Texas ESA Rollout: 96,000 Awards & What Parents Should Know Now

Texas ESA Awards Reach 96,000 Families—But Most Were Already in Private School

Texas has sent award notices to roughly 96,000 students for its new education savings account program, marking what state leaders call the largest day-one school choice initiative in the nation. By early May 2026, the Texas Comptroller's office completed the second major wave of awards under the Texas Education Freedom Accounts program, known as TEFA or the Texas ESA.

But the data behind those awards tells a story that many parents considering the program need to understand. Among the second-tier awards—more than 51,000 students from families earning at or below 200% of the federal poverty level—68% previously attended a private school or were homeschooled. Only 32% were coming from public schools.

If your family applied and you're wondering what happens next, or if you're thinking about future application rounds, here's what the May rollout reveals about who's actually getting Texas ESA awards, how the lottery works, and whether it's worth staying on the waitlist.

Who Received Awards in the May 2026 Rollout

The 96,000 award notices sent by May 6 were split into two groups, processed in priority order according to Texas law.

Tier 1: Students with disabilities and siblings

The first group, more than 42,600 children, included students with disabilities who have an individualized education program on file with the Texas Education Agency, plus their siblings. These families earn up to 500% of the federal poverty level—$165,000 per year or less for a family of four. Award notices for this tier began going out April 22.

Of these first awardees, 42% are white and more than half come from families considered low-income. Meanwhile, 53% previously attended a public school.

Tier 2: Lower-income families

The second round, announced the week of May 4, covered more than 51,000 children from families at or below 200% of the poverty level—an annual income of $66,000 or less for a family of four. This is where the private school and homeschool concentration becomes stark: 68% of these students were not enrolled in public schools before receiving an award.

Demographically, 36% are white, 28% are Hispanic, and 17% are Black.

Because demand in Tier 2 exceeded available funding, awards were distributed through a randomized lottery. Each applicant was assigned a sequential position using a random number generator, with siblings grouped under the highest-priority applicant in their household. The lottery was conducted by Odyssey, the certified educational assistance organization managing the program, and observed by the State Auditor's Office and advisers from Ernst & Young.

The July 15 Deadline and What Happens to Unclaimed Awards

Receiving an award notice is not the same as being accepted into the program.

Students are not officially accepted until their enrollment in a private school is confirmed, which families must complete by July 15. Families can also choose homeschooling or opt out entirely.

If families don't confirm enrollment or find their preferred schooling option, those funds will go to students on the waitlist. This creates a second chance for waitlisted families—though the state has not yet indicated how many spots might open up through July.

For families who received awards, the funding schedule is:

July 1, 2026: At least 25% of approved funding available
October 1, 2026: At least 50% available
April 1, 2027: Remaining funding available

Private school students receive $10,474 for the 2026-27 school year. Students with an IEP on file may receive up to $30,000, based on the funding their local school district would receive to provide services under the IEP. Homeschool families receive $2,000 annually.

How the Texas ESA Lottery Tiers Work

The Texas ESA program received more than 274,000 applications between February 4 and March 31, 2026. Approximately 25,500 applicants were found ineligible, most often because they didn't meet the narrower pre-K eligibility requirements, the state couldn't confirm income, or citizenship status couldn't be verified.

That left roughly 248,500 eligible applicants competing for awards funded by the program's $1 billion allocation—enough to serve an estimated 90,000 to 100,000 students, depending on how many receive the higher disability funding.

Texas law establishes a priority order when demand exceeds supply:

Siblings of current participants (after the first round)
Children with a disability, household income at or below 500% of the federal poverty level ($165,000 for a family of four)
Children from households at or below 200% FPL ($66,000 for a family of four)
Children from households between 200% and 500% FPL
All other eligible students (capped at 20% of total funded students if funding is limited)

Within each tier, if applications exceed available funding, a lottery determines placement. Applying early does not improve your odds—everyone who applies during the window is considered equally within their tier.

Where Are the Awards Concentrated

Geographically, Houston ISD has the highest number of applicants in the entire state. According to data from the Texas Comptroller, Houston leads all districts with nearly 3,800 total awards, followed by Dallas with more than 2,800. Fort Bend, Northside ISD in San Antonio, and Cypress-Fairbanks are also among the top recipients.

More than 2,400 private schools have been accepted into the program as of May. Private schools can apply on a rolling basis as long as they've existed for at least two years and hold accreditation recognized by the Texas Private School Accreditation Commission or the Texas Education Agency.

What the Data Means for Families Still Waiting

Roughly 153,000 students remain on waitlists across multiple tiers after the May awards. That's more than the total number funded so far.

The high percentage of private school and homeschool students receiving awards in Tier 2 suggests that many families already paying for private education applied, met income requirements, and won the lottery. For public school families, this means competition was stiffer than the raw application numbers might suggest—you weren't just competing against all 248,500 eligible applicants but against a pool where a significant share already had access to private school funding through other means.

Some perspective on whether to stay hopeful if you're waitlisted:

Short-term prospects: If you're in Tier 2 or 3 and on the waitlist, your chances depend on how many current awardees opt out or fail to confirm enrollment by July 15. The state has not released projections, but typically, ESA programs in other states see 5-15% of initial awardees decline.

Future application rounds: Texas has not announced when the next application window will open, but families can join an interest list for the 2027-28 school year. Because funding remains capped at $1 billion and the program structure stays the same, demand will likely continue to exceed supply unless the legislature increases funding in future sessions.

Income tiers matter: If your household income places you in Tier 4 or 5, the odds are considerably lower. The 20% cap on Tier 5 (higher-income families) means that even if you're eligible, state law limits how many spots you can access. Focus on Tier 1-3 if you're considering reapplying.

Should You Apply in Future Rounds

If you're a public school family considering whether to apply in a future cycle, weigh these factors:

You should consider applying if:

Your household income qualifies you for Tier 2 or 3
You have a child with an IEP on file with TEA (Tier 1 priority, up to $30,000 in funding)
You've already identified a participating private school that meets your child's needs and has open enrollment
You can cover the gap between the $10,474 award and actual tuition costs—average private school tuition in Texas is around $11,000, but many schools charge significantly more
You're prepared for the possibility that private schools are not required to accept ESA students and have no mandate to enroll students with disabilities

You may want to wait or reconsider if:

Your income places you in Tier 4 or 5—the lottery odds are much steeper
You need the ESA to fully cover private school tuition (it rarely will)
You haven't researched which schools in your area are participating and have space
Your child requires specific accommodations or services that private schools may not provide

For homeschool families, the $2,000 annual award can help offset curriculum and materials costs, but some homeschoolers have expressed concern about even minimal state oversight. Texas homeschool law has no testing requirements, and participation in TEFA is entirely optional.

What's Next for the Texas ESA Program

The Texas ESA program is now live, with the first quarter of funding hitting accounts on July 1. Families who received awards will need to confirm enrollment and select their schools through the Odyssey portal before the July 15 deadline.

For the roughly 153,000 families still waiting, the next few months will determine whether additional spots open up. After that, attention will shift to how the legislature handles funding in future sessions—and whether demand from public school families grows or remains concentrated among those already using private options.

If you're considering applying in a future round, start researching participating schools now, confirm your household income tier, and if applicable, make sure any IEP documentation is on file with TEA well before the application window opens. The lottery is random within tiers, but being prepared means you can act quickly once your child is selected.

Texas has launched the largest school vouchers program in the country by enrollment. Whether it expands access for public school families or primarily subsidizes those already in private education will depend on how the next few years unfold—and how the state chooses to allocate future funding.