Texas School Choice and Special Education Funding

The landscape of education in Texas is constantly evolving, and for parents of students with special needs, understanding the options and associated funding can feel like navigating a complex maze. From traditional public schools to the emerging realm of school choice programs, knowing how to secure the best educational environment and necessary financial support for your child is paramount.

This comprehensive guide will demystify Texas School Choice and Special Education Funding, offering clarity on the available pathways and how they intersect, particularly concerning students with disabilities. Are you wondering if a different school setting could better serve your child's unique needs? Do you know how special education services are funded, and what new opportunities might be on the horizon? Let's explore.

Understanding Texas School Choice

"School choice" is a broad term encompassing various educational options beyond a child's assigned neighborhood public school. In Texas, this includes several avenues designed to offer families more flexibility in their children's education.

What Does School Choice Mean in Texas?

Historically, Texas has offered several forms of school choice:

• Charter Schools: These are publicly funded schools that operate independently from traditional school districts but are still subject to state accountability standards. They often have unique educational philosophies or specialized programs. Charter schools receive state funding, including special education allotments, though they do not levy local property taxes like traditional Independent School Districts (ISDs).
• Magnet Schools: These are specialized public schools within a district that focus on a particular curriculum or area of study, such as STEM, arts, or international baccalaureate programs. Students typically apply for admission.
• Inter-district and Intra-district Open Enrollment: Some public school districts allow students to transfer to schools outside their attendance zone (intra-district) or even to schools in other districts (inter-district), depending on available space and district policies.
• Homeschooling: Parents choose to educate their children at home, following state guidelines.

The New Era of Education Savings Accounts (ESAs)

A significant development in Texas school choice is the establishment of the Education Savings Account (ESA) program through Senate Bill 2 (SB 2), signed into law in May 2025. This program, often referred to as a private school voucher program, is set to launch in the fall of 2026.

Under this new law, eligible families can use public taxpayer dollars deposited into state-managed bank accounts to pay for private school tuition and a wide range of approved educational expenses.

Special Education in Texas: The Funding Landscape

Texas public schools are legally obligated to identify, evaluate, and provide a Free Appropriate Public Education (FAPE) to all students with disabilities residing within their boundaries, as mandated by the federal Individuals with Disabilities Education Act (IDEA). This includes developing Individualized Education Programs (IEPs) that outline specific services and accommodations.

How Public Special Education is Funded

Special education services in Texas public schools are funded through a combination of state and federal dollars. The state provides a "basic allotment" per student, which was approximately $6,160 as of 2019, and then adds additional funding (allotments) based on the specific needs, type, and intensity of services a student with a disability requires.

Despite these allocations, Texas school districts face a significant financial challenge. There's an estimated $1.7 billion to $2.3 billion annual funding gap between what the state provides for special education and the actual costs incurred by school districts to deliver these mandated services. This shortfall often forces districts to pull funds from other programs to cover special education expenses. Furthermore, recent federal audits have led to substantial cuts in federal Medicaid funding for school health and related services (SHARS), further straining budgets.

The Texas Legislature has been discussing potential changes to the funding model, moving towards a system that bases funding on individual student needs rather than the setting where services are provided, with some proposals including additional state funding for special education.

The Intersection: School Choice and Special Education Funding

The new ESA program in Texas introduces a new dynamic for families of students with disabilities.

Education Savings Accounts (ESAs) for Students with Disabilities

Students with state-recognized disabilities are a priority group for the ESA program. They are eligible for significantly higher funding amounts compared to general education students. While most participating families will receive around $10,000 annually, students with disabilities could receive up to $30,000 per year. This amount is determined based on what the state would have spent on their special education services if they remained in a public school.

These funds can be used for a variety of approved educational expenses, including:

• Private school tuition and fees
• Textbooks and other instructional materials
• Exams and assessments
• Transportation
• Educational therapies and services (e.g., speech, occupational, physical therapy)
• Certain technological devices

If demand for the ESA program exceeds available funding, students with disabilities from families with an annual income at or below 500% of the federal poverty level (approximately $160,000 for a family of four) will receive priority.

Key Considerations and Challenges

While ESAs offer an alternative, parents of students with disabilities must be aware of critical differences and potential challenges:

• Loss of IDEA Protections: This is perhaps the most significant consideration. When a student leaves the public school system to use an ESA for private school, they forfeit their entitlement to an Individualized Education Program (IEP) and the protections guaranteed under the Individuals with Disabilities Education Act (IDEA). Private schools are generally not required to comply with IDEA. This means:
  • No automatic right to an IEP or ARD (Admission, Review, and Dismissal) process.
  • No guaranteed access to specific therapies or services.
  • No recourse through due process hearings if the private school fails to meet the child's needs.
• Private School Admissions and Capacity: Private schools are not obligated to accept students with disabilities or to provide accommodations. Many private schools may not have the resources, specialized staff, or facilities to adequately serve students with significant support needs. Finding a private school that truly specializes in and can meet complex special education needs can be challenging, and such schools often have very high tuition.
• Funding Gap for Specialized Services: While the ESA offers up to $30,000 for students with disabilities, the tuition for highly specialized private schools can far exceed this amount. Families would be responsible for covering any difference.
• Impact on Public Schools: Critics argue that diverting public funds to private schools through ESAs could further strain the already underfunded public special education system, potentially reducing resources for the majority of students with disabilities who remain in public schools.

Navigating Funding for Special Education Options

For parents in Texas, making informed decisions about their child's education and funding requires careful consideration.

Actionable Steps for Parents

1. Understand Your Child's Needs Thoroughly: Before considering any alternative, ensure your child's Full and Individual Evaluation (FIE) is up-to-date and accurately reflects their needs. This evaluation directly impacts the potential ESA amount your child might qualify for.
2. Research All Options:
   • Public School System: Explore all programs and services available within your local public school district. Many public schools offer robust special education departments. Understand the ARD process and your rights under IDEA.
   • Charter Schools: Investigate local charter schools. While publicly funded, they may offer different learning environments or specialized programs. Inquire specifically about their special education services, staff qualifications, and how they accommodate diverse needs.
   • Private Schools (with ESA consideration): If considering private school with an ESA, thoroughly research potential schools.
     • Ask direct questions: Do they accept students with your child's specific disability? What services do they provide? Do they have trained special education staff? What is their policy on accommodations?
     • Understand their limitations: Be clear that private schools are not bound by IDEA. What safeguards or alternative support systems do they offer?
     • Review costs: Compare the ESA amount to the full tuition and any additional service fees.
3. Consult with Experts: Speak with special education advocates, educational consultants, and legal professionals who understand Texas special education law and the new ESA program. Organizations like Disability Rights Texas can provide valuable insights.
4. Stay Informed: The ESA program is new and its implementation details will continue to evolve. Keep abreast of updates from the Texas Comptroller's Office and the Texas Education Agency (TEA).

Conclusion

The landscape of Texas School Choice and Special Education Funding is undergoing significant changes, offering both new opportunities and important considerations for families. While the introduction of Education Savings Accounts provides a pathway for some students with disabilities to access private education with financial support, it's crucial for parents to understand the trade-offs, particularly regarding the loss of federal protections under IDEA.

The decision of where to educate a child with special needs is deeply personal and complex. By thoroughly researching all available options, understanding the funding mechanisms, and being aware of the legal implications, Texas parents can make the most informed choice to support their child's unique educational journey.

What are your thoughts on how these changes might impact families in Texas? Share your perspectives in the comments below, or explore our other articles on navigating special education resources!

Frequently Asked Questions (FAQ)

Q1: When does the Texas Education Savings Account (ESA) program begin?

The Texas ESA program is set to launch in the fall of 2026.

Q2: How much money can a family receive through an ESA for a student with a disability?

For students with state-recognized disabilities, families can receive up to $30,000 per year through an ESA. This amount is based on what the state would have spent on the student's special education services in public school.

Q3: Will my child keep their Individualized Education Program (IEP) if we use an ESA to attend a private school?

No. Once your child leaves the public school system and enrolls in a private school using an ESA, they are no longer entitled to an IEP or any services and protections guaranteed under the Individuals with Disabilities Education Act (IDEA). Private schools are not required to comply with IDEA.

Q4: Are private schools required to accept students with disabilities if they participate in the ESA program?

No. Private schools participating in the ESA program are not required to admit or accommodate students with disabilities. They maintain their own admissions policies.