The Texas Education Freedom Accounts (TEFA) program is expected to open for applications in the 2026–2027 school year, once rules are finalized by the Texas Comptroller and the application system—operated by Odyssey Education, Inc.—is fully launched.
While many details of TEFA are still being finalized, Texas families exploring TEFA IEP requirements for the 2026–2027 school year need to understand:
👉 Students with special needs will receive priority access to TEFA funds
👉 Students with a verified IEP may qualify for significantly higher funding tiers—up to $30,000
But there’s an important requirement:
To qualify for the higher TEFA funding amounts, the student must have a completed IEP from a Texas public school or public charter.
It is expected Texas will roll-out “TEFA IEPs” in 2026 to meet the additional demand expected for IEPs.
This requirement applies even if the student currently attends an online private school like Tenney School Live.
Why This Matters for Online School Students
Many families choose online school because their child thrives with:
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A quieter environment
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Consistent routines
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One-on-one support
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Reduced anxiety
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Flexible pacing
These same students often also have learning differences, attention-related challenges, or anxiety-related needs that may qualify them for TEFA priority status.
However—online private schools cannot create an IEP.
Online programs can support your child’s needs, but the state only recognizes:
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IEPs issued by Texas public schools or public charters
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PEIMS codes (Public Education Information Management System) attached to those IEPs
Odyssey Education (the TEFA program operator) will use the PEIMS code to calculate funding levels.
This is why beginning the evaluation process now is so important.
The Evaluation Timeline Can Take Several Months
If a family waits until TEFA applications open in early 2026, it may be too late.
Here’s the typical process through a public school:
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Written request for evaluation
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School must respond within 15 school days
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If approved, the evaluation must be completed within 45 school days
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The IEP meeting is held within 30 calendar days
That means the full process may take 90–120 days, depending on breaks and district capacity.
With thousands of families expected to pursue IEP evaluations before TEFA goes live, delays are likely.
Will TEFA Cover Online School Tuition?
Based on the law as written:
✔ Yes, online private school tuition is eligible
✔ Yes, parents can use ESA/TEFA funds for virtual programs
✔ Yes, online tutoring or supplemental services may also qualify
However, the Comptroller and Odyssey Education will provide final clarification in 2025–2026.
Until then, online school families should prepare by:
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Understanding eligibility
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Securing documentation
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Beginning the IEP evaluation process early
What About 504 Plans?
TEFA rules currently indicate:
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A 504 plan may qualify a student for basic-level TEFA eligibility
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Only an IEP, with a corresponding PEIMS code, qualifies a student for increased TEFA funding tiers
So while a 504 may help a student gain entry into TEFA, it does not qualify them for the higher $20,000–$30,000 funding amounts.
How Online School Families Can Start the IEP Process
Even if your child attends Tenney School Live, you are legally entitled to request an evaluation from your local public school district.
Families typically:
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Determine the resident public school district
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Send a written evaluation request to the district’s Special Education office
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Keep written records of dates and responses
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Follow through the evaluation timeline
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Attend the IEP meeting once testing is complete
TSL can help families understand what the school may look for, but we are not permitted to perform or issue the evaluation.
Stay Updated as TEFA Information Develops
Both the Texas Comptroller and Odyssey Education will release more detailed program guidance in 2025 and early 2026.
If you want to stay informed as soon as updates are released, you can join our TEFA update list here:
