What is an Education Savings Account, and who can benefit from it?

The Texas legislature approved a bill regarding Education Savings Accounts, which became law on September 1, enabling parents to receive funds to cover their child’s private school tuition and other educational expenses.  
 
Texas Education Savings Accounts (ESAs) provide participating families with state funds to help cover their child’s private school tuition and other educational expenses. ESA funds can be used for tuition, tutoring services, school meals, uniforms, textbooks, and educational therapies. 
 
An Education Savings Account (ESA) gives parents of students in non-public schools in Texas a publicly funded savings account. The Texas Comptroller of Public Accounts supervises the program. Up to $10,000 can be allocated per student, and up to $30,000 for a child with special needs. Homeschooled children can receive up to $2,000 each year.
 
Parents must enroll in January 2026 to receive funding for the 2026/27 school year. Other states have had these ESAs for years, which has greatly benefited students in Catholic schools. To qualify, a student must be a U.S. citizen or a lawful resident. The law prioritizes children from low-income families and those with special needs.
 
If a student is approved, their siblings who have applied will also be approved. Once a student receives an ESA, the account will remain active as long as the parent remains in good standing, complying with program rules and law, and provides notice that they wish to continue into the following year. Unused funds may roll over year to year with no limit while the student is participating in the program. 

Priority access is given first to students with a disability (whose family income is at or below 500% of the Federal Poverty Guidelines), second to children whose family income is at or below 200% of the Federal Poverty Guidelines (FPG), then to children with a family income between 200% and 500% of the FPG, lastly, children of families whose income exceeds 500% of the FPG, depending on the available funds. Within this last group, students transferring from public schools will be prioritized over those already enrolled in private schools. 
 
Now, in September, the Texas Comptroller will publish the program’s rules and contract a certified Educational Assistance Organization to help manage it. The ESA application page will open in January 2026. If the number of applicants exceeds the available ESA spots, a lottery system will be used to determine approvals based on prioritization rules. In spring 2026, families will receive notifications about their ESA approval, and in July 2026, the first quarterly deposits will be made into families’ ESA accounts.

For more information, please visit https://txcatholic.org/esa/ or contact your local Catholic school directly.