Texas launches nation’s largest school voucher program, 95,000 students awarded

Key facts

• 95,644 students awarded Texas Education Freedom Accounts as of May 4.
• Tier 1: 42,644 students with disabilities and siblings from families at or below 500% poverty level ($165,000 for family of four).
• Tier 2: 53,000 students from families at or below 200% poverty level ($66,000 for family of four) selected by lottery.
• 68% of Tier 2 recipients previously attended private school or were homeschooled.
• 36% of Tier 2 recipients are white, 28% Hispanic, 17% Black; Texas public schools are 24% white, 53% Hispanic, 13% Black.
• Families must confirm enrollment by July 15 or funds go to waitlisted students.
• Islamic schools sued Texas leaders for exclusion over unsubstantiated terrorism allegations; comptroller later approved all eligible Islamic schools.
• Next court hearing set for May 8.

Voucher rollout targets low-income and disabled students

Texas has begun awarding nearly 100,000 education savings accounts to families for private school tuition and homeschooling, marking the largest launch of such a program in the United States. Acting Comptroller Kelly Hancock announced on May 4 that more than 53,000 low-income students had been selected through a random lottery, adding to 42,644 students with disabilities and their siblings who received accounts in late April. Families have until July 15 to opt in by confirming their child’s enrollment in a private school or declaring intent to homeschool. If they do not find a suitable option, the funds will be reassigned to students on a waitlist. The program, authorized by Senate Bill 2 signed by Governor Greg Abbott in 2025, allows public funds to follow children to private or home-based education.

Two-tier system prioritizes need and disability

The Texas Education Freedom Accounts are allocated in two tiers. Tier 1, announced April 22, covers students with qualifying disabilities from households earning up to 500% of the federal poverty level — $165,000 annually for a family of four — along with their siblings. Tier 2, distributed by lottery on May 4, serves students from families at or below 200% of the poverty level, or $66,000 for a family of four. State law required the lottery because demand exceeded available funding. Of the Tier 2 recipients, 68% had previously attended a private school or were homeschooled, while 53% of the first batch of Tier 1 invitees came from public schools. The comptroller’s office noted that the numbers released so far do not reflect actual participation, which depends on families confirming enrollment.

Demographic breakdown reveals disparities

Among Tier 2 awardees, 36% are white, 28% Hispanic, and 17% Black, with less than 1% American Indian or Alaskan Native. By contrast, Texas’ 5.5 million public school students are 24% white, 53% Hispanic, and 13% Black. The first batch of Tier 1 students invited in April was 42% white, and more than half came from low-income families. Houston and Dallas lead the state in Tier 2 awards, reflecting the concentration of applicants in urban areas. The program aims to serve about 100,000 children in its inaugural year, with waitlisted applicants eligible if slots open.

Legal challenges over Islamic school exclusion

The voucher program faced a lawsuit from Islamic schools and Muslim families who alleged that Texas leaders excluded them based on unsubstantiated terrorism allegations while accepting hundreds of other non-Islamic schools. The plaintiffs sought an extension of the application deadline, which had closed March 31 after a federal judge denied a second extension request. On March 31, the comptroller’s office announced it had approved all eligible Islamic schools that applied. The next court hearing is scheduled for May 8. The lawsuit’s outcome could affect the program’s implementation and eligibility criteria.

National implications and future outlook

Texas’ program is the largest education savings account initiative in the nation, potentially reshaping school choice debates across the country. Supporters argue it empowers families to choose the best educational setting for their children, while critics warn it could drain resources from public schools and exacerbate inequality. With the July 15 deadline approaching, the comptroller’s office will monitor uptake and adjust the waitlist. The program’s success or failure in Texas could influence similar proposals in other states, making it a closely watched experiment in publicly funded private education.

The bottom line

• Texas awarded nearly 96,000 education savings accounts in two tiers, prioritizing disabled and low-income students.
• Demographics of recipients differ from public school population: more white, fewer Hispanic students in voucher program.
• 68% of Tier 2 recipients already attended private school or homeschool, raising questions about new enrollment.
• Legal challenges over exclusion of Islamic schools continue; court hearing set for May 8.
• Families must confirm enrollment by July 15 or forfeit funds to waitlisted students.
• Program is the largest ESA launch in the U.S., with potential national impact on school choice policy.