Texas state officials have announced historic enrollment numbers for the Texas Education Freedom Account (TEFA) program, following its inaugural round of awards. Announced through the Comptroller, TEFA has awarded vouchers to more than 102,000 students statewide, while nearly 145,000 others remain on the waitlist.
The TEFA program was launched in 2025 when Governor Greg Abbott signed Senate Bill 2 that was passed by the Texas Legislature. The measure set aside $1 billion to fund what state officials describe as the largest day one school choice program in the nation. It is administered by the Texas Comptroller of Public Accounts.
The comptroller’s announcement comes as Texas public school districts report a 1.4% decline in enrollment, raising new questions about how the TEFA program could affect student counts and district funding.
Because state funding is tied in part to average daily attendance, enrollment declines can reduce district revenue. State data indicate districts receive roughly $6,100 per student in basic allotment funding, though actual funding varies by district and student population.
When the enrollment declines were reported, TEFA awards had not yet been issued, making it impossible to draw a direct connection between the reported enrollment losses and participation in the program. Houston ISD and Dallas ISD reported the state’s largest enrollment declines, with student counts down by about 24,500 and 13,000, respectively. Those districts also account for the largest numbers of TEFA recipients, with 3,953 awards in Houston and 2,961 in Dallas. Whether those awards contribute to future enrollment changes remains to be seen.
Still, 57% of this year’s students in the school choice program were already enrolled in private school or homeschool, suggesting the impact on district budgets may be less than if all recipients had previously attended public schools.
Additionally, the largest number of awardees by far are pre-K students. Nearly 11,000 awards were issued to students entering pre-K, a group that generally would not have been included in K-12 public school enrollment counts. Most elementary grade levels hover around 8,300 to 8,600, and numbers slope downward from middle school onward.
Among award recipients, 38% identified as white, 27% as Hispanic and 16% as Black.
While enrollment drops are a concern, administrators have many factors other than TEFA to consider, such as rising housing costs, migration patterns, competition from charter schools and lower birth rates.
Supporters argue the program expands educational options for families, while opponents contend public schools face obligations and regulatory requirements that private schools do not. The long-term effects on enrollment and district finances will become clearer as students begin using TEFA funds during the coming school year.
Photo by David McElwee from Pexels
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