Governor Greg Abbott has signed Senate Bill 2 into law, making private school vouchers a reality in Texas. The move ends a long-standing political battle and marks a major shift in the state’s education system.
The new law allows families to use public funds to pay for private school tuition and other education-related expenses such as textbooks, transportation, and therapy. Supporters say it gives parents more control over their children’s education. Critics warn it could weaken public schools.
“This is a promise kept,” Abbott said during the bill signing event held outside the Governor’s Mansion. “Families are no longer restricted to government-assigned schools. Now they have the power to choose what’s best for their children.”
Program Launches in 2026
The law will go into effect on September 1, 2025. The program is set to begin with the 2026–27 school year.
Under the law, families can receive about $10,000 per year to pay for private schooling. The exact amount will be around 85% of what public schools currently receive per student. Students with disabilities may qualify for up to $30,000, depending on their needs. Families who homeschool can get up to $2,000 per child annually.
The funds will be distributed through education savings accounts managed by the state. Parents will be able to use these accounts to pay for approved expenses.
$1 Billion Cap for First Two Years
The state will spend up to $1 billion on the program during its first two-year budget cycle, from September 2025 to August 2027. After that, lawmakers will decide whether to increase the funding. State budget analysts estimate the cost could rise to $4.8 billion by 2030.
Open to Most Texas Families
The program is open to most school-age children in Texas, including those already attending private schools. Up to 20% of the initial funding may go to families earning more than 500% of the federal poverty level — roughly $160,000 or more for a family of four.
However, students must not be enrolled in a public school at the same time. Children who are not U.S. citizens are also not eligible. Lawmakers may also pass rules that bar children of statewide elected officials from joining the program.
If demand exceeds available funding, the law outlines a priority system:
- Students with disabilities from families earning under 500% of the poverty line
- Families earning less than 200% of the poverty line (around $64,300 for a family of four)
- Families between 200% and 500% of the poverty line
- Families above 500% of the poverty line (up to 20% of the program budget)
Students moving from public to private schools will get priority over those already in private schools.
Private Schools Maintain Admission Standards
Private schools can choose whether to participate. To qualify, schools must be accredited and have been in operation for at least two years. However, they are not required to change their admissions processes or follow state and federal rules on services for students with disabilities. This means they can reject applicants who don’t meet their criteria.
No STAAR Testing Required
Students in the program will not be required to take the STAAR test, which is used in public schools. Instead, they will take a nationally recognized test chosen by their private school.
Each year, the state will release a report showing student test results, program satisfaction, and college or career readiness. The report will also include demographic data such as age, sex, race, and zip code. Lawmakers will receive an annual update on the program’s impact on public and private school enrollment.
Oversight and Fraud Prevention Measures
The state comptroller will oversee the program. By May 15, 2026, the comptroller must set the program rules, create the application process, and choose up to five organizations to help run the program.
To prevent fraud, a private auditor will monitor how the funds are used. The law gives the state authority to suspend accounts if users violate the rules. Any fraud or misuse of taxpayer dollars will be referred to local authorities.
A Divisive Victory
The voucher program has sparked intense debate for years. Opponents, including many Democrats and rural Republicans, argue it will pull funding from already underfunded public schools. These schools are often the main employer and support system in small towns.
“Remember this day the next time a school closes or a teacher quits,” said Rep. James Talarico, D-Austin. “This law will hurt public education in ways we may not fully see until it’s too late.”
Supporters, including top Republican leaders, say the law is necessary. They point to growing frustration among parents during the COVID-19 pandemic and concerns about public school policies.
While voucher programs in other states have produced mixed results and often benefit wealthier families, Texas leaders remain confident that their version will serve all communities.
The full impact of the law will likely become clearer in the years ahead as the program rolls out and families begin to make choices about their children’s education.
