Texas Voucher Program Drains Public School Funding

733 Texas school districts could lose nearly $300 million in state funding this school year as students move to private schools and homeschooling.

Updated on Nov. 10, 2026 in Financial Aid

Bold vector editorial illustration of two stacks of coins beside a small school bell on an ochre field, one stack visibly shorter, under an open prairie horizon. — Texas school districts could lose nearly $300 million in state funding this year as students leave for private schools and homeschooling through the state's Education Freedom Accounts voucher program. AI Illustration. Upload story photo >

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Students leaving public schools for private schools or homeschooling through the Texas Education Freedom Accounts voucher program could cost 733 districts nearly $300 million in state funding this school year. State dollars follow enrollment, so each departing student takes funding with them.

Why it matters

Because state funding is tied to enrollment, districts lose money as students use vouchers, a dynamic that the Texas Center for Voucher Transparency and Every Texan analysis highlights. The analysis also shows that Black students make up a larger share of the program's early participants than of public school enrollment, raising questions about who is benefiting.

The Texas Education Freedom Accounts program provides $10,474 to most participating private school students, up to $30,000 for eligible students with disabilities, and $2,000 for homeschooling expenses. The analysis covers early participation and projected funding losses, and does not yet reflect the program's full enrollment.

The players

Texas Center for Voucher Transparency

A research organization that conducted the analysis of voucher program enrollment and its effect on public school funding.

Every Texan

A nonprofit policy research organization that co-produced the analysis of Texas voucher participation and public school funding impacts.

The details

The Texas Education Freedom Accounts voucher program lets families use state money for private school tuition or homeschooling expenses. In Houston ISD, 1,207 students were awarded vouchers in the 2024-25 school year, when Black students made up 21% of the district's population.

2024-25 school year: Houston ISD awards 1,207 vouchers, with Black students making up 21% of the district's population.
This school year: 733 Texas school districts face potential losses of nearly $300 million in state funding.

Financial Aid Landscape

The Texas Education Freedom Accounts program, which uses state dollars to fund private school tuition and homeschooling, is now being measured by its effect on the public school funding that follows student enrollment. The funding losses described here show how voucher expansion shifts money away from the districts that serve most of the state's students.

Families considering the Texas Education Freedom Accounts should compare the $10,474 standard amount against private school tuition and the $2,000 homeschooling allowance before applying. Parents of students with disabilities may be eligible for up to $30,000 under the program's higher tier.

The takeaway

Because voucher dollars follow students out of public schools, the funding picture for Texas districts depends as much on enrollment shifts as on the program's own budget. Readers tracking education spending should watch how districts adjust as the program grows.