Big changes are on their way for Texas’ education sector following the state’s intent to opt into the Federal Tax Credit Scholarship (FTCS) program. The announcement was made after the state recently opened applications for private schools to opt into the state’s voucher program.
The FTCS program was established as part of the administration’s One Big Beautiful Bill, establishing a dollar-for-dollar tax credit to help underserved families afford quality elementary and secondary education. While the program won’t be officially underway until Jan. 1, 2027, Texas has already committed to participating as a vehicle to break down educational barriers and promote school choice.
Qualifying scholarship granting organizations (SGO) will be eligible to receive up to $1,700 in tax credits that can be used to grant scholarships to students at private and public schools. Credits exceeding $1,700 can be carried forward for up to five years. Only students from families that earn at or below 300% of the local median income can receive these credits. Recipients may use the funds for certain expenses, including:
- Tuition, fees, books, supplies, equipment, academic tutoring and special needs services for select beneficiaries who will or plan to attend a public, private or religious school.
- Room and board, uniforms, transportation and supplementary items and services if required by those schools.
- Computer technology, equipment or internet access and related services if required during years of attendance at those schools.
States will have the authority to recognize eligible SGOs seeking enrollment with the FTCS program. Grants will only be given to students that live within the state that recognized the SGO as a valid recipient.
Inclusion in the FTCS program closely aligns with Texas’ own efforts to promote school choice and expand educational opportunities. Senate Bill 2 was signed into law in May, establishing the Texas Education Freedom Account (TEFA) program with $1 billion in funding for the 2026-2026 school year. Applications for private schools to participate in the program are open until Jan. 31, 2026.
To qualify, private schools must:
- Have a Texas-based campus.
- Be accredited.
- Have continuously operated for at least two school years.
- Administer a nationally recognized assessment to students in grades 3-12 each year.
Eligible students may potentially receive vouchers through the TEFA program to pay for tuition, equipment, uniforms, textbooks and other necessities at private schools that opted into the program. Families will be able to apply for the program beginning Feb. 4, 2026. Once officially underway, it will be recognized as the largest day-one launch in the country.
Photo by Mian Rizwan from Pexels
This story is a part of the weekly Texas Government Insider digital news publication. See more of the latest Texas government news here. For more national government news, check Government Market News daily for new stories, insights and profiles from public sector professionals.