TEFA Special Education and IEP Funding: How to Access Up to $30,000

The $30,000 Tier: What It Is

TEFA's special education funding tier provides total funding of up to $30,000 per student per year — based on the amount the child's home public school district would have generated in special education funding under TEC Chapter 48, including the standard private school base award.

The $30,000 cap represents the highest individual funding level in the TEFA program. For families paying for private special education tuition, speech therapy, occupational therapy, ABA services, and other supports, this allocation can dramatically offset out-of-pocket costs that often run five figures annually.

The Private School Requirement

Here is the restriction that surprises many families: the $30,000 special education tier is only available to students enrolled in accredited private schools. A homeschooled student with an IEP receives the standard $2,000 homeschool cap, not $30,000.

The Comptroller's final administrative rules under 34 TAC § 16.403 made this explicit. There is no exception or hybrid arrangement that lets a homeschooling family access the higher tier. Program decisions can be appealed, but increased special education funding requires enrollment in an accredited private school and a current IEP on file with TEA.

What Documentation You Need

For Tier 1 priority placement, you must provide approved disability documentation. To qualify for the increased special education funding, your child must have a current IEP on file with TEA by the end of the application period.

1. An active Individualized Education Program (IEP) from a Texas public school district — this is the most common pathway
2. A Full and Individual Initial Evaluation (FIIE) — the comprehensive assessment public districts conduct to determine special education eligibility
3. An approved state proof-of-disability form signed by a licensed physician

The increased award requires a current IEP on file with TEA; an out-of-state IEP alone does not meet that requirement. For Tier 1 priority, an FIIE or program-approved proof-of-disability form may also establish disability status.

Requesting an Evaluation from Your Public District

If your child has never been evaluated by a public school district — perhaps because they've always been privately educated or homeschooled — the district is still required to evaluate them. Under federal IDEA law (prior to exiting public school), parents can request a Full and Individual Initial Evaluation from their resident district.

The district generally must complete an initial evaluation no later than the 45th school day after receiving written consent. A special end-of-year rule applies when consent is received 35 to 44 school days before the last instructional day. If you're planning to apply for TEFA's special education tier, initiate the evaluation request well before the application window opens.

For families whose child already has an IEP from a previous public school enrollment, verify that it's current and on file with TEA. The Comptroller identifies an IEP from the 2023–24, 2024–25, or 2025–26 school year as current for the inaugural cycle.

Tier 1 Priority in the Lottery

Students with disabilities and household AGI at or below 500% of the Federal Poverty Level receive Tier 1 priority — the highest rank in the TEFA lottery. For a family of four, that income ceiling is about $165,000 using the 2026 HHS guideline.

Tier 1 applicants are funded first, before any other income tier. In the inaugural year, this meant disability applicants had the strongest probability of receiving an account, even with 274,000 total applications competing for funding.

The IDEA Trade-Off

Leaving public school to attend a private school with TEFA funding waives your child's federal Individuals with Disabilities Education Act (IDEA) rights. Under IDEA, public schools must provide a free appropriate public education (FAPE) in the least restrictive environment, implement the IEP with specific services and goals, and provide due process protections if the district falls short.

Private schools are not bound by IDEA. An accredited private school can offer accommodations and therapies — and TEFA funds can pay for them — but there's no legal guarantee of FAPE. If the school's program doesn't meet your child's needs, your recourse is to withdraw and re-enroll in the public system, where the child would be placed in the lowest TEFA re-entry priority tier.

This is a substantive decision, not just a financial one.

Approved Special Education Expenses

The $30,000 allocation can cover:

• Private school tuition and required fees at an accredited institution
• Speech, occupational, and physical therapy from licensed clinicians when not covered by government benefits or the child's private insurance
• Applied behavior analysis (ABA) from certified providers when not covered by government benefits or the child's private insurance
• Specialized 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
• Assistive technology required by an education service provider or vendor, or prescribed by a physician, within the 10% cap (up to $3,000 at the $30,000 level)
• Testing and assessment fees

Services must be provided by Odyssey marketplace vendors and cannot be covered by a federal, state, or local government benefit or by private insurance the child is enrolled in when receiving the service.

For a detailed walkthrough of the special education pathway — including the evaluation timeline, documentation requirements, and how to coordinate IEP transfers with the TEFA application — the TEFA Parent Guide covers each step.

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