National School Choice Week! Texas Passed School Choice—What’s Next?

Originally published on Substack. 

​Texas finally crossed a long-awaited threshold in 2025 by passing its first Education Savings Account (ESA) law, set to launch in the 2026–27 school year.

For families who have waited years for meaningful school choice, this matters. It opens doors that were previously locked shut by ZIP codes, bureaucracies, and one-size-fits-all systems.

But honesty matters too: this law is not truly universal school choice. It is a beginning—not the destination.

After spending more than $100 billion a year on a government-run K–12 system that delivers poor and uneven results, Texas has acknowledged what parents already know: families deserve options.

Nationally, nearly $900 billion is spent annually on K–12 education, yet student outcomes continue to slide. The latest NAEP results show persistent declines in reading and math proficiency, even after record spending increases documented by EducationData.org.

More money isn’t the answer. Structural change is! Let’s dig in during National School Choice Week.

What Texas Passed—and What It Didn’t

Under SB 2, Texas will create Education Freedom Accounts (often called TEFAs) that allow eligible families to use public education dollars for approved education expenses such as private school tuition, tutoring, online learning, and homeschool materials.

That’s real progress.

But the program is capped at $1 billion (1% of funding on government schools). This will fund at most 100,000 students—just 1.5% of Texas’ 6.3 million school-aged children—and includes income restrictions that exclude many middle-class families.

Meanwhile, students who remain in government schools continue to receive more than $18,000 per year, while most ESA students receive about $10,000 or less.

That’s not a level playing field. It’s a dual-funding system that protects the monopoly while rationing opportunity.

States that have gone further—like Arizona, Florida, Arkansas, and West Virginia—have shown what’s possible. According to the 2025 EdChoice Friedman Index, only those four states offer truly universal ESAs, where every student is eligible and families have real flexibility. Those states are closer to the North Star. Texas is not—yet.

How Families Can Apply (2026–27 School Year)

Even with its limitations, families should prepare now. The application process will be administered through the state, with details centralized at EducationFreedom.Texas.gov.

Here’s a simple checklist to help families get ready:

1. Confirm Eligibility

Students must be Texas residents and meet priority eligibility categories outlined in statute (such as income thresholds or special education status).

2. Gather Key Documents

Have digital copies of:

• Proof of Texas residency
• Student ID or birth certificate
• Prior school enrollment records
• If applicable, disability documentation or income verification

3. Understand Approved Uses

Funds may be used for:

• Private school tuition and fees
• Homeschool curriculum and materials
• Tutoring and academic services
• Online or hybrid programs

A clear family guide is available here.

4. Apply Online When the Window Opens

Applications will be submitted through EducationFreedom.Texas.gov and time-stamped.

5. Prepare for a Lottery

​Because the program is capped, eligible applicants may be entered into a lottery if demand exceeds available slots.

Local reporting, including this KSAT overview, will continue to provide updates.

Why This Still Isn’t Enough

Here’s the uncomfortable truth: limiting ESAs by income and enrollment undermines their effectiveness.

When higher-income families are excluded, programs lose political durability, economic scale, and innovation pressure. The current system already subsidizes affluent families—by default—through fully funded government schools. ESAs simply allow that funding to follow the child instead, often at a lower cost to taxpayers.

Research consistently shows that school choice works. A review of nearly 190 empirical studies summarized in EdChoice’s 123s of School Choice finds strong academic outcomes, higher parental satisfaction, and net taxpayer savings in 87% of fiscal studies. Competition improves outcomes not just for participants, but for students who remain in district schools.

Texas could do even better. A single-pot funding model, where every child receives the same ESA—around $12,000 per student—could cover all 6.3 million Texas students, save taxpayers more than $20 billion annually, and begin lowering school district M&O property tax rates. That’s real reform.

Closing Thoughts

Texas took a step forward in 2025. Families should use this program. Policymakers should learn from it. And everyone should be honest about what comes next.

Education freedom isn’t about tearing down schools—it’s about building a system that finally puts students first. The states leading on universal ESAs are showing the way. Texas can still join them, but only if lawmakers choose competition over protection and families over bureaucracy.

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More eyes mean more pressure—and more freedom for kids who need it most.