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Texas establishes education savings account program for eligible students starting in 2026

Original title: Relating to the establishment of an education savings account program for certain children.

Last action · March 12, 2025: Referred to Public EducationSponsor: Charles Cunningham

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

The Comptroller of Public Accounts is required to establish an by September 1, 2025, providing funds for private school tuition and other educational expenses for eligible children beginning with the 2026-2027 school year. Eligible participants receive annual payments equal to 90 percent of the per-student amount their local school district would have received under , while the local district retains 10 percent.

Why it matters

Parents of qualifying students with disabilities, educational disadvantages, or academic performance challenges can receive state-allocated funds deposited into managed accounts to pay for private school tuition, textbooks, transportation, and specialized therapies.

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Parents of eligible children

Parents can apply to act as trustees of education savings accounts, receive quarterly state-funded deposits, and direct funds toward approved private education expenses.

Directly affected

School districts

School districts receive 10 percent of the funding amount they would have otherwise been entitled to receive under Chapter 48 for participating resident students.

Directly affected

Private schools and educational vendors

Private schools and vendors can receive program funds for tuition, fees, and educational products without becoming subject to state curriculum modifications or federal financial assistance regulations.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Which children are eligible to participate in the education savings account program?
A child is eligible if they are eligible to attend a public school, either attended a public school during the preceding year or are entering kindergarten or first grade, and meet at least one additional criterion: failing to perform satisfactorily on a state assessment, being a child with a disability, or being .
What expenses can program funds be used to pay for?
Funds can be used for private school tuition and fees, required textbooks and uniforms, academic assessment costs, academic enrichment field trips or activities, transportation fees from fee-for-service providers, and educational therapies not covered by insurance, Medicaid, or CHIP.
How much money does a participating student's account receive?
The account receives an annual payment equal to 90 percent of the funding amount the child's resident school district would have received for that student under of the Education Code.
What happens to leftover money in an account at the end of the fiscal year?
Any money remaining in a child's account at the end of a fiscal year automatically carries forward to the next fiscal year unless the account is closed.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died at adjournment · in House committee.

Procedural history

3 actions
  1. Mar 12, 2025HouseCommittee
    Referred to Public Education
  2. Mar 12, 2025HouseIntroduced
    Read first time
  3. Dec 18, 2024HouseIntroduced
    Filed

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Establishment of Private Education Funding Mechanism

The legislation redirects a substantial percentage of baseline per-student funding formulas to private education accounts managed by the comptroller while retaining a 10 percent share for local public school districts.

Connected Entities

National Credit Union Administration, Charles Cunningham, Federal Deposit Insurance Corporation and 5 more
OrganizationNational Credit Union Administration“Insures deposits for participating credit unions”Map →
PersonCharles Cunningham“Bill author/sponsor in the House”Map →
OrganizationFederal Deposit Insurance Corporation“Insures deposits for participating financial institutions”Map →
OrganizationChildren's Health Insurance Program“CHIP benefits program referenced for therapy exclusions”Map →
OrganizationMedicaid“Government benefits program referenced for therapy exclusions”Map →
OrganizationTexas Education Agency“Reviews and approves or rejects program applications”Map →
OrganizationTexas Private School Accreditation Commission“Accredits private schools recognized under the program”Map →
OrganizationComptroller of Public Accounts“Administers the education savings account program”Map →

Sources

Open source document

capitol.texas.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 90)
  • Controversy85
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz80
    Current news / social attention level

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