Texas Attorney General Clarifies ESA Program Exclusions

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San Antonio, January 27, 2026

Texas Attorney General Ken Paxton has confirmed that the state’s Comptroller can exclude private schools from the new Education Savings Account (ESA) program if found violating laws prohibiting support for foreign terrorist organizations. This decision follows inquiries regarding schools with alleged ties to foreign entities. The Texas Education Freedom Accounts (TEFA) program, set to launch in the 2026–27 school year, aims to provide taxpayer-funded grants for educational expenses. Paxton emphasized the importance of not directing taxpayer money towards organizations linked to terrorism or foreign adversaries.

San Antonio, Texas

Texas Attorney General Ken Paxton has affirmed that the state’s Comptroller has the authority to exclude private schools from the new Education Savings Account (ESA) program if they are found to be in violation of laws prohibiting support for foreign terrorist organizations or certain foreign ownership restrictions.

This opinion responds to a request from Acting Comptroller Kelly Hancock, who sought clarification on whether private schools with alleged ties to the Chinese government or the Council on American-Islamic Relations (CAIR) could be barred from participating in the program. Paxton’s office stated that while it does not make determinations about specific schools, the Comptroller’s Office is responsible for investigating and determining eligibility based on these criteria.

The Texas Education Freedom Accounts (TEFA) program, set to begin in the 2026–27 school year, aims to provide taxpayer-funded grants to eligible students for educational expenses, including private school tuition. The program has faced scrutiny over concerns that it could direct public funds to institutions with controversial affiliations. In response, Paxton emphasized that taxpayer dollars should not fund organizations linked to terrorism or foreign adversaries.

While the Attorney General’s opinion is non-binding, it serves as guidance for state agencies. The Comptroller’s Office has not publicly identified any schools under review, and the process for determining eligibility continues. The program is scheduled to open for family applications on February 4, 2026.

Overview of the TEFA Program

The TEFA program is designed to enhance educational choices for families across Texas. Launching in the 2026–27 school year, it promises to give eligible students a useful resource for funding educational expenses, which can include various non-public school options. This initiative aims to empower parents by providing financial flexibility so they can choose the best educational setting for their children, a move that stands to benefit local economies as families invest in diverse educational paths.

Implications of the Attorney General’s Opinion

The legal opinion issued by Attorney General Paxton underscores the importance of accountability in the TEFA program. By allowing the Comptroller’s Office the authority to exclude schools associated with foreign adversaries or groups linked to terrorism, this measure fosters a safe and secure educational environment. Such vigilance ensures that taxpayer money is allocated in a manner consistent with Texas values and priorities.

Eligibility Criteria and Application Process

Families interested in the TEFA program should be aware of the eligibility requirements that will soon be established by the Comptroller’s Office. Although the specific schools currently under review have not been disclosed, there will be clear protocols in place for determining participation in the program. The application process opens on February 4, 2026, offering families ample time to prepare their submissions.

Community Response and Concerns

The Road Ahead for Texas Education

As Texas moves towards the implementation of the TEFA program, it stands at a pivotal point for educational reform. The continued review process by the Comptroller’s Office will be crucial in setting the standard for eligibility and in safeguarding against misuse of funds. The coming months will be critical in shaping the future landscape of education in Texas, influencing how families can utilize these new financial options.

In conclusion, the TEFA program represents a significant step in advancing educational opportunities for students across Texas. The potential to empower families through choice could redefine the state’s educational environment. As San Antonio residents reflect on this evolving situation, community engagement will be key in promoting a supportive and successful launch of the program.

Frequently Asked Questions (FAQ)

What is the Texas Education Freedom Accounts (TEFA) program?

The TEFA program is a new initiative in Texas that provides taxpayer-funded grants to eligible students for educational expenses, including private school tuition, starting in the 2026–27 school year.

What did Attorney General Ken Paxton’s opinion state?

Paxton’s opinion confirmed that the Texas Comptroller has the authority to exclude private schools from the TEFA program if they violate laws prohibiting support for foreign terrorist organizations or certain foreign ownership restrictions.

Who requested this legal opinion?

The opinion was issued in response to a request from Acting Comptroller Kelly Hancock, who sought clarification on the eligibility of private schools with alleged ties to the Chinese government or the Council on American-Islamic Relations (CAIR).

Is the Attorney General’s opinion legally binding?

No, the opinion is non-binding but serves as guidance for state agencies in interpreting and applying the law.

When can families apply for the TEFA program?

Families can begin applying for the TEFA program on February 4, 2026.

Has the Comptroller’s Office identified any schools under review?

As of now, the Comptroller’s Office has not publicly identified any schools under review for exclusion from the program.

What is the purpose of the TEFA program?

The TEFA program aims to provide eligible students with grants for educational expenses, including private school tuition, to enhance educational opportunities in Texas.

What concerns have been raised about the TEFA program?

Concerns have been raised regarding the potential for public funds to be directed to institutions with controversial affiliations, leading to scrutiny and calls for oversight in the program’s implementation.

What is the next step after the Attorney General’s opinion?

The next step involves the Comptroller’s Office continuing its review process to determine the eligibility of private schools for participation in the TEFA program, based on the criteria outlined in the Attorney General’s opinion.

Key Features of the TEFA Program

Feature Description
Program Name Texas Education Freedom Accounts (TEFA)
Start Date 2026–27 school year
Eligible Expenses Private school tuition, educational expenses for homeschoolers, tutoring, career and technical education programs
Application Opening Date February 4, 2026
Program Oversight Texas Comptroller’s Office
Eligibility Criteria Compliance with state laws, including those prohibiting support for foreign terrorist organizations or certain foreign ownership restrictions

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The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

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