Securing TEFA Funding for Your Family
A practical guide for Texas parents interested in Christian microschools.
Last updated: April 15, 2026
The Bottom Line
The TEFA application window closed on March 31, 2026. Over 130,000 families applied. Award notifications are now being sent out (early April 2026). If you applied, watch for your notification from Odyssey. The next key deadlines are June 1 (select a school to receive funding by July 1) and July 15 (select a school for August school year start).
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
| Date | What Happens |
|---|---|
| Feb 4 – March 31, 2026 | Parent application window (extended from original March 17 deadline) |
| Early April 2026 | First award notifications sent to families |
| June 1, 2026 | Deadline to select a school to receive funding by July 1 |
| July 1, 2026 | First funds begin flowing to student accounts |
| July 15, 2026 | Deadline to select a school to receive funding in time for school start in August |
Critical insight: The application is about establishing your child's eligibility. You do NOT need to select a school when you submit your application — more schools are joining the program daily. You select and confirm your school after you receive your award notification in April. If you've already applied, you can log in to the Odyssey platform to update your child's information.
What Happens Now?
The application window has closed. Here's what to know:
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Award notifications are going out in early April 2026. Check your email and the Odyssey platform for your status.
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You don't need to have picked a school yet. School selection happens by June 1 (to receive funding by July 1) or by July 15 (for August school year start). More schools are joining the program daily.
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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.
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There's no penalty for not using it. If you're 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.
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:
- Students with disabilities (with IEP)
- Households under 200% of federal poverty level
- Households under 500% of federal poverty level
- 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
Now (April 2026) - Award Notifications
- Check for your award notification. Notifications are going out in early April via the Odyssey platform.
- If approved: Begin evaluating your school options seriously. More schools are joining the program daily.
- If waitlisted: Stay patient. Some slots may open as families decline.
April – July 2026
- Visit and evaluate approved schools. This is when you make your actual decision. More schools are joining the program daily.
- Select a school by June 1 to receive funding by July 1, or by July 15 to receive funding in time for the August school year start.
July 1, 2026
- First funds release. Your TEFA account receives 25% of the annual amount.
- 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 applied will be approved. If you were approved, the next step is selecting a school. You have until June 1 to select a school and receive funding by July 1, or until July 15 to receive funding in time for the August school year start. You can always decline if you change your mind.
Resources
Official TEFA Information:
- Texas Education Freedom Accounts Portal — the official application site
- TEFA Parent Application Guide (PDF)
- Texas Comptroller TEFA Program Page
- Texas Comptroller TEFA News
Understanding the Program:
- Texas Policy Research: What Families Need to Know
- Texas Private Schools Association: School Choice Info
- TPSA Family Guide to ESAs (PDF)
- Texas Public Policy Foundation: ESA Updates
For Parents Considering Christian Microschools:
- Starting a Church-Based Microschool (for church leaders, but useful context for parents)
- Prenda Microschools in Texas
This guide is for informational purposes. Always verify current requirements at educationfreedom.texas.gov.