Texas Senate Bill 2 Summary

Introduction
Education Savings Accounts (ESAs) empower parents to customize education to their child’s unique needs. State law limits spending to qualified educational expenses and parents decide how funds are spent.

Qualified Educational Expenses
ESAs may be used for:

  1. tuition or fees at accredited

    schools and colleges;

  2. workforce programs;

  3. credentialed tutors;

  4. books, instructional

    supplies, and uniforms;

  5. cocurriculars related to

    classroom instruction;

  6. academic tests;

  7. therapy and technology for disabled students;

  8. transportation;

  9. public school classes and

    services

ESA Funding

  • If a student enrolls in

    a school accredited

    by the Texas Private

    School Accreditation

    Commission, the student

    receives an ESA of

    $10,000.

  • If the participant attends

    an accredited private

    school and is a child with

    a disability, an ESA in the

    amount of $11,500 will be

    granted.

  • All participating students

    are entitled to $2,000

    to use on qualifying

    educational expenses.

Participating Students
Texas children from PK through grade 12 are eligible to apply for an ESA. If there are more applicants than funds can support, up to 80% of available positions will be assigned by lottery to public school students with a household income of less than $160,750 for a family of four or students with a disability. The remaining positions will be open to all students.

Participating Educators
Any accredited school or non-profit college can opt in to serve ESA students. Active or retired teachers from accredited K-12 schools or non-profit colleges can tutor ESA students. Licensed therapists can serve ESA students. Parents may also pay out of pocket for qualified educational expenses and be reimbursed.

Legal protections
ESAs are completely opt-in. Recipients of funds cannot be considered state actors. Limitations and requirements that are contrary to religious or constitutional values cannot be imposed. Strong legal protections ensure parents and educators can make the best decisions for children: participants will not be required to modify their values, instruction, curriculum, admission or employment policies. No federal funds will be used.

Administrator
The Comptroller would administer the program with the help of up to five Educational Assistance Organizations (EAOs). Interested educators would apply to the Comptroller; students would apply to an EAO. EAOs would help participating families find options in their community and manage account transactions. Revenue Source ESAs would be funded by state revenue. No federal funds nor funds from Texas’ public school accounts (ex. FSP) are used.

Accountability
With ESAs, parents and teachers collaborate directly to provide children the instruction and support they need, when they need it. This is effective accountability. ESAs provide financial safeguards and transparency: funds are held in a program account, may only be used for qualified educational expenses, and the program would be independently audited. Spending on non-qualified educational items would result in suspension. ESAs provide academic transparency: certified educational assistance organizations will be required to publish an annual report regarding: student enrollment and waitlists; family satisfaction; assessment results; financial impact; and college, career, and military readiness.