Private school vouchers are now law in Texas. Here’s how they will work.

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.

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.

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 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.

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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