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The Texas Education Freedom Accounts (TEFA) program was created by Senate Bill 2 during the 89th Texas Legislative Session in 2025 and represents the state’s first Education Savings Account-style school choice initiative. Beginning with the 2026–27 school year, eligible families may receive up to $10,000 per student per year to spend on approved education expenses, including private school tuition, homeschooling materials, tutoring, and other education services.
Under statute, the Texas Comptroller of Public Accounts is charged with establishing, administering, and enforcing the program. This responsibility includes approving education service providers and vendors, adopting rules for participation, and ensuring compliance with applicable law.
As implementation approaches, questions have arisen regarding how eligibility determinations should be handled when participating schools may implicate laws unrelated to education policy itself.
Concerns Raised Ahead of the TEFA Application Process
On December 12, 2025, Acting Comptroller Kelly Hancock (R) formally requested an expedited Attorney General opinion seeking clarity on whether certain private schools could be legally disqualified from TEFA participation due to potential ties to designated terrorist organizations or foreign adversaries.
In his request letter, Hancock outlined two categories of concern. First, his office identified prospective TEFA applicants accredited through a Texas Private School Accreditation Commission-approved agency that operate at addresses which have hosted publicly advertised events organized by the Council on American-Islamic Relations (CAIR). Governor Greg Abbott (R) had previously designated CAIR as a foreign terrorist organization and transnational criminal organization under Texas law.
Second, Hancock cited information suggesting that another Cognia-accredited school may be owned or controlled by a holding group linked to individuals associated with the Chinese communist government. He noted that these circumstances could implicate recently enacted Texas laws restricting property ownership, control, and financial influence by foreign adversary entities.
Cognia is a national nonprofit accreditation organization that evaluates public and private schools based on governance, instructional quality, and operational standards. In Texas, Cognia is one of several accrediting bodies approved by the Texas Private School Accreditation Commission, and Cognia accreditation is often used as a threshold requirement for participation in state programs such as the Texas Education Freedom Accounts. Accreditation by Cognia signifies that a school meets baseline educational and organizational standards, but it does not address compliance with other state or federal laws that may affect program eligibility.
The Comptroller emphasized that the TEFA statute contains an “other relevant laws” provision and that eligibility determinations under that clause could carry significant statewide implications. He requested formal legal guidance to ensure uniform enforcement and legal certainty before applications open for the 2026–27 school year.
What the Attorney General Opinion Does and Does Not Decide
Texas Attorney General Ken Paxton (R) issued an opinion on January 24, 2026, providing legal clarification regarding the administration of the TEFA program while deliberately avoiding factual or eligibility determinations about any individual school.
The opinion confirms that the Legislature vested the Comptroller with exclusive authority to establish and administer TEFA. This authority includes adopting rules, approving education service providers and vendors, and making factual findings related to eligibility. The Attorney General explains that his office may offer legal guidance but cannot resolve disputed or unexplored factual questions through the opinion process. Determining whether a specific school meets eligibility requirements, therefore, remains solely the responsibility of the Comptroller.
The opinion also interprets the statute’s reference to “other relevant law,” a phrase that appears multiple times in the Education Code but is not expressly defined. Based on the statutory context, the Attorney General concludes that this provision incorporates existing laws governing the lawful operation of entities receiving TEFA funds. These include laws prohibiting material support to foreign terrorist organizations as well as laws restricting ownership, control, or financial influence by designated transnational criminal organizations or foreign adversaries.
If a provider or vendor violates such laws, the opinion explains, it may be rendered ineligible to participate in TEFA under Education Code section 29.358(h)(2). Whether those violations exist in any particular case, however, is a factual question that must be investigated and decided by the Comptroller’s Office.
The opinion further outlines the administrative tools available to the Comptroller in carrying out these responsibilities. Under the TEFA statute, the Comptroller may request information to verify eligibility, conduct audits, suspend or revoke participation for failure to comply with applicable law, and recover improperly distributed funds. The Legislature also authorized the Comptroller to engage third-party auditors and consultants to assist with oversight and compliance.
Finally, the opinion makes clear that decisions regarding the timing of provider approvals, including delays unrelated to the specific concerns raised in the request letter, fall within the Comptroller’s statutory authority. The Office of the Attorney General does not control eligibility determinations or approval timelines and does not substitute its judgment for that of the program administrator.
Public Response and Legal Framing
The Attorney General’s opinion prompted immediate public reaction and competing legal interpretations from state officials, advocacy groups, and media outlets. While the opinion itself focuses narrowly on statutory authority and administrative responsibility, much of the public discussion has centered on broader constitutional and policy implications, particularly as they relate to religious liberty and equal treatment under the law.
Religious Discrimination and First Amendment Claims
Following the release of the opinion, some advocacy groups and commentators raised concerns that excluding or delaying approval of certain schools based on associations or hosted events could raise constitutional issues, including claims related to religious discrimination and First Amendment protections.
The opinion itself does not address constitutional claims directly. Instead, it focuses on statutory interpretation and administrative authority, leaving any constitutional challenges to be resolved through litigation if disputes arise.
State Position on Taxpayer Protection
In announcing the opinion, the Attorney General framed the issue as one of taxpayer protection, stating that Texas tax dollars should not be used to support institutions illegally tied to terrorists or foreign adversaries. The accompanying press release emphasizes that the Comptroller possesses full statutory authority to prevent misuse of TEFA funds and that the Attorney General’s office stands ready to defend lawful determinations made under that authority.
Conclusion
As Texas prepares to implement its first Education Savings Account program, the recent Attorney General opinion provides legal clarity on the respective roles of the Comptroller and the Attorney General. The opinion reinforces that eligibility decisions under TEFA are administrative determinations grounded in statutory authority and compliance with applicable law.
While public debate has focused on the broader implications of the opinion, its immediate effect is procedural. It confirms who decides eligibility, how existing laws may apply, and where responsibility lies as the TEFA program moves toward its first application cycle, which begins in February 2026.
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