Texas Enacts Landmark School Voucher Program

On May 3, 2025, Texas Governor Greg Abbott signed Senate Bill 2 into law, authorizing one of the largest private school voucher programs in the United States and marking a watershed moment in the state’s decades-long education debate. The law, enacted outside the Governor’s Mansion in Austin before hundreds of supporters, allows families to use public taxpayer dollars—roughly $10,300 to $10,900 per child annually—for accredited private school tuition or related expenses, with up to $30,000 available for children with disabilities and $2,000 per year for homeschoolers. The program, set to launch in late 2026, will be capped at $1 billion for its first two years, with projections suggesting costs could rise to nearly $5 billion by 2030. Abbott and top Republicans argue the law empowers parents to choose the best education for their children, while critics warn it threatens public school funding and disproportionately benefits wealthier families.

How the Texas Voucher Program Works

Senate Bill 2 creates education savings accounts (ESAs), state-managed bank accounts that families can use to pay for private school tuition, textbooks, transportation, therapy, and other approved expenses. According to a legislative budget analysis, most families will receive an amount equal to 85% of the state and local funding allocated per public school student, about $10,300 to $10,900 per year per child. Children with disabilities are eligible for the same base funding plus up to $30,000 in additional support, based on the state’s average spending for special education services in public schools. Homeschoolers can access up to $2,000 per year.

The program is open to almost any school-age child in Texas, including those already attending private schools. However, families cannot enroll their children in both the voucher program and a public school simultaneously. Students whose parents cannot prove U.S. citizenship are excluded, and lawmakers are considering a bill to bar children of statewide elected officials from participating.

Priority System and Eligibility

If demand for the program exceeds available funding, priority will be given to students with disabilities from families earning up to 500% of the federal poverty level (about $160,000 for a family of four). Next in line are families at or below 200% of the poverty level (about $64,300 for a family of four), followed by those between 200% and 500%, and finally, families above 500% of the poverty level, who are limited to 20% of the program’s budget.

The program also prioritizes students exiting public schools over those already enrolled in private schools. However, the law does not require private schools to change their admissions processes or follow state or federal disability accommodations, meaning they can still deny entry to students who do not meet their standards.

Implementation and Oversight

The Texas Comptroller, the state’s chief financial officer, will oversee the program and has until May 15, 2026, to establish the rules and application process. Up to five organizations will be selected to help administer the program. Participating private schools must be accredited and have operated for at least two years.

Enrolled students must take a nationally recognized exam chosen by their private school, but private schools are not required to administer the same standardized tests as public schools. The state must produce an annual report on participants’ test results, satisfaction, college and career readiness, demographic data, and the program’s impact on public and private school enrollment.

A private auditor will ensure compliance with the law, and the state can suspend accounts of those not following guidelines or refer fraud cases to local authorities.

Political Backdrop, Years of Discord, and a Shift in Power

The passage of Senate Bill 2 comes after years of legislative gridlock and intense debate. Previous attempts to create a voucher program failed due to opposition from Democrats and rural Republicans, who argued that diverting funds to private schools would harm public education, especially in rural areas with few private options. In 2023, 21 House Republicans joined Democrats to block the proposal.

Governor Abbott made school vouchers a top priority, backing pro-voucher candidates in the 2024 Republican primaries. His efforts shifted the balance of power in the Legislature, enabling the bill’s passage this year.

“When I ran for reelection in 2022, I promised school choice for the families of Texas. Today, we deliver on that promise,” Abbott said at the bill’s signing. “Gone are the days when families are limited to only the school assigned by the government. The day empowers parents to choose the best school for their child.”

Supporters and Opponents, A Deeply Divided State

Supporters of the voucher program, including Abbott, Lt. Gov. Dan Patrick, and House Speaker Dustin Burrows, argue that it gives parents more options and helps children escape underperforming public schools. They insist that public and private education can coexist and that the program prioritizes low-income and special-needs students.

“School choice already exists for the wealthy,” Abbott said. “This ensures school choice for people of all means, including those of low-income means.”

Opponents, including Democrats, teachers’ unions, and rural Republicans, warn that the program will drain resources from public schools, which serve the vast majority of Texas students—about 5.5 million children in 2023-24. They point out that 158 of Texas’s 254 counties have no private schools, limiting options for rural families.

“Remember this day next time a school closes in your neighborhood,” said state Rep. James Talarico, D-Austin, at a news conference before the bill’s signing. “Remember this day next time a beloved teacher quits because they can’t support their family on their salary. Remember this day next time your local property taxes rise because the state government is not doing its fair share of school funding. And if recession comes and we are forced to make even deeper cuts to public education, remember this day.”

Concerns Over Equity and Accountability

Critics argue that the voucher program lacks sufficient accountability and could lead to discrimination. Private schools are not required to follow state or federal laws on accommodations for students with disabilities or protections for LGBTQ+ students and families. Additionally, the program does not guarantee admission to private schools, and families in rural or low-income areas may struggle to access private education.

Emily Witt, spokesperson for the Texas Freedom Network, called the bill “a direct assault on the Texas public education system” and part of a “coordinated strategy to dismantle public education statewide and nationally.”

Opponents also highlight that Texas has not increased per-student funding for public schools since 2019, and many districts face budget shortfalls and campus closures. Multiple North Texas districts, including Fort Worth ISD and Carrollton-Farmers Branch ISD, plan to close campuses or cut staff due to financial pressures.

Data and Projections

The Texas voucher program is projected to be one of the largest in the nation, with up to $1 billion allocated for its first two years and potential costs rising to $4.8 billion by 2030. About 5.5 million children attend Texas public schools, while an estimated 327,000 students attended private schools in 2021.

According to Every Texan, a nonprofit policy organization, even a modest 5% take-up rate for the voucher program could result in a $2.25 billion loss for Texas public schools—more than double the $1 billion allocated for the program’s first two years. Public education advocates warn that this loss would further strain already underfunded schools and could lead to teacher layoffs, larger class sizes, and reduced services for students.

“This is part of a coordinated strategy to dismantle public education statewide and nationally,” said Emily Witt of the Texas Freedom Network. “It’s certainly not ‘choice.’ It’s going to really devastate a lot of public schools and rural communities here in Texas.”

National Context and Political Momentum

Texas joins 16 other states that allow all students access to public funding for private schooling, but its program is the largest by far, with all 5.3 million school-age children eligible13. Nationally, more than 1 million students use state funding or tax credits for private education, according to EdChoice13.

The Texas law is part of a broader conservative movement to expand school choice, fueled by support from national figures such as former President Donald Trump and former Education Secretary Betsy DeVos. In January 2025, Trump issued executive orders directing the Department of Education to prioritize federal resources for school choice initiatives.

The Texas voucher program has also drawn attention for its potential to set a national precedent. “Today represents the peak of a movement that has gained momentum throughout our state and our nation,” Abbott declared at the bill’s signing.

Voices from the Community

The voucher program has sparked strong reactions across Texas. In El Paso, residents expressed concerns about the impact on public schools. “Well, I don’t see it as fair, I think they’re taking it away from the people who need it the most,” said Guillermo Ramos. “I think that we’re struggling because I know that they’re trying to shut down some schools and let go of some teachers, and hey, we need all the help to get into the public system.”

Andrew Preciadl, another El Paso resident, added, “The public school system’s already in a crisis, defunding them is just going to create a worse situation for everyone. The voucher system is going to be really detrimental to defunding public schools,” which he believes will have “a horrible impact on low-income families like the one I came from myself.”

Rosa Grazia advocated for investing in public schools, saying, “Yeah, spend it on the public school so the majority of the people going to public school can take advantage of it.”

Ross Moore, president of the El Paso chapter of the Texas AFT, was adamant that the voucher program would harm public schools. “It was and it will be a very bad thing for public schools and public school students,” he said. “They’re not going to be able to afford. What it is going to do is it’s going to draw money out of the public schools away from the schools, and I see it destabilizing their budgets even further.”

Implementation and Future Challenges

The Texas voucher program will launch at the start of the 2026-27 school year. The comptroller will establish the rules and procedures by May 15, 2026. The state will select up to five organizations to help administer the program, and private schools must decide whether to participate.

As the program rolls out, lawmakers will face ongoing debates about its impact on public schools, equity, and accountability. Critics will continue to monitor whether the program lives up to its promise of prioritizing low-income and special-needs students, or if it mainly benefits families who were already planning to send their children to private schools.

The annual reports required by the law will provide data on student outcomes, program satisfaction, and demographic trends, offering a basis for future policy decisions. The state will also need to address concerns about fraud, discrimination, and the adequacy of funding for both public and private education.

A New Era for Texas Education

Governor Greg Abbott’s signing of Senate Bill 2 marks the beginning of a new era for education in Texas. The largest school voucher program in the nation is set to launch in 2026. The law empowers parents to use public funds for private schooling, with special provisions for children with disabilities and homeschoolers. Supporters hail it as a victory for parental choice and educational freedom, while opponents warn it threatens the future of public education, especially in rural and low-income communities.

The coming years will test whether the program delivers on its promises or exacerbates existing inequalities in Texas’s education system. As the state prepares to implement the voucher program, the debate over school choice and the future of public education in Texas is far from over.