Private school vouchers are now law in Texas. Here’s how they will work.
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Gov. Greg Abbott on Saturday signed legislation authorizing a private school voucher program into law, marking the grand finale of an oftentimes ugly conflict that has largely defined Texas politics this decade.
Senate Bill 2 will allow families to use public taxpayer dollars to fund their children’s education at an accredited private school or to pay for a wide range of school-related expenses, like textbooks, transportation or therapy. The program will be one of the largest school voucher initiatives in the nation.
“When I ran for reelection in 2022, I promised school choice for the families of Texas. Today, we deliver on that promise,” said Abbott during the bill's signing before hundreds of applauding supporters gathered outside the Governor's Mansion. “Gone are the days that families are limited to only the school assigned by government. The day has arrived that empowers parents to choose the school that’s best for their child.”
The law will go into effect on Sept. 1, with the program expected to launch in late 2026.
The law’s passage follows years of discord in the Legislature over school vouchers. The Democrats and rural Republicans who fought against it argued that the program would harm already-struggling public schools, a major employer for working families and a resource center for many Texas students — the majority of whom reside in low-income households.
“Remember this day next time a school closes in your neighborhood,” state Rep. James Talarico, D-Austin, said a few hours before at a news conference with other voucher opponents. “Remember this day next time a beloved teacher quits because they can't support their family on their salary. Remember this day next time your local property taxes rise because the state government is not doing its fair share of school funding. And if recession comes and we are forced to make even deeper cuts to public education, remember this day.”
Top Republicans like Abbott and Lt. Gov. Dan Patrick have forcefully rebutted, saying parents needed more schooling options for their children in the face of COVID-19 health restrictions and frustrations with public schools’ efforts to foster a more inclusive environment for all students. They have insisted that a voucher program and the state’s public education system can coexist.
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Those arguments came as voucher programs in other states have largely benefited wealthier families who already had their kids enrolled in private schools and led to disappointing academic outcomes for students.
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Here’s a breakdown of how the program will work.
Families can receive about $10,000 to send their children to private school on taxpayers’ dime
Most participating families will receive an amount equal to 85% of what public schools get for each student through state and local funding — roughly somewhere between $10,300 and $10,900 per year for each child, according to a legislative budget analysis, which included financial projections for the next five years.
Children with disabilities are eligible for the same funding as other students, plus up to $30,000 in additional money, an amount based on what the state would spend on special education services for that student if they attended a public school. Home-schoolers can receive up to $2,000 per year.
The money will flow to families through education savings accounts, which essentially function as state-managed bank accounts. In Arizona, for example, which has a program similar to the one Texas is rolling out, families can make education-related purchases through an online platform by the software company ClassWallet.
Texas will spend $1 billion on vouchers in the first two years, but costs could skyrocket
The state can spend no more than $1 billion on the program during the state’s next two-year budget cycle, which begins Sept. 1, 2025, and ends Aug. 31, 2027.
It is not clear how much the program’s costs will rise after the spending cap expires — lawmakers will likely make that determination in future legislative sessions — but state budget experts predict that the tab could escalate to roughly $4.8 billion by 2030.
Most families can participate, including some of the wealthiest Texans
Almost any school-age child in Texas can apply for and participate in the voucher program, including students already attending private schools. Up to 20% of the program’s initial $1 billion budget could flow to wealthier families who earn 500% or more of the poverty rate — roughly $160,000 or above for a family of four.
Families cannot have their children simultaneously enrolled in the program and a public school. The program excludes students whose parents cannot prove their child is a U.S. citizen. Lawmakers are also considering a bill that would bar the kids of any statewide elected official from signing up for the program.
If public demand for the voucher program exceeds the funding available, it will prioritize applicants in this order:
- Students with disabilities from families with an annual income at or below 500% of the federal poverty level, which includes any four-person household earning less than roughly $160,000
- Families at or below 200% of the poverty level, which includes any four-person household earning less than roughly $64,300
- Families between 200% and 500% of the poverty level
- Families at or above 500% of the poverty level (limited to 20% of the program’s budget)
The voucher program also prioritizes students exiting public schools over kids already in private ones.
The priority system does not guarantee access to the program, however. The legislation does not require participating schools to change their admissions processes, meaning they can still deny entry to any student they determine does not meet their standards. Private schools are also not required to follow state or federal laws regarding accommodations for students with disabilities.
The program launches next year, but other specifics are still unclear
The voucher program will officially launch at the beginning of the 2026-27 school year.
The comptroller — the state’s chief financial officer, who will oversee the program — has until May 15, 2026, to establish the rules and procedures it must follow. In addition to setting up the application process for Texans who want to enroll their children, the finance chief will select up to five organizations that will help Texas administer the program.
Private schools can choose whether they want to participate. The law requires participating schools to be accredited and to have operated for at least two years.
Participating students won’t have to take the STAAR test
Enrolled students must take a nationally recognized exam of the private school’s choosing. Private schools, however, are not required to administer the same standardized tests currently issued to public school kids each year — the State of Texas Assessments of Academic Readiness, or STAAR.
The state must produce an annual report that includes data on participants’ test results, satisfaction with the program, and college and career readiness. It will include information on how the program affects public and private school enrollment. Lawmakers will also get a report every year with demographic data on each participating child, including students’ age, sex, race or ethnicity and zip code.
State officials will also be required to work with a private auditor responsible for helping ensure program participants follow the law. The bill directs the state to suspend the accounts of people not in compliance with the legislation’s guidelines and refer to local authorities any organizations or individuals who use taxpayer funds fraudulently.
Sofia Sorochinskaia contributed to this report.
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Correction, : An earlier version of this story incorrectly stated that Gov. Greg Abbott said, “Today, we deliver on Texas' youth,” during the signing of a school voucher bill. Abbott said, “Today, we deliver on that promise.”
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Jaden Edison
Public Education Reporter
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