Education Savings Accounts

The state has budgeted $1 billion, which will serve approximately 90,000 students. The amount available to each student is based on their circumstances:

• Participants choosing a private or Catholic school receive 85% of the estimated statewide average amount of state and local funding per student for the most recent school year, which is approximately $10,000.
• A child with a disability may receive up to $30,000, according to the amount the child’s school district would receive if the child were enrolled in public school, based on the child’s individualized education program (IEP).
• Home-schooled participants receive $2,000.

Student must be a U.S. citizen, national, or lawful resident eligible to attend a Texas public school.

Students attending public schools or charter schools in Texas are not eligible.

If applications exceed the limited number of available ESAs, ESAs will be allocated by lottery.

• Priority group 1 – children with disabilities whose family income is equal or less than 500% of Federal Poverty Guidelines (FPG) (see chart)
• Priority group 2 – children whose family income is equal or less than 200% of poverty guidelines
• Priority group 3 – children whose family income is between 200% and 500% of poverty guidelines
• Priority group 4 – all other eligible children
  • Group 4 prioritizes students switching from public school
  • Funding for group 4 is capped at 20% of the total appropriation in the ESA program

If a child is approved, so are the child’s siblings who applied.

As defined by the State of Texas, a “child with a disability”:

Is not more than 21 years of age and has a visual or auditory impairment that prevents the student from being adequately or safely educated in public school without the provision of special services;

OR

Is at least three but not more than 21 years of age and has one or more of the following disabilities that prevents the student from being adequately or safely educated in public school without the provision of special services:

• physical disability;
• intellectual or developmental disability;
• emotional disturbance;
• learning disability, including dyslexia;
• autism;
• speech disability; or
• traumatic brain injury.

• Tuition and fees for a private school, higher ed provider, online educational course or program, or a program that provides industry-based credential approved by TEA.
• Costs of breakfast or lunch provided during the school day by a private school.
• Purchase of instructional materials or uniforms.
• Fees for classes provided by a public school.
• Costs related to academic assessments.
• Fees for private tutor or teaching service.
• Fees for transportation provided by a fee-for-service transportation provider.
• Fees for educational therapies or services not covered by government benefits or private insurance.
• Costs of computer hardware and software and other technological devices required by a provider or prescribed by a physician (not to exceed in any year 10% of the total amount in the child’s ESA for the year).
• Money may not be used to pay any person related to a program participant within the third degree of consanguinity.

1. Parents must agree to:

• Spend program money only for eligible expenses
• Share child's assessment results with EAO
• Not sell an item purchased with program money and
• Notify the EAO with in 30 days of child enrolling in public school, graduating high school, or otherwise becoming ineligible to enroll in public school

• The parent of a child not enrolled in public school may request a school district evaluate a child for determining eligibility for special education services and participation in the ESA program as a child with a disability. If the child is eligible, the school district must develop an Individualized Education Program (IEP) for the child.
• The certified education assistance organization (CEAO) must provide notice to parents that a private school is not subject to federal and state laws regarding the provision of educational services to a child with a disability in the same manner as a public school.
• The CEAO must provide information regarding the rights to which a child with a disability is entitled if the child attends a public school.

• A public school must provide records to the parent of a child seeking to participate in the ESA program or to a private school at the parent’s request.
• A school district, TEA, or charter school must provide information to the CEAO to verify a child’s eligibility to participate in the ESA program.
• The CEAO may not retain information beyond the period necessary to determine eligibility.
• The CEAO must comply with confidentiality laws and may not sell or distribute information without a participant’s consent.

1.A provider of supplemental special education services previously approved by TEA.

2. A private school:

• accredited by TEPSAC or TEA and
• annually administers a nationally norm-referenced assessment in grades 3-12 and
• has continuously operated a campus for at least two school years preceding the date the school seeks approval to participate in the program.

3. A school district or charter school accredited by TEA and able to provide services or products to participating children in a manner that the children are not counted toward average daily attendance.

4. A private tutor, therapist, or teaching service employee who:

• is an educator employed by or a retired educator formerly employed by a school accredited by TEA, or an organization recognized by TEA or TEPSAC or
• holds a relevant license or accreditation by a state, regional, or national certification or accreditation organization or
• is employed in or retired from teaching or tutoring capacity at a higher education provider and
• has provided a national criminal history record information review to the comptroller and is not on the Do Not Hire registry.

5. A higher education provider that demonstrates nationally recognized postsecondary education accreditation.

• An education service provider or vendor who receives ESA money is not a recipient of federal financial assistance and may not be considered a state actor.
• The state may not impose limits or requirements contrary to religious or institutional values of a provider, vendor, or participant regarding curriculum, admissions practices, operations, policies, standards, etc.

• Quarterly transfers into ESA accounts will be made on the first day of July, October, January, and April.
• If a child enrolls in the program after the beginning of the school year, the amount transferred is prorated based on the date of enrollment.
• Any money remaining in a participating child’s account will be carried over to the next fiscal year.
• Transfers to an account are not considered taxable income unless otherwise provided by federal or another state’s law.