Texas Awards More School Choice Accounts to Waitlisted Students

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The Texas Comptroller’s Office has awarded nearly 3,800 additional Texas Education Freedom Accounts (TEFA) to students who were previously placed on the program’s waitlist, bringing total awards to just under 100,000 statewide.

The announcement marks the first significant movement of the waitlist since initial awards were distributed earlier this year and provides new insight into both the demand for school choice in Texas and the operational realities of launching one of the nation’s largest Education Savings Account (ESA) programs.

For families who remained on the waitlist after the initial lottery process, the latest awards represent an opportunity to participate in the program beginning with the 2026-27 school year.

Texas School Choice Waitlist Begins Moving

According to the Comptroller’s Office, 3,317 students were awarded accounts after funding became available when previously selected students either opted out of the program or selected homeschool or other educational options that reduced their award amount from $10,000 to $2,000.

An additional 294 students received awards after special education eligibility information was verified through records maintained by the Texas Education Agency. Combined, the newly awarded students increase total TEFA awards to nearly 100,000.

The Comptroller’s Office reports that approximately 1,400 previously awarded students have opted out of the program, leaving roughly 98,000 active awards. The waitlist remains active, and additional awards may continue to be issued throughout the summer as families decline participation, appeals are resolved, or eligibility determinations are updated.

The movement of the waitlist demonstrates that the first year of TEFA remains a dynamic process rather than a one-time lottery event.

Demand Exceeds TEFA Funding

The latest awards do little to change the broader story surrounding the program. Demand for school choice continues to substantially exceed available funding.

As Texas Policy Research (TPR) previously reported, more than 274,000 applications were submitted for the inaugural year of the program. Even after multiple rounds of awards, a majority of applicants remain without funding. The continued movement of the waitlist demonstrates that interest in educational alternatives remains exceptionally strong across Texas.

Families continue seeking educational options that better align with their individual needs, whether through private schools, homeschooling, specialized instructional models, or other educational environments. The size of the waitlist itself may ultimately become one of the most important indicators of public demand for school choice as lawmakers prepare for future legislative sessions.

New TEFA Data Reveals Who Is Receiving Awards

The Comptroller’s Office also released updated demographic information regarding awarded applicants.

According to the newly released fact sheet, approximately 77 percent of awarded students come from households earning at or below 200 percent of the federal poverty level. The data also shows that approximately 43 percent of awarded students previously attended public schools, while 57 percent came from either private school or homeschool settings.

Looking ahead to the 2026-27 school year, approximately 70 percent of awarded students are expected to enroll in private schools, while roughly 30 percent selected homeschool or other educational options. These figures will likely continue fueling debates over who benefits from school choice programs and how future expansions should be structured.

Texas School Choice and Enrollment Are Separate Conversations

The latest waitlist awards arrive amid broader discussions regarding public school enrollment trends in Texas.

Recently released TEA data showed Texas public school enrollment declined by more than 76,000 students during the 2025-26 school year. However, that decline occurred before TEFA participants begin utilizing funds during the upcoming 2026-27 school year.

As a result, the enrollment changes documented by TEA cannot reasonably be attributed to the school choice program itself. That does not mean the two issues are unrelated.

Instead, both developments highlight a larger reality: Texas families are increasingly exploring educational options beyond the traditional public school system. Some families are choosing private schools, some are homeschooling, some are utilizing charter schools, and others are seeking opportunities through TEFA.

The enrollment decline and overwhelming demand for school choice appear to be parallel indicators of changing educational preferences rather than evidence of a direct cause-and-effect relationship.

Why Universal School Choice Matters

The latest waitlist movement also reinforces a broader point TPR has consistently made through the Texas Liberty Compact.

The creation of Texas Education Freedom Accounts represented a significant policy victory for school choice advocates. However, the current program remains constrained by funding caps, lottery selection, and administrative limitations that prevent many interested families from participating.

More than 274,000 applications were submitted for the program’s inaugural year. Even after multiple rounds of awards, fewer than 100,000 students have received funding.

The result is a system where educational opportunity remains dependent upon available appropriations rather than parental choice alone.

The Texas Liberty Compact calls for truly universal school choice, where education funding follows students rather than institutions and where families are empowered to select the educational environment that best meets their children’s needs. A system built around portability creates stronger incentives for innovation, accountability, and responsiveness across all educational providers. It also reduces the need for waitlists, lotteries, and artificial caps that leave thousands of families without access despite clear demand.

The continued movement of the TEFA waitlist demonstrates that Texas has taken an important first step. It also demonstrates that many families are still waiting for the Legislature to finish the job.

What Comes Next for TEFA

The continued movement of the waitlist is likely to become an important topic when lawmakers return to Austin for the 90th Legislative Session (2027).

Supporters of school choice will likely point to the hundreds of thousands of applications and persistent waitlist as evidence that Texas should expand program funding and move toward a more universal model. Others will continue debating program design, funding levels, eligibility priorities, and the relationship between school choice and traditional public education funding.

For supporters of school choice, the latest round of awards demonstrates both the promise and the limitations of Texas’ current approach. Demand continues to far exceed available capacity, and thousands of families remain on the sidelines waiting for access.

Whether lawmakers choose to expand the program, reform its structure, or move toward a truly universal model where funding follows students will likely become one of the defining education policy debates of the next legislative session.

For now, the latest waitlist awards offer a clear signal: Texas families continue to demand more educational choice than the current system is able to provide.

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