Coral Care content is reviewed and approved by our clinical professionals so you you know you're getting verified advice.
Find effective support for developmental delays, quickly.
Concerned about your child's development?
Our free screener offers guidance and connects you with the right providers to support your child's journey.
Texas Education Freedom Accounts (TEFA) is the largest day-one school choice initiative ever launched in the United States. Backed by $1 billion in state funding and created by Senate Bill 2 in 2025, TEFA gives eligible Texas families access to public education dollars they can spend on approved educational expenses outside the traditional public school system — including private school tuition, tutoring, curriculum, and licensed therapy services.
If you are a Texas parent wondering whether TEFA applies to your family, this guide covers everything: how the program works, who qualifies, how much money is available, what it can be spent on, and how to make the most of your funds.
What Is TEFA, Exactly?
TEFA stands for Texas Education Freedom Accounts. It is an Education Savings Account (ESA) program — not a voucher. Under a traditional voucher, the state sends money directly to a school on your behalf. Under TEFA, the state deposits funds into a digital account that your family controls, and those funds can be used to pay for a wide range of approved educational expenses through a supervised marketplace.
The program is administered by the Texas Comptroller of Public Accounts and operated day-to-day by Odyssey, a company that also manages similar programs in Iowa, Georgia, Louisiana, Utah, and Wyoming. Think of it like a prepaid debit card for your child's education, funded by the state. Every purchase is tracked and verified by the system.
How Much Funding Is Available?
The amount your family receives depends on your child's educational setting and disability status.
- Private school students: $10,474 for 2026–27. This represents 85% of the statewide average of state and local per-pupil funding in Texas public schools, as calculated by TEA.
- Children with a qualifying IEP: Up to $30,000 per year. Available to children with an Individualized Education Program on file with the Texas Education Agency (TEA) from a Texas public school district or charter school, whose household income is at or below 500% of the Federal Poverty Level.
- Homeschool families: $2,000 per year.
Unused funds roll over year to year as long as your child remains enrolled in the program. Funds are not taxable under current guidance.
The Priority Tiers
TEFA received more than 274,000 applications in its first year — a national record — far exceeding available funding. A priority lottery determines who is funded, in this order:
- Priority 1: Children with disabilities (IEP on file with TEA) from households at or below 500% of the Federal Poverty Level. Approximately 30,000 families fell into this group in year one. These families also qualify for the $30,000 funding tier.
- Priority 2: Children from households at or below 200% of the Federal Poverty Level.
- Priority 3: Children from households between 200% and 500% of FPL.
- Priority 4: All other eligible families. Funds are unlikely to reach this group in year one.
The state expects to fund all Priority 1 applicants and most Priority 2 applicants. Siblings: once one child in your family is accepted, all siblings you applied for are also accepted.
Who Is Eligible?
Most Texas families with school-age children qualify. Requirements: the child must be a U.S. citizen or lawfully present in the United States, a Texas resident, eligible to attend a Texas public school, and not currently enrolled full-time in a Texas public school or charter school. Children ages 3 through 21 are eligible.
Children as young as age 3 can qualify for pre-K TEFA, provided they meet one of the pre-K eligibility criteria under Texas law — including limited English proficiency, economic disadvantage, homelessness, or military family status.
What Can TEFA Funds Be Spent On?
This is the piece most coverage misses. TEFA is not just about private school tuition. Approved expenses include:
- Tuition and fees at an approved private school, higher education provider, or online program
- Licensed educational therapy services — occupational therapy, speech-language pathology, and physical therapy, explicitly covered under Texas Education Code Section 29.3522
- Tutoring and supplemental instruction from qualified tutors
- Textbooks and instructional materials
- Technology hardware and software (capped at 10% of annual award)
- Transportation to approved education providers
- Meals provided during the school day by an approved private school
Funds cannot be used to pay a family member for services.
TEFA and Therapy: What Families With Special Needs Should Know
For families navigating pediatric therapy — whether for speech delays, sensory processing differences, motor development, or autism — TEFA represents one of the most meaningful funding opportunities Texas has ever offered.
Licensed therapists are explicitly included as approved TEFA service providers under Section 29.3522 of the Texas Education Code, provided they hold valid state licensure or national board certification. This covers:
- Occupational therapists (OTs) helping with sensory processing, fine motor skills, emotional regulation, self-care, and daily living skills. Using TEFA for occupational therapy →
- Speech-language pathologists (SLPs) addressing language delays, articulation, AAC, social communication, and feeding. Using TEFA for speech therapy →
- Physical therapists (PTs) building gross motor skills, balance, coordination, and strength. Using TEFA for physical therapy →
Children with an IEP who receive these services may qualify for up to $30,000 annually. Children without an IEP can still use TEFA for therapy — no IEP, referral, or diagnosis is required to get started. Read more about TEFA without an IEP →
Coral Care is an approved TEFA provider with 200 licensed therapists operating across Texas. We accept BCBS Texas, Baylor Scott & White, and Curative — families can combine insurance and TEFA funds to cover care. Families who start therapy before July 1 arrive at that date with an established therapist relationship already in place. Learn more and get matched →
The Application Process
The 2026–27 application window ran February 4 through March 31, 2026, and is now closed. Award notifications are going out in April 2026, and the first 25% of funds become available July 1, 2026. The next application cycle is expected to open in early 2027.
For future cycles, families apply through the official Odyssey portal at educationfreedom.texas.gov. You will need your child's Social Security number, proof of Texas residency, and — if applicable — IEP documentation on file with TEA to qualify for the enhanced funding tier. The application is not first-come, first-served; timing of submission does not affect priority.
When Are Funds Available?
- July 1, 2026: At least 25% of annual award becomes available
- October 1, 2026: At least an additional 50% available
- April 1, 2027: Remaining funds available
Unused funds roll over at the end of each year as long as your child remains enrolled.
Is TEFA a Voucher?
No, and the distinction matters legally and practically. Under a traditional voucher, the state sends money directly to a school. Under TEFA, funds sit in a supervised account that families spend through the Odyssey marketplace — similar to how an HSA works. Every purchase is tracked. Families cannot redirect funds freely. Providers must be approved participants in the marketplace.
Frequently Asked Questions
The 2026–27 application window closed March 31, 2026. If you applied, award notifications are going out in April via Odyssey. If you missed this cycle, the next window opens in early 2027. In the meantime, your child can start therapy with Coral Care today using insurance or self-pay — and you will be an established family with documented progress when the next cycle opens.
Yes — and this is what we recommend. Families who begin with Coral Care now using insurance or self-pay arrive at July 1 with an established therapist who already knows their child, documented progress, and an active treatment plan. Switching payment to TEFA on July 1 does not disrupt the therapist relationship. Use code TEXASFAMILIES for $100 off your first evaluation.
Yes. Coral Care is registered in the Odyssey TEFA marketplace and will accept TEFA funds starting July 1, 2026. We offer in-home occupational therapy, speech-language pathology, and physical therapy across Texas with 200 licensed providers statewide. Families can also combine TEFA with BCBS Texas, Baylor Scott & White, or Curative insurance.
No. Unused TEFA funds roll over year to year as long as your child stays enrolled in the program. You do not lose money you don't spend in a given year — it simply carries forward into your account for the next year.
TEFA funds are released in three disbursements. At least 25% of your annual award becomes available July 1, 2026. An additional 50% releases October 1, 2026. The remaining funds become available April 1, 2027. Unused funds roll over to the following year as long as your child remains enrolled in the program.
No. An IEP determines your funding tier, not whether you qualify. Without an IEP, your child qualifies for the standard $10,474 tier (private school) or $2,000 (homeschool). With a qualifying IEP on file with TEA, your child may qualify for up to $30,000. Either way, your child can participate in TEFA and receive therapy through approved providers like Coral Care.
Yes. TEFA explicitly covers fees for educational therapies provided by licensed professionals under Texas Education Code Section 29.3522. This includes occupational therapy, speech-language pathology, and physical therapy from providers registered in the Odyssey TEFA marketplace. Coral Care is an approved TEFA provider with 200 licensed therapists across Texas, ready to accept TEFA funds starting July 1, 2026.




