TEFA Special Needs Funding

TEFA Special Needs Funding

Children with a disability who attend an approved private school or pre-K/kindergarten program may be eligible for up to $30,000 per year through the Texas Education Freedom Accounts (TEFA) program—significantly more than the standard $10,474. Eligibility for this increased amount depends on having an Individualized Education Program (IEP) on file with the Texas Education Agency. This page explains the IEP vs. 504 distinction, the proof-of-eligibility process, and important considerations for families of children with disabilities.

Last updated: February 2026. Source: educationfreedom.texas.gov, TEA

Funding Amount for Students with Disabilities

ScenarioAmountRequirement
Child with IEP on file with TEAUp to $30,000IEP must be on file by end of application period (March 17, 2026)
Child with 504 plan only$10,474Standard private school amount
Child with proof-of-disability form only$10,474Standard amount; form used for prioritization, not funding tier

The $30,000 amount is based on the funding the child's local school district would receive to provide services under the child's IEP. The actual amount may vary depending on the IEP and district calculations.

IEP vs. 504: Why It Matters for TEFA

Understanding the difference between an IEP and a 504 plan is critical for TEFA funding.

Individualized Education Program (IEP)

  • What it is: A written plan developed under the Individuals with Disabilities Education Act (IDEA) for children who qualify for special education services.
  • Who creates it: The school district, through an Admission, Review, and Dismissal (ARD) committee.
  • TEFA impact: Only children with an IEP on file with the Texas Education Agency are eligible for the increased funding amount (up to $30,000).

Section 504 Plan

  • What it is: A plan under Section 504 of the Rehabilitation Act for children who need accommodations but do not qualify for special education under IDEA.
  • Who creates it: The school or district.
  • TEFA impact: A 504 plan does not qualify a child for the $30,000 tier. A child with only a 504 plan receives the standard $10,474 if attending private school.

Summary

DocumentQualifies for $30K?Qualifies for prioritization as "child with disability"?
IEP on file with TEAYesYes
504 plan onlyNoNo (unless proof-of-disability form submitted)
Proof-of-disability form onlyNoYes

If your child has a 504 plan but not an IEP, they will receive $10,474—not $30,000—if accepted and enrolled in private school. You may still submit a program-approved proof-of-disability form to be considered a "child with a disability" for prioritization purposes.

Who can complete the TEFA Disability Certification Form? A licensed professional qualified to certify a child's disability—such as a physician, nurse practitioner, physician assistant, licensed psychologist or school psychologist, licensed therapist (speech, occupational, physical), audiologist, optometrist, or certified teacher when the disability category allows. The professional must only sign if the disability falls within their scope of practice. If your child already has an IEP on file with TEA, you do not need this form. The form is used only for prioritization, not for the $30,000 funding tier.

EFA IEP and Getting an IEP on File

Some families consider private school or homeschool before their child has been evaluated for special education. To qualify for the $30,000 tier, the child must have an IEP on file with the Texas Education Agency by the end of the application period.

Options for Obtaining an IEP

  1. Current or prior public/charter school enrollment: If your child was previously in a Texas public or charter school and had an IEP, that IEP may already be on file with TEA. Confirm with the district.

  2. Evaluation through the school district: You may request an evaluation from your local school district even if your child is not currently enrolled. The district must consider the request and, if appropriate, conduct an evaluation and hold an ARD meeting to develop an IEP.

  3. EFA IEP (Education Freedom Account IEP): The Texas Education Agency has processes to support families seeking an IEP for ESA/TEFA purposes. Contact TEA or your local district for current procedures. TEA Special Education provides guidance.

  4. Disability Rights Texas: For information on your rights under IDEA and the evaluation process, see Disability Rights Texas and their IDEA Manual.

Proof-of-Eligibility: Checklist

If you are applying for the $30,000 tier, ensure:

  • Your child has an IEP (not just a 504 plan)
  • The IEP is on file with the Texas Education Agency by March 17, 2026
  • You have documentation to support your application (the portal will specify)
  • If using a proof-of-disability form for prioritization only, you have submitted the program-approved form

Official disability-related forms are available from the program toolkit:

See our Resources page for all official documents. Check the application portal for the exact forms and deadlines.

Private School Notice: Rights and Protections

The official TEFA site includes an important notice: A private school is not subject to federal and state laws regarding the provision of educational services to a child with a disability in the same manner as a school district or open-enrollment charter school.

If your child attends a public or charter school, they are entitled to certain rights under the Individuals with Disabilities Education Act (IDEA) and Texas Education Code. Private schools have different obligations. Before enrolling, understand what services the private school will provide and whether they can meet your child's needs.

Resources for understanding your rights:

Prioritization for Children with Disabilities

For prioritization purposes, "children with a disability" includes:

  1. Children with an IEP on file with TEA at the time the application period closes
  2. Children who have submitted a program-approved proof-of-disability form with their application

Both groups may be placed in priority tier 1 (if household income is at or below 500% of the Federal Poverty Level). However, only children in the first group—with an IEP on file—are eligible for the $30,000 amount. Children in the second group receive the standard $10,474 if they attend private school.

Next Steps

  1. Confirm IEP status — Verify whether your child has an IEP on file with TEA and that it will remain on file through March 17, 2026.
  2. Review eligibility — Ensure your child meets all basic eligibility requirements and understand prioritization.
  3. Review application guide — Gather documents and submit before the deadline.
  4. Use the funding calculator — Estimate your potential amount.
  5. Contact Disability Rights Texas — If you need help understanding your rights or the evaluation process.

Frequently Asked Questions (Special Needs)

Does a 504 plan qualify my child for the $30,000 TEFA amount?

No. Only children with an Individualized Education Program (IEP) on file with the Texas Education Agency are eligible for the increased funding amount. A child with only a 504 plan receives the standard $10,474 if attending private school.

What is the difference between an IEP and a 504 plan for TEFA?

An IEP is developed under IDEA for children who qualify for special education. A 504 plan provides accommodations under the Rehabilitation Act. For TEFA, only an IEP on file with TEA qualifies a child for the $30,000 tier. A 504 plan does not.

How do I get an IEP on file with the Texas Education Agency?

If your child attended a Texas public or charter school with an IEP, it may already be on file. Otherwise, you may request an evaluation from your local school district. TEA also has processes for EFA IEP. Contact your district or TEA for current procedures. Disability Rights Texas can help you understand your rights.

Can I use the proof-of-disability form to get the $30,000 amount?

No. The proof-of-disability form is used for prioritization—to be considered a "child with a disability" in the lottery. Only an IEP on file with TEA qualifies a child for the increased funding amount.

Where can I learn more about my rights under special education law?

Disability Rights Texas offers an IDEA Manual and other resources. TEA's Texas Legal Framework and SPEDTEX also provide guidance.