOT a vendor: Approved private schools and approved private prekindergarten/kindergarten programs are classified as "education service providers," not vendors.
Registration Requirement: Secretary of State
To participate as a vendor, you must be "registered with the secretary [of state] to do
business in this state."
What This Means
If you're operating as:
A sole proprietor using your personal name: You may not need separate business registration, but verify with the Secretary of State
A business entity (LLC, corporation, partnership): You must be registered with the Texas Secretary of State
An out-of-state provider: You must register to do business in Texas
Action Item
Visit the Texas Secretary of State website to:
Verify your current registration status
Complete registration if you haven't already
Understand ongoing compliance requirements (annual reports, registered agent, etc.)
Note: This is different from the "located in this state" requirement for education service providers (private schools/PreK programs), which requires physical presence and Texas resident staff.
Qualification Standards for Educator-Vendors
The final rules revised the language for tutors and teaching service employees to more closely track the statutory requirements.
Who Qualifies as a Tutor or Teaching Service Employee
You qualify if you are:
"An educator employed by or a retired educator formerly employed by":
A school district
An open-enrollment charter school
An accredited private school in this state
An accredited institution of higher education
AND you hold:
A current teaching license or certification issued by the State Board for Educator Certification, OR
A current teaching credential issued by a private school accrediting organization
Key Word: "Current"
The final rules emphasize that your license, certification, or credential must be current. This means:
Active, not expired
In good standing
Renewed according to applicable requirements
Important: If you're a retired educator, your credential must still be current or you must maintain some form of active status recognized by the issuing body.
Therapists and Specialized Service Providers
If you provide educational therapies or specialized services (speech therapy, occupational therapy, physical therapy, educational counseling, etc.), you can serve as a vendor.
Qualification Requirements
While the rules don't specify detailed licensing requirements for therapists in this section, standard professional licensing requirements apply:
Hold appropriate state licensure for your profession
Maintain active, current credentials
Comply with all state regulations governing your practice
Approved Expenses
Families can use TEFA funds for fees for educational therapies or services you provide, but only to the extent the fees are not covered by:
Federal, state, or local government benefits (Medicaid, CHIP, etc.)
Private insurance
What This Means for Your Practice
You'll need to coordinate with families about their existing coverage
Families must exhaust other payment sources first
TEFA funds serve as a gap-filler, not a primary payment source
Clear documentation of what is and isn't covered by other sources is essential
Criminal Background Screening Requirements
All vendors must comply with background screening requirements to ensure child safety:
What's Required
You must ensure that no individual who will interact with a participating child "by reason of their employment" with you has a disqualifying criminal history or has engaged in reportable conduct.
This applies to:
In-person interactions
Online interactions (video tutoring, virtual therapy sessions)
Electronic interactions (email, messaging, learning platforms)
How to Comply
The final rules provide an interim compliance method because the full reportable conduct search engine is not yet operational.
Current requirement: Use the registry established under Education Code §22A.051 (the do-not-hire registry) for screening purposes until the Chapter 810 search engine becomes available.
Who Must Be Screened
Yourself (if you'll interact with students)
Any employees who will interact with students
Any contractors or subcontractors with student contact
Practical tip: If you're a solo practitioner, you'll need to verify your own background check status. If you employ others, you're responsible for screening all personnel with student contact.
Payment to Relatives: Important Clarification
The final rules include a clarification that affects vendors who may be related to participating children.
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
If you operate as:
A corporation or LLC: A participating child can use your services even if you're related to them (within the third degree), because payment goes to the entity, not you personally
A sole proprietor or partner: You cannot provide services to participating children to whom you're related within the third degree
Example Scenarios
Scenario 1: You're an LLC providing tutoring services. Your niece can participate and use your services because payment is to the LLC.
Scenario 2: You're a sole proprietor tutor. Your niece cannot use TEFA funds for your services because payment would be directly to you as an individual.
Action item: If you're a sole proprietor and want flexibility, consider forming an LLC or corporation.
Technological Devices and Equipment
The final rules expanded the scope of technological devices that can be purchased with TEFA funds.
Families can purchase technological devices that are:
Required by you as a vendor, OR
Prescribed by a physician to facilitate the child's education
Subject to: An annual limit of 10% of the total amount transferred to the child's account
What This Means for Your Services
If your tutoring or therapy services require specific technology:
Tablets or computers for online instruction
Specialized software
Adaptive technology for children with disabilities
Recording or assessment devices
Families can use TEFA funds to purchase these items (within the 10% cap) if you require them.
Best practice: Clearly communicate technology requirements to families early in the enrollment process.
Payment System Integration
The final rules mandate that participants purchase approved expenses using a "comptroller-approved payment system."
What This Means for Vendors
You'll need to integrate with or accept payment through the approved system
Direct payments outside the system are not permitted
Cash payments or reimbursements are prohibited
The system should facilitate tracking and compliance
Action item: Once the comptroller announces the approved payment system, familiarize yourself with:
Registration requirements
Payment processing procedures
Fee structures (if any)
Reporting obligations
Online Course and Program Providers
If you provide online educational courses or programs, the final rules include an important change.
"For-credit" requirement removed: The proposed rule required online courses to be "for-credit." The final rule changed this to "Online educational course or program" and removed the credit requirement.
What This Means
Families can use TEFA funds for:
Credit-bearing courses
Non-credit enrichment courses
Supplemental programs
Skill-building courses
Test preparation courses
This significantly expands the market for online education providers.
Suspension and Account Management
Vendor Conduct Issues
If you engage in fraud or violate program requirements, consequences include:
Account suspension: The participating family's account may be suspended if issues relate to their use of your services
District attorney referral: The comptroller must notify the local DA of fraud or "any other violation of law" (the word "substantial" was removed, lowering the threshold)
Permanent removal: Serious or repeated violations could result in your removal as an approved vendor
Best Practices for Compliance
Maintain clear records of services provided, dates, and hours
Document coordination with insurance/government benefits for therapy services
Keep credentials current and provide proof when requested
Screen all personnel with student contact using the do-not-hire registry
Respond promptly to any program inquiries or audit requests
Use only the approved payment system for all transactions
Autonomy Provisions
Like education service providers, vendors are protected by autonomy provisions.
Receiving money from the program does not make you:
A recipient of federal financial assistance on that basis
A state actor on the basis of receiving that money
What This Means
State agencies cannot adopt rules that limit your:
Methods or curriculum choices
Employment practices
Business policies based on your values or philosophy
You retain the freedom to:
Determine your instructional methods
Set your own service policies
Make decisions consistent with your professional judgment and values
Looking Ahead
The reclassification of tutors, therapists, and specialized service providers as vendors rather than education service providers doesn't diminish your importance to the TEFA ecosystem. Many families, particularly those homeschooling or creating customized educational programs, will rely heavily on your services.
The final rules create a clear framework for your participation while protecting your professional autonomy. By meeting the qualification, registration, and screening requirements, you can serve TEFA families while maintaining control over your methods, policies, and business practices.
For many educators and therapists, TEFA represents an opportunity to expand their practice, serve more families, and provide specialized services that might otherwise be financially out of reach for many Texas students.
Interested in Building Your TEFA Practice, But Don't Know Where to Start?
Accessible Education Can Help With Next Steps for Tutors, Therapists, and Vendors
Marketing to Families
Once you're approved as a vendor:
Clarify your qualifications and credentials
Explain what makes your services appropriate for TEFA participants
Be transparent about technology requirements
Discuss scheduling flexibility and availability
Explain your coordination process for insurance/benefits (therapists)
Setting Your Rates
You can set your own rates for services
Be aware that families have budget constraints based on their funding levels
Consider offering packages or flexible scheduling to accommodate different budgets
Remember that homeschooled students are limited to $2,000 annually (your market segment may vary)
Service Quality and Outcomes
While vendors have autonomy, families have choices:
Focus on delivering measurable results
Maintain clear communication with parents
Document student progress
Be responsive to family concerns
Build a reputation for quality service
Next Steps for Tutors, Therapists, and Vendors
Verify or Complete Secretary of State Registration: Ensure you're registered to do business in Texas
Confirm Credential Currency: Verify your teaching license, certification, or professional license is current and in good standing
Complete Background Screening: Use the do-not-hire registry to verify your eligibility and screen any employees
Consider Business Structure: If you're a sole proprietor wanting flexibility to serve relatives, consider forming an LLC
Prepare Service Documentation: Develop clear descriptions of services, qualifications, rates, and requirements
Understand Insurance Coordination: If you're a therapist, establish procedures for documenting what other coverage families have
Plan for Payment System Integration: Stay informed about the comptroller-approved payment system and prepare for integration
Develop Marketing Materials: Create materials explaining your services and qualifications for TEFA families
Set Compliance Procedures: Establish record-keeping and reporting procedures to ensure program compliance
Monitor Program Updates: Watch for announcements about vendor approval processes and requirements
Next in this series: Public and Charter Schools Participating as Vendors
Learn more about our ESA Consulting Services for Tutors, Vendors, and Therapists or request a free consultation.
