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Securing TEFA Funding for Your Family

A practical guide for Texas parents interested in Christian microschools.

Last updated: January 2, 2026

The Bottom Line​

If there's any chance you want a non-public-school option for Fall 2026, apply for TEFA during the February 4 – March 17, 2026 window. You don't need to have picked a school yet. You don't need to be 100% sure. Applying preserves your options.

What is TEFA?​

The Texas Education Freedom Account (TEFA) is a state-funded Education Savings Account that allows eligible families to use public funds for private education expenses. It launched for the 2026-2027 school year.

Funding amounts:

  • Up to $10,474/year for students enrolled in accredited private schools (including Christian microschools)
  • Up to $30,000/year for students with disabilities (with IEP)
  • $2,000/year for homeschool families (non-accredited options)

Funds are held in a state-managed account and disbursed throughout the school year. Unused funds can roll over to future years.

The Application Timeline​

DateWhat Happens
Feb 4 – March 17, 2026Parent application window (this is the ONLY window for 2026-27)
Early April 2026Award notifications sent to families
Before July 1, 2026Parents confirm enrollment at an approved school
July 1, 2026First 25% of funds released

Critical insight: The February application is about establishing your child's eligibility. You select and confirm your school after you receive your award notification in April. This gives you until July to finalize your decision.

Should You Apply Even If You're Unsure?​

Yes. Here's why:

  1. This is the only window. If you skip the Feb 4 – March 17 application period, you cannot receive TEFA funds for the 2026-27 school year. Period.

  2. You don't pick a school during the application. The application establishes your child's eligibility. School selection happens later, after April notifications.

  3. Once approved, you're in for future years. Families approved in Year 1 can keep their accounts active with an annual "intent to continue" confirmation. Getting in early is valuable even if your plans shift.

  4. There's no penalty for not using it. If you apply, get approved, and then decide to stick with public school, you simply don't use the funds. You report your public school enrollment and the account closes. No penalty.

The right framing: "If you think you might want a Prenda-style microschool, traditional private school, or other non-public option in 2026-27, apply during the TEFA window even if you haven't picked a school yet."

What You'll Need to Apply​

The TEFA application requires documentation proving eligibility:

Required documents:

  • Proof of U.S. citizenship or lawful admission
  • Proof of Texas residency
  • Proof of total annual household income (for prioritization)
  • Agreement to use funds only for approved expenses
  • IEP documentation (if applicable for priority status or increased funding)

You do NOT need:

  • A specific school selected
  • Admission confirmation from any school
  • Proof of enrollment anywhere

Priority Groups​

If more families apply than there are slots available (roughly 90,000 in Year 1), the state prioritizes in this order:

  1. Students with disabilities (with IEP)
  2. Households under 200% of federal poverty level
  3. Households under 500% of federal poverty level
  4. All other eligible students

If you're in a priority group, make sure your documentation is complete and accurate.

What If You Change Your Mind?​

Scenario 1: You apply, get approved, then decide on public school​

No problem. You simply don't use the TEFA funds. You must notify the program administrator (Odyssey) within 30 days of enrolling in a public school. Your account closes, but there's no penalty for having applied.

Scenario 2: You start at a microschool, then switch to public school mid-year​

TEFA funds cannot be used for public school. Once you enroll in a public school, you become ineligible for TEFA going forward. You notify Odyssey, and the account stops being usable.

Scenario 3: You're approved but the microschool you wanted isn't ready​

You have options:

  • Choose a different approved private school
  • Use the $2,000 homeschool option instead
  • Don't use the funds this year (but you'd need to reapply for future years)

How to Think About Christian Microschools + TEFA​

Many families are interested in church-based microschools that may be launching specifically because of TEFA. Here's what to understand:

For microschools to accept TEFA funds at the full $10,474 level, they must:

  • Hold TEPSAC or TEA-recognized accreditation
  • Have operated a campus continuously for at least two years
  • Be registered and approved as a TEFA provider before you confirm enrollment (before July 1)

What this means for you:

  • If a church microschool tells you they'll be TEFA-eligible, ask them to confirm their accreditation status and TEFA provider application status
  • Apply for TEFA anyway—you can always select a different school if your first choice isn't approved in time
  • Some microschool platforms (like Prenda) operate as a single organization with multiple campuses, which qualifies new Texas locations under their existing accreditation (Prenda confirmed approved by Odyssey in January 2026)

Practical Steps for Families​

Before February 4, 2026​

  1. Gather your documents. Citizenship, residency, income, IEP if applicable.
  2. Talk to any microschools you're considering. Ask about their TEFA provider status.
  3. Don't overthink it. If there's any chance you want a non-public option, plan to apply.

February 4 – March 17, 2026​

  1. Submit your TEFA application at educationfreedom.texas.gov
  2. Complete the application accurately. Priority status depends on correct documentation.

Early April 2026​

  1. Receive your award notification.
  2. If approved: Begin evaluating your school options seriously.
  3. If waitlisted: Stay patient. Some slots may open as families decline.

April – June 2026​

  1. Visit and evaluate approved schools. This is when you make your actual decision.
  2. Confirm enrollment at your chosen school before July 1.

July 1, 2026​

  1. First funds release. Your TEFA account receives 25% of the annual amount.
  2. School begins in August.

Frequently Asked Questions​

Do I have to pick a school before I apply?​

No. The February application is about your child's eligibility, not school selection. You select a school after receiving your award notification in April.

What if the microschool I want isn't approved yet?​

You can still apply. If your preferred school isn't approved by the time you need to confirm enrollment (before July 1), you can choose a different approved school or use the homeschool option.

Can I use TEFA for a homeschool co-op or non-accredited Christian school?​

Yes, but at the reduced $2,000/year level, not the full $10,474. The full amount requires enrollment in an accredited private school.

What if I apply and then my family moves out of Texas?​

You'd need to notify the program. TEFA is only for Texas residents.

Can both parents apply if we have joint custody?​

The primary custodial parent (or the parent who claims the child on taxes) should apply. Consult the official TEFA guidance for custody-specific questions.

Is TEFA income-based?​

No, there's no income limit for eligibility. However, lower-income families get priority if demand exceeds supply.

The Key Insight​

TEFA is a lottery in Year 1. Not everyone who applies will be approved. But here's what separates families who benefit from those who don't:

Families who apply preserve their options. Families who don't apply have no options.

Even if you're 60% sure you want a Christian microschool and 40% unsure, apply. You can always decline. You cannot retroactively apply after March 17.

Resources​

Official TEFA Information:

Understanding the Program:

For Parents Considering Christian Microschools:

This guide is for informational purposes. Always verify current requirements at educationfreedom.texas.gov.