Education Savings Account Program Set to Be Voted On in Texas House

Parents, teachers, and education leaders from Texas’ public and private schools are preparing for a potentially historic day in the House. Legislators are expected to vote on a bill to create a $1 billion education savings account program, which is the result of years of advocacy and political jockeying.

Republican state leaders are confident that this is the year Texas will pass a robust school-choice program that would allow public dollars to be spent on private schools. However, Democrats, who oppose the measure, want Texas voters to decide the fate of ESAs and are threatening to block key GOP priority measures if they don’t get their way, according to some House members.

What is an Education Savings Account (ESA)?

ESAs establish dedicated accounts fueled by public funds that families can use to pay for education expenses. Under Texas’ proposal, an ESA could fund private school tuition, support homeschooling, or be used for other education-related costs.

Arizona established a similar system in 2011 with Empowerment Scholarship Accounts, which was expanded in 2022 to become a universal program. Critics have cited the state’s ballooning ESA costs as a major factor in a budget shortfall, while supporters say the measure has lifted kids away from failing schools.

Who Would Be Prioritized for an ESA Under Texas’ Plan?

Gov. Greg Abbott, who made passing ESAs a top legislative priority, wants a universal program, meaning any student could qualify. However, universal eligibility doesn’t mean everyone who wants an ESA will receive it. Lt. Gov. Dan Patrick has estimated that about 90,000 students could access the fund.

House members are likely to debate who should get priority access if demand exceeds supply. Different iterations of ESA proposals have put forth various hierarchies based on family income, whether a student has a disability, if a child previously attended public school, or if a student was enrolled in a poor-performing public campus.

What About Immigrant Students?

The latest version of the Senate bill would prohibit undocumented children from receiving an ESA. Only a child who is a citizen, has legal status, or who is a “national of the United States” would be eligible.

Any child living in the country has a right to public education based on a 1982 U.S. Supreme Court ruling on a case out of Texas known as Plyler vs. Doe. The bill’s provision blocking undocumented students comes amid a national crackdown on immigration enforcement.

How Much Money Would a Texas Family Receive in an ESA?

Under the proposal, families in private schools would receive $10,000 per year per child. Children with disabilities would receive $11,500. Homeschooled students could receive $2,000, and homeschooled students with disabilities would be eligible for $2,500.

When House members debuted their own idea for ESAs, they took a different approach. They proposed an ESA valued at 85% of the average amount public schools receive per student in state and local funding, which would equate to roughly $10,000 in 2026.

How Much Would a School Choice Plan Cost Texas?

Republican state budget writers want to spend $1 billion of the state’s nearly $24 billion surplus to fund the program. House members in the Public Education Committee tweaked the Senate’s plan to set a $1 billion cap for the first two years of an ESA program.

A legislative advisory board had previously projected that an ESA program’s annual cost could balloon to nearly $4 billion by 2030. Abbott has said those estimates are “based on nothing but fiction.”

Conclusion

The passage of the ESA program in the House would give the bill a clear path to the governor’s desk. However, changes could still be made to the bill in a conference committee of lawmakers from the Senate and House who would work out differences between the versions of the bill each chamber passed.

The DMN Education Lab deepens the coverage and conversation about urgent education issues critical to the future of North Texas. The DMN Education Lab is a community-funded journalism initiative, with support from various organizations and individuals.

Frequently Asked Questions

Q: What is an Education Savings Account (ESA)?

A: An ESA is a dedicated account fueled by public funds that families can use to pay for education expenses, such as private school tuition, homeschooling, or other education-related costs.

Q: Who would be eligible for an ESA under Texas’ plan?

A: Gov. Greg Abbott wants a universal program, meaning any student could qualify. However, the latest version of the Senate bill would prohibit undocumented children from receiving an ESA.

Q: How much money would a Texas family receive in an ESA?

A: Under the proposal, families in private schools would receive $10,000 per year per child, while children with disabilities would receive $11,500. Homeschooled students could receive $2,000, and homeschooled students with disabilities would be eligible for $2,500.

Q: How much would a school choice plan cost Texas?

A: Republican state budget writers want to spend $1 billion of the state’s nearly $24 billion surplus to fund the program. A legislative advisory board had previously projected that an ESA program’s annual cost could balloon to nearly $4 billion by 2030.