TEFA for Private School in Texas: Award Amounts, Tuition Gaps, and Disbursement

The $10,474 Base Award

Private school students under TEFA receive $10,474 per year — calculated at 85% of the statewide average total state and local funding per student in average daily attendance. The Texas Education Agency sets this figure annually for each school year.

Unlike the $2,000 homeschool allocation (paid in a single July 1 lump sum), private school funding comes in three quarterly tranches:

• 25% ($2,618.50) on July 1
• 25% ($2,618.50) on October 1
• 50% ($5,237) on February 1

This schedule is designed to align with enrollment verification checkpoints. The school confirms enrollment before each tranche is released.

The Tuition Gap

Most Texas private schools charge more than $10,474 per year. Average private school tuition in the state runs between $8,000 and $15,000 for elementary and $12,000 to $25,000 for secondary. For families at schools above the TEFA base award, there's a gap between what the state pays and what the school charges.

That gap is the family's responsibility. TEFA is a tuition offset, not full coverage. Parents need to understand this before relying on the award — private school enrollment contracts typically enforce full tuition liability regardless of whether state funds arrive on time or at all.

The timing adds another wrinkle. The first tranche arrives July 1, but many schools require enrollment deposits and first-quarter tuition before that date. Families should coordinate payment timelines with their school's business office to avoid late fees or enrollment holds while waiting for the state disbursement.

Accreditation Requirements

Not every private school qualifies. To participate in the TEFA marketplace, a private school must:

1. Hold accreditation from an organization recognized by the Texas Private School Accreditation Commission (TEPSAC) or TEA
2. Operate physically within Texas
3. Have maintained operations for at least two consecutive years

Schools that opened recently or operate without recognized accreditation aren't eligible for TEFA tuition payments. If you're evaluating a new school, verify its TEPSAC status before assuming your TEFA award will apply there.

What the $10,474 Covers Beyond Tuition

The private school award isn't limited to tuition. Within the Odyssey marketplace, approved spending categories include:

• Tuition and enrollment fees
• Required academic charges
• Textbooks and curriculum materials
• Academic tutoring from approved providers, subject to the rule against payments to a person related to the participant within the third degree by consanguinity or affinity
• Educational therapies from licensed clinicians when not covered by government benefits or the child's private insurance
• Standardized testing and exam fees
• Technology hardware and software required by an education service provider or vendor, or prescribed by a physician (capped at 10% — about $1,047)
• Approved transportation to the school

If your school's tuition is below $10,474, the remaining balance can be allocated to these other approved categories. Unused funds at year-end roll over to the next school year.

The $30,000 Special Education Tier

Private school students with an active, in-state Individualized Education Program (IEP) on file with TEA can receive up to $30,000 per year. This reflects the special education funding the child's home public school district would have generated under TEC Chapter 48.

The key requirement: the current IEP must be on file with the Texas Education Agency by the end of the application period. Parents of children who have never been evaluated by a public district may request a Full and Individual Initial Evaluation (FIIE); Texas law also sets an evaluation deadline for students in private or home-school settings.

One important caveat: leaving public school for private school waives the child's federal IDEA protections. Private schools are not required to implement IEPs. The $30,000 TEFA award helps pay for therapies and accommodations, but the legal guarantee of a free appropriate public education no longer applies.

Enrollment Verification

Each quarterly tranche requires the school to verify that the student is still enrolled. If a student withdraws or transfers mid-year, disbursements stop. Remaining funds in the account are forfeited and returned to the state fund.

The TEFA Parent Guide includes a disbursement budget planner designed for private school families — mapping the quarterly payment schedule against tuition due dates and covering how to manage the gap.

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