What to know before applying for Texas’ education savings accounts next year

Zooming in

Depending on a family’s income, students with disabilities may receive priority acceptance into the ESA program. To be first in line for the program, families may submit a letter from a licensed physician or documentation stating that the child qualifies for federal disability benefits from the U.S. Social Security Administration.

To receive up to $30,000 in special education funding, however, the comptroller’s office said a student must undergo a special education evaluation and receive an individualized education program, or IEP. According to the Texas Education Agency, an IEP is a written plan that details a student’s educational needs and the resources or services required to help meet those needs. IEPs are typically completed by public school districts.

If applications for the program outpace available funding, state law requires that Odyssey and the comptroller’s office prioritize students in the following order:

• Students with disabilities whose annual household incomes are at or below 500% of the federal poverty line, or about $160,000 for a family of four
• Families with incomes at or below 200% of the FPL, which is about $64,000 for a family of four
• Families earning between 200%-500% of the FPL
• Families above 500% of the FPL—limited to 20% of total program funding

Texas private schools are not required to participate in the ESA program. Participating schools also do not have to change their admissions processes or accept all students.

Private schools must be nationally accredited and have operated for at least two years, although the rules approved by the comptroller’s office clarify that this includes schools operating in other states. This means a school with a newly opened Texas campus would be eligible to join the ESA program, as long as it is accredited and administers a nationally norm-referenced exam to students. Schools must have a Texas location at the time of application, the rules state.

More details

The rules also specify that children attending private preschools will be eligible for the same funding as other private school students—about $10,300. The pre-K amount was previously capped at $2,000, which some early childhood advocates said would put families seeking pre-K options outside their local public schools at a disadvantage, according to documents from a September public hearing.

To qualify for ESA funding to cover private preschool costs, students must be between 3-5 years old and meet Texas’ requirements for free pre-K, which include students with limited English proficiency, students who qualify for free or reduced-price school meals, children whose parents serve in the military and children of public school teachers.