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Thousands of students who apply for Texas’ education savings accounts will likely not be accepted into the first year of the program, application data from the state comptroller’s office shows.
What's happening: Over 101,000 students had applied for Texas Education Freedom Accounts as of Feb. 15. Applications close at 11:59 p.m. March 17.
Program funding is capped at $1 billion for the 2026-27 school year, meaning between 90,000 and 100,000 students will likely be accepted. With demand expected to outpace available funding, applications will be prioritized through a need- and income-based lottery system.
Zooming in: Over 70% of program applicants were from low- or middle-income households, according to data from the comptroller’s office. Under Senate Bill 2, the 2025 law that created the program:
- “Low-income” is defined as families with annual household incomes at or below 200% of the federal poverty line, or about $66,000 for a family of four.
- “Middle-income” is defined as families with incomes at or below 500% of the federal poverty line, or about $165,000 for a family of four.
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