Strong Demand for Texas School Choice, Limited Access Remains

Estimated Time to Read: 5 minutes

Texas families responded quickly when applications opened for the state’s new Education Freedom Account program, often referred to as TEFA. Within the first five days, roughly 70,000 students applied. That makes this one of the strongest openings for a school choice program anywhere in the country.

To put that in perspective, Texas has about 6.3 million school-age children. Just over 1% of them applied in less than a week. That level of interest matters, especially considering that most families already know the program is limited and that many applicants will not receive an account.

Applications remain open through March 17, and applicants will be notified of funding status beginning in early April. The program is not first-come, first-served, so applying earlier does not improve chances of receiving an account.

The early response sends a clear message. Interest in school choice is high, and that is a good thing.

What the Application Numbers Tell Us

The first wave of applications shows that many parents are actively looking for options beyond traditional public schools. Some families are interested in private schools. Others are looking at homeschooling, tutoring, or blended learning options.

More than 1,700 private schools are currently approved to participate in the TEFA program. That tells us two things. First, families who qualify already have meaningful choices. Second, private schools are willing and able to participate.

It is also important to understand what these numbers do not show. They do not represent everyone who wants school choice. They represent families who believe they might qualify under the current rules. Many families likely chose not to apply at all because they already knew they would be excluded by income limits or funding caps.

In that sense, the demand we are seeing is already filtered. Even so, it is substantial.

Why High Interest Does Not Mean Broad Access

Despite record applications, the number of students who will actually receive an Education Freedom Account is limited. The Legislature capped the program at $1 billion, which means, by generous estimates, only between 70,000 and 100,000 students will be served statewide.

Once different award amounts and prioritization rules are applied, the final number may be lower. As a result, many families who apply will not receive an account, even if they meet eligibility requirements.

This is a key distinction. The program is open to apply, but it is not open at scale. In other words, it is universal in who can submit an application, but it is not truly universal school choice.

That outcome is not accidental. It is the result of how the program was designed.

How This Compares to Funding for Government Schools

Texas spends a significant amount of money on public education. When state funds, local school property taxes, and federal dollars are combined, government schools receive close to $19,000 per student.

That funding is not capped in the same way TEFA is. Government schools continue receiving funding automatically through the existing system, regardless of how many students leave or how satisfied families are.

By comparison, Education Freedom Accounts provide about $10,000 per student and are tightly limited by funding and eligibility rules.

During the most recent legislative session, lawmakers increased spending on government schools by roughly ten times more than the amount allocated to Education Freedom Accounts. They also structured the system so schools are largely held harmless when students leave for a school choice program.

The result is a system where school choice is limited, while the government school system continues to receive increased funding and protection from competition.

Income Limits and Prioritization Shape Outcomes

The program also includes income limits that restrict access. Families earning more than about $165,000 a year are generally not eligible to receive an Education Freedom Account.

That means many families who pay into the education system through taxes cannot use an ESA, even if they believe it would be a better fit for their child. At the same time, those families continue receiving funding indirectly through government schools.

Prioritization rules further shape who receives funding and who does not. Together, these policies ensure that access is limited by design.

Texas Policy Research’s Position

Texas Policy Research (TPR) supports truly universal school choice and believes education funding should follow students rather than automatically flowing to school systems.

That is why TPR ultimately opposed Senate Bill 2 (SB 2) as it was being considered by lawmakers in the 89th Legislative Session (2025). The bill created a limited, capped, and income-restricted program while leaving the broader school finance system largely unchanged. Our opposition was not to school choice itself, but to a structure that expands access for some families while preserving the government school monopoly and shielding it from real competition.

From this perspective, school choice cannot meaningfully take on a monopoly if that monopoly continues receiving increased funding and is protected from enrollment losses.

Key Takeaways for Policymakers

The first week of TEFA applications shows that interest in school choice is real and widespread. That is a positive development.

At the same time, the program is capped by legislative choices. Funding limits and prioritization rules restrict access, even as government schools continue receiving expanded taxpayer support.

If lawmakers want school choice to be more than a limited option, future reforms will need to focus on making it truly universal, allowing money to follow students, and introducing real competition rather than funding both systems at the same time.

Conclusion

Texas families are clearly interested in school choice. The early TEFA application numbers make that plain.

What remains unresolved is whether Texas wants a capped program that serves a small share of students or a universal approach that allows education dollars to follow students and creates meaningful competition.

As applications remain open through March 17, the data will continue to grow. The policy question is not whether interest exists, but whether lawmakers are willing to remove the limits that prevent school choice from reaching its full potential.

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