Texas ESA Program Guide for Public School Officials: Key Responsibilities and Opportunities

Check out our full coverage for the latest TEFA/ESA program updates.

In our ongoing series covering Texas Senate Bill 2 and the Education Savings Account Program, we've explored the law's basics, examined the controversy and impacts on public schools, detailed the role of Certified Educational Assistance Organizations (CEAOs), and mapped out the critical timeline ahead. We've also covered what private schools need to know, with additional posts planned for other education providers, parent timelines, and specifics around students with disabilities. This comprehensive guide for public school officials represents the first time this scattered information has been pulled together from the various sources available to us now, including the legislation itself, RFP documents, and agency responses.

SB2 brings both challenges and opportunities—Texas districts can generate supplemental revenue through ESA services while navigating new administrative requirements.

However, as we've noted throughout this series, the official and final rules from the Comptroller are not due until May 15, 2026, yet districts will begin encountering ESA program activities in Fall 2025 when applications open and provider preparation begins. This creates a challenging timeline where districts must ready themselves for program interactions before the complete regulatory framework is finalized. The information presented here may be subject to changes and adjustments as implementation details are refined.

The Texas Education Savings Account Program will create new responsibilities for public school districts and charter schools beginning in Fall 2025. While these requirements represent additional administrative work, the program also opens opportunities for districts to generate supplemental revenue by serving ESA families.

New ESA Administrative Responsibilities for Districts

Data Provision Requirements for ESA Eligibility

Public school districts must provide information to Certified Educational Assistance Organizations (CEAOs) as necessary to verify a child's eligibility for the program. This includes:

• School enrollment status: District or open-enrollment charter school enrollment verification

• ADA counting status: Whether the child would be counted toward the school's average daily attendance for Foundation School Program funding (SB2 Sec. 29.369(b))

• Lottery prioritization data: Information provided to the Texas Education Agency (TEA) for lottery determinations (SB2 Sec. 29.356(j) and RFP 2.1.1(i))

• Electronic access development: Working with CEAOs, the Comptroller, and TEA to develop secure electronic access for verifying public school eligibility (RFP 2.1.1(i))

• Student records: Providing copies of a child's school records upon request from parents or prospective parents (SB2 Sec. 29.369(a))

Ongoing Monitoring and Verification of ESA Students

The law requires twice-yearly enrollment verification to ensure ESA participants are not enrolled in a public or charter school:

• Verification schedule: CEAOs and TEA must confirm on October 1 and February 1 of each school year that participating children are not enrolled in a public school (SB2 Sec. 29.362(d) and CPA Response to Q27)

• District data provision: This verification process requires districts to provide enrollment data at these intervals through TEA

• Parent notification requirement: Parents must notify the CEAO within 30 business days if their child enrolls in public school (SB2 Sec. 29.357(a)(4)(A))

Special Education Evaluation Duties for ESA Applicants

If a child is not enrolled in a public school or open-enrollment charter school, parents may request:

• Initial evaluations: A full individual and initial evaluation to determine eligibility for special education services (SB2 Sec. 29.3615(a))

• IEP development: Development of an Individualized Education Program (IEP) if eligible (SB2 Sec. 29.3615(d))

• Evaluation timeline: Evaluations must be completed within 45 school days of parental consent (SB2 Sec. 29.3615(b))

• IEP reporting: School districts are required to provide a child's IEP to TEA upon the agency's request (SB2 Sec. 29.3615(d))

Note: ESA funds for eligible students can be up to $30,000 per school year based on the IEP

ESA Revenue Generation Opportunities for Districts

Becoming an ESA-Approved Education Service Provider

Public school districts and open-enrollment charter schools can be preapproved to provide classes and educational services (without ADA counting). Approved education-related expenses include district-provided classes and services (SB2 Sec. 29.359(a)(3)).

Application Requirements:

Navigating uncharted territory: Texas districts face complex new requirements under SB2's ESA program while positioning themselves to capture emerging revenue streams from ESA familie

• Accreditation by TEA

• Proof services do not count toward ADA

• Compliance with Comptroller's rolling preapproval application process (SB2 Sec. 29.358)

Provider Obligations:

• Follow disbursement schedules

• Accept funds only for approved expenses

• Notify the Comptroller within 30 days if program requirements are no longer met

Additional Funding When ESA Students Return to Public School

If an ESA student re-enrolls in public school:

• The district receives an additional allotment (0.1 × basic allotment) for ADA

• The student is excluded from accountability ratings the first year back (SB2 Sec. 29.3611)

Required ESA Information Disclosures to Families

CEAOs must inform ESA families about differences in student rights between public and private schools, including:

• That private schools are not subject to the same federal and state disability laws

• Rights available to children with disabilities in public schools

• Services and protections provided by the local district (SB2 Sec. 29.367(a) and RFP 2.1.1.3)

ESA Data Reporting and Long-Term Evaluation Requirements

The Comptroller's annual reports will include data broken down by:

• School district of residence

• Campus the child would otherwise attend (SB2 Sec. 29.371 and RFP 2.5(A))

Starting in year five, program evaluation will cover:

• Public school capacity and availability

• Enrollment pattern changes

• Financial and resource impact on districts

Why Early Preparation Matters

Ready or not: Texas school districts must navigate complex data sharing between Public Schools, TEA, and CEAOs while building revenue-generating services—all before final program rules are even released.

Although the final rules will not be released until May 2026, the first ESA applications are tentatively scheduled to open in the Fall of 2025. Districts that wait until the rules are published risk being unprepared when families begin seeking information and when reporting deadlines arrive.

ESA Preparation: Financial and Strategic Steps for Districts

Districts should prepare now by:

• Data systems: Prepare secure data sharing systems with TEA and CEAOs that comply with FERPA and IDEA confidentiality rules

• Service identification: Identifying potential courses or services for ESA families (ensuring ADA rules are met)

• Staff training: Training staff on ESA requirements, special education evaluation duties, and compliance expectations

• Internal procedures: Developing clear internal procedures for data sharing, service provision, and evaluations

• Record-keeping systems: Ensuring data systems can handle TEA reporting requirements for twice-yearly enrollment verification

  
  

These preparations are especially important given that the official and final rules from the Comptroller will not be released until May 15, 2026, leaving limited time to adjust procedures before the program's official launch.

The Bottom Line for District Leaders

The Texas ESA voucher program will create new responsibilities, compliance deadlines, and reporting obligations for public school districts and charter schools. It also presents opportunities to serve students in new ways and generate supplemental revenue.

Districts that wait until after the May 2026 final rules are released will be scrambling to catch up. Those who prepare now by building data-sharing systems, training staff, and exploring ESA-approved service options will be ready to respond quickly and strategically.

This is about more than checking compliance boxes. It is about understanding the rules, anticipating the workload, and positioning your district to both protect its resources and serve its community well. The decisions and preparations you make now will determine how ready you are when the first ESA applications open this fall.

If you want expert guidance on navigating SB2's requirements, setting up efficient processes, or identifying ways to participate as an ESA provider, let’s talk. Have questions about how SB2 might affect your family or educational organization? Contact us, follow us on Facebook, Instagram, or subscribe to our newsletter for the latest updates and insights. Sources:

1. Texas Legislature. Senate Bill 2, 89th Legislature, Regular Session. Texas Capitol. https://capitol.texas.gov/tlodocs/89R/billtext/pdf/SB00002F.pdf

2. Texas Education Agency. Request for Proposals (RFP) No. 304-26-1838AH for Certified Educational Assistance Organization Services for the Texas Education Savings Account Program. 2025.

3. Texas Education Agency. Request for Proposals (RFP) 304-26-1838AH Certified Educational Assistance Organization Services for the Texas Education Savings Account Program: Official Responses to Questions from Potential Respondents and Addendum No. 1. July 18, 2025.

The ESA program represents a significant shift in Texas education. Our goal is to help families and educators make informed decisions with accurate, up-to-date information as this program develops and details continue to emerge from state officials.