ESAs Explained: Resources to Learn & Share

Texas Legislature Passes School Choice

Thursday, April 24, 2025 at 3:45pm, a vote was taken on the Senate Floor to concur with the recommendations from the House to allow the passage of an Education Savings Account in Texas.  Governor Abbott then signed Senate Bill 2 (SB 2) into law on May 3rd. It will take about a year to build the systems and infrastructure needed to launch the program. Families who are accepted can expect to access Education Savings Account (ESA) funds by summer 2026. In the meantime, THSC will continue to advocate for the homeschool community, working to ensure the program is rolled out in a way that supports and protects homeschoolers.

How Does This Affect Homeschooling?

  • Texas homeschoolers can keep homeschooling the same way.
  • Homeschool freedoms as we know them are protected within the bill.
  • There is no testing requirement for homeschoolers. School choice is optional, and the program requirements won’t apply to those who don’t participate.
  • Families who need these opportunities can apply for the program.

WHAT CAN YOU DO NOW THROUGH FALL 2026 TO BE PREPARED?

WHAT TO DO WHY IT MATTERS
Stay Alert This Summer Watch for updates from THSC regarding dates for program application window timelines.
Prepare to Apply THSC will notify members when the windows open.
Continue Homeschooling as Usual Program requirements won’t apply to those who don’t participate.
Stay Engaged THSC will provide ongoing updates via newsletter, webinars, and action alerts—beginning late summer 2025 as well as during the fall and winter.

WHAT DO HOMESCHOOL FAMILIES NEED TO KNOW ABOUT THE SIGNED VERSION OF SB 2?

Under SB 2, all students in Texas are eligible to participate in the program if they apply. However, funding is limited and will only be enough for about 100,000-150,000 of the 5.5 million students in Texas. Also, under SB 2:

  • Participating families will have access to an account managed by the Texas Comptroller’s office. Homeschool families will be allowed to spend up to $2000 on certain educational expenses, including textbooks, special needs therapy, dual credit, and more.
  • The program is opt-in. Only those who apply to participate can do so.
  • The bill includes strong protections for homeschooling ensuring that families retain complete control and freedom over how to conduct their education.
  • There is no testing requirement in the bill for homeschoolers. Although accredited private school students will continue to take the nationally normed assessment currently required for their accreditation.

Under SB 2, all students in Texas are eligible to participate in the program if they apply. However, funding is limited and will only be enough for about 100,000-150,000 of the 5.5 million students in Texas. Also, under SB 2:

  • Participating families will have access to an account managed by the Texas Comptroller’s office. Homeschool families will be allowed to spend up to $2000 on certain educational expenses, including textbooks, special needs therapy, dual credit, and more.
  • The program is opt-in. Only those who apply to participate can do so.
  • The bill includes strong protections for homeschooling ensuring that families retain complete control and freedom over how to conduct their education.
  • There is no testing requirement in the bill for homeschoolers. Although accredited private school students will continue to take the nationally normed assessment currently required for their accreditation.

How Will the Program Work for Families?

Families who choose to participate in the ESA program will:

  1. Apply to the program.
  2. Be selected to receive an ESA.
  3. Receive access to an account with the approved funds.
  4. Use the funds for qualified educational expenses, such as tuition, books, materials, tutoring, dual credit courses, and more.

NOTE: Funding for the program is limited, selection would be limited by available funds.

 THSC’S TOP PRIORITIES FOR ANY SCHOOL CHOICE LEGISLATION

Our goal is to safeguard the interests of the homeschool community while supporting parents who choose to participate in school choice programs. We are working to ensure:

  • Protection for Homeschoolers Who Do Not Participate
    • Homeschoolers who choose not to participate in school choice programs must remain completely free and unaffected by the legislation.
  • Strong Safeguards That Protect Families
    • Families who do choose to participate in school choice programs must have strong protections against government intrusion in their foundational right to educate their children as they see fit.
  • Programs Work for Homeschool Families Who Choose to Participate
    • Programs must include expenditures homeschool families can actually use effectively, such as dual credit courses, tutoring, therapy, books, curriculum, educational supplies, and tests.

Do Other States Have Similar Programs?

Yes. Over 30 states have implemented more than 70 school choice programs over the past several decades.

THSC conducted a 50-state research project to assess the impact of these programs on homeschool regulation.

Our findings? Not a single state has ever experienced an increase in homeschooling regulations as a result of these programs. In several states, regulation actually decreased. You can read our full white paper here.

WHO SUPPORTS ESAs?

School choice programs were a top priority of Governor Greg Abbott, Lt. Gov. Dan Patrick, and Speaker of the House Dustin Burrows, who has homeschooled his own children.

  • A survey from the University of Houston last year found that 65% of Texans support school choice programs.
  • A new survey from January, 2025 also from the University of Houston, found nearly identical results again, putting total support at 67%.
  • A third survey from February 2025 by Yes, Every Kid, also found 67% total support for an ESA program, along with majority support from each political and ethnic demographic surveyed.

Two recent national surveys measured current homeschool opinion on ESAs.

  • One survey from last year found that 84% of homeschool parents nationally expressed support for ESAs.
  • A second national survey by Morning Consult conducted from 2023-2024 found 71% of homeschoolers support ESAs.
  • A Texas-specific survey from 2017 also found 71% support among homeschoolers.

Still Have More ESA Questions? We’ve Got You Covered

School choice/parental choice legislation is a broad term that most often refers to legislation allowing money to follow the child so that a parent whose child is not enrolled in public school can use a portion of the dollars designated for that student on an alternate form of education. These funds are most often used to pay for some form of private education, sometimes even including homeschooling, instead of being spent on the local public school.The idea is that if a student is not in the public school, the money earmarked for that student should follow the student to help fund their alternative style of education.

This means that tax dollars set aside for a child’s public education are made accessible to the parent to “follow the child” and can be used to fund educational expenses related to public, private, or homeschool.

An ESA program is a voluntary program which parents of children not enrolled in public school can opt into. It would place a portion of state funds into a third-party savings account. The account funds can then be sent, as directed by participants, towards private school tuition and approved educational expenses.

A voucher is a payment made directly by the government to a private school for tuition. An ESA gives parents flexibility to spend on a variety of approved educational services and products.

The Texas Comptroller’s Office oversees the ESA program, managing state funds and ensuring they are used properly. The new law, SB2, allows for the Texas Comptroller to approve up to five Certified Educational Assistance Organizations (EAOs) to help manage the ESA program.

EAOs are organizations approved by the Texas Comptroller’s Office to help families and education providers use ESA funds properly.

Think of them as trusted go-betweens that make sure ESA funds are used smoothly and legally — helping the money move from the state to the right places, like tutors, curriculum providers, and schools.

Some EAOs focus on helping parents apply for and manage their ESA accounts. Others work directly with service providers, like co-ops or tutors, to help them get approved for the program.

In short, EAOs are here to help the ESA system run well for both families and education vendors and providers.

Yes, there may be two types:

  • One to assist families with applying and participating in the ESA program.
  • Another to help vendors and service providers apply and deliver their services.

In the event that more than one EAO is selected to provide Program Participant Application Services, all applicants will be combined for the purposes of prioritization and duplicate applications will be eliminated.

Families (program participants) will use an online portal similar to a marketplace to select approved vendors and service providers. The Comptroller’s Office pays the vendors directly; families never handle the funds.

  • Example #1: If a parent wants to use the ESA funds to pay for private school tuition, the parent will use the online platform to select the private school and then the Comptroller’s Office will then send the funds directly to the private school.
  • Example #2: If a parent wants to purchase a curriculum, the parent will use the online platform to select the desired curriculum and the Office sends the funds directly to that curriculum vendor.

Service providers offer services like tutoring, therapy, or teaching.

Vendors provide tangible educational products such as textbooks, uniforms, or software.

Only vendors and service providers registered to do business in Texas and approved by the EAO can participate.

No. ESA funds cannot be used to pay relatives due to a “consanguinity clause” in the law basically meaning a program participant cannot pay a relative.

The application window is expected to open as early as Fall 2025, with the program launching in Fall 2026.

CEAOs must submit a Comptroller-approved marketing plan within 45 days of contract signing. The marketing must support access and enrollment for eligible families.

Additionally, THSC will continue communicating with our families so they will know when the application window opens.

Concerns with Testing Requirements 

There is no testing requirement for homeschool families. Accredited private schools already require testing so there is no change.

Concerns with ESA and UIL

While both SB 2 and SB 401 impact homeschool families, they serve distinct purposes. SB 2 creates the ESA program to fund various educational expenses, while SB 401 focuses solely on allowing homeschool students to participate in UIL activities—an option left to each school district’s discretion.

No, there is no connection between the two programs. When you enroll in the ESA program, no one in the Comptroller’s Office knows that the family has someone participating in UIL activities.

Concerns with Parental Choice/Government Regulation/Homeschool Regulation/Segregation/UIL

No, ESA programs rely on the existing definition of homeschooling in Texas law, which came from the Leeper case, in which the Texas Supreme Court rendered homeschooling in Texas to be legal.

No, the state is prohibited from regulating anything related to a participant’s curriculum, method of instruction, or religious practices.

Homeschool freedoms are protected in three ways.

First, homeschooling freedoms are protected by court precedent from the Texas Supreme Court, such as the Leeper case, and from the United State Supreme Court which prohibits the government from infringing on religious practices in any way through the program. 

Second, due to THSC’s legislative advocacy, Texas state law under the Homeschool Freedom Act of 2025 (HB 2674) now explicitly prohibits any regulation of homeschooling by state agencies, further strengthening legal protections for Texas homeschool families.

Finally, homeschoolers are protected by language used in SB2. The legislation is structured in a way that holds government and third-party contracted organizations on a very tight leash, while letting homeschoolers reign free. All government programs require some level of fraud protections, but those within the ESA program do not inhibit the unprecedented amount of freedom given to program participants. 

In order for any type of regulation to be placed upon homeschoolers, a bill creating this regulation would have to fully pass the legislature and get signed into law by the governor. Harmful legislation is held to the same lengthy process as all legislation is bound to, and is subject to the same accountability and levels of examination.

Yes, participants can opt out at any time. Once opted out, participants aren’t required to repay any funds to the state that were spent on approved expenses before that point, and are completely released from program requirements.

No, this would violate civil rights laws. Parental Choice would actually level the playing field when it comes to education access because lower-income students would suddenly have access to an education other than their local public school.

For additional information regarding the school choice’s effect on segregation and similar concerns, see the following link: https://lawreview.syr.edu/wp-content/uploads/2024/07/Bindas.pdf

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