All Roll Calls
Yes: 4,284 • No: 2,939
TexasSB 289th Legislature Regular SessionSenateWALLET
Relating to the establishment of an education savings account program.
Sponsored By: Paul Bettencourt (Republican), Greg Bonnen, Brad Buckley, Donna Campbell (Republican), Creighton, James Frank, Brent Hagenbuch (Republican), Cody Harris, Adam Hinojosa (Republican), Todd Hunter, Phil King (Republican), Mayes Middleton (Republican), Tan Parker (Republican), Angela Paxton (Republican)
Signed by Governor
Education--Higher--GeneralEducation--Primary & Secondary--Charter SchoolsEducation--Primary & Secondary--FinanceEducation--Primary & Secondary--PrivateEducation--Primary & Secondary--SpecialEducation--School DistrictsState Finances--Management & ControlAUDITS & AUDITORSCOMPTROLLER OF PUBLIC ACCOUNTSEDUCATION AGENCY, TEXASSUPREME COURT
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Bill Overview
Analyzed Economic Effects
21 provisions identified: 10 benefits, 1 costs, 10 mixed.
Annual education funding with payment limits
The Comptroller sends program money to certified organizations for the children they serve. Annual account funding generally equals 85% of the latest estimated statewide average state and local funding per public-school student. Children with disabilities receive added funding based on their individual education plans, with an annual transfer cap of $30,000. The law also contains a separate $2,000 yearly transfer limit; the supplied summaries do not clearly resolve its application. Late enrollment reduces funding proportionally, and transfers must reach at least 25% by July 1, 50% cumulatively by October 1, and the remainder by April 1.
Education accounts for eligible Texas children
Beginning with the 2026–2027 school year, Texas provides education accounts for approved costs, subject to available funding. Children must be U.S. citizens, nationals, or lawfully admitted, and eligible for Texas public school or its prekindergarten program. Parents can prove residency with listed documents or a notarized affidavit. Participation ends at graduation, loss of school eligibility, or a Comptroller finding of ineligibility. It also ends when public-school enrollment makes the child count toward state school funding.
Disability evaluations and guidance for families
Parents can request a district disability evaluation for a child not enrolled in a district or charter school. The district must finish within 45 school days after receiving parental consent. If the child qualifies for special education, the district must create an individual education plan for program eligibility. Program organizations must give every applicant a notice explaining differences between private- and public-school disability rights and services. Private schools must also give that notice when enrolling a participating child with a disability.
Smaller education accounts for late joiners
Children who join the education savings account program after the school year starts receive reduced transfers based on their enrollment date. The provision does not give a proration formula. The education commissioner must set the statewide funding estimate used for transfers by January 15 before each school year. That estimate includes projected school funding and the state's required teacher retirement contribution.
Families face limits on education purchases
Accounts pay approved providers for private-school tuition and meals, higher education, approved credential programs, online courses, materials, tests, tutoring, and fee-based transportation. They also cover public-school services that do not count toward school funding and educational therapies not covered by government benefits or insurance. Required or physician-prescribed technology is covered, but hardware and software cannot exceed 10% of the year's account transfer. Accounts cannot pay relatives within the third degree by blood or marriage, and providers cannot return program money through rebates, refunds, or credits. Families cannot withdraw cash or receive direct payments or reimbursements, but can use their own money for education costs the account does not cover.
Families keep balances until eligibility ends
Unused account money carries into the next fiscal year while the account remains open. When a child becomes ineligible, the account closes after approved expenses are paid. Any remaining balance returns to the program fund, not the household. Certified organizations must also return interest and other earnings to the fund every quarter.
Family income shapes education account access
When funding cannot cover all applicants, lotteries prioritize participating children's siblings, returning former participants, then other eligible children. Within each group, priority goes to children with disabilities at or below 500% of federal poverty guidelines. Next come households at or below 200%, above 200% but below 500%, then at or above 500%. Eligible siblings applying together receive approval together when one is approved; waiting lists follow the same priorities. Each school year, spending for households at or above 500% is capped at 20% of that year's appropriation, with priority for children enrolled in public or charter school for at least 90% of the prior year.
Parents face account duties and penalties
Parents must request only approved spending, share required assessment results, and not sell items bought with program money. They must report public-school enrollment, graduation, or loss of specified school eligibility within 30 business days. The Comptroller must suspend payments for violations and give parents 30 days to respond and correct problems before deciding closure or reinstatement. The Comptroller can recover improper payments, including related interest, for unapproved costs, ineligible children, or unapproved providers. Participants can appeal eligibility, expense, or removal decisions to the Comptroller, but this is not a formal contested-case hearing and the decision is final under the program.
Texas funds accounts within spending caps
Texas creates a dedicated account in its general revenue fund for education account benefits and administration. It can receive appropriations, transfers, investment earnings, gifts, grants, and donations, used only for program purposes. Total program spending cannot exceed $1 billion for the two-year budget period beginning September 1, 2025; this cap expires September 1, 2027. The Comptroller can use up to 3% of program appropriations for administration and up to 5% of each fiscal year's appropriation for certified organizations' services. Child account transfers cannot use federal money, the Available School Fund, or the state instructional materials and technology fund.
No higher prices for participating children
Education providers and product sellers cannot charge participating children more than their standard price for the same service or product. The law does not require them to offer a discount.
Parents gain records and student privacy
Assessment administrators must give parents their child's results, including percentile rank when available. Applicant and participating families can request records held by the district or charter school their child otherwise attends. Records can go to the parent or, when applicable, the child's private school. Assessment results and student records held by the Comptroller or certified organizations are confidential and exempt from public disclosure. Organizations, providers, and vendors must follow student privacy laws and cannot sell or otherwise distribute child information without participant consent.
Parents get fee-free online account tools
Parents get online access to balances, payment requests, and account history. Certified organizations and their affiliates cannot charge account-use fees, including transaction fees. Organizations must pay providers within 10 business days after verifying a request, without exceeding the account balance. Families in good standing do not need a new application each year, though an annual notice of continued participation is allowed. Organizations must give parents yearly guidance about applications, spending, and their responsibilities.
Tax protection for parents' education accounts
Transfers to a participating child's education savings account are not taxable income to the parent under this law. This protection does not override federal law or another state's law that treats the transfers differently. The law does not set a dollar amount of tax savings.
Education providers keep key institutional freedoms
Receiving program money alone does not make education providers or vendors government actors or recipients of federal financial aid. The law limits actions by state agencies, officials, and certified program organizations that conflict with providers' religious or institutional values. It also protects specified choices about curriculum, admissions, operations, and religious practices.
Provider screening and education fraud referrals
The Texas Comptroller can check the educator misconduct registry when approving program providers and vendors. The Comptroller can also obtain state and federal criminal records for employees seeking approval to serve participating children with program money. When evidence shows program fraud, misuse of money, or another legal violation, the Comptroller must notify the local prosecutor. This referral duty covers program organizations, providers, vendors, and participants.
Public schools get returning-student funding
Public districts and charter schools get extra funding when a child leaves the program and enrolls during the school year. The amount equals 10% of the basic allotment multiplied by the child's average daily attendance at that school. For the first school year after participation ends, the child is excluded from the enrolling school's state accountability rating. By October 1 and February 1, certified organizations must check that participants are not counted for public-school funding. They must notify the Comptroller when a participant is counted or is not enrolled in a preapproved private school.
Texas adds account support and audits
The Comptroller can certify up to five Texas-registered organizations to help with applications, eligibility, payments, parent services, and the website. Organizations must show they can perform program work and meet cybersecurity requirements. The Comptroller can use program funds for advertising and outreach. A private entity must audit accounts and eligibility data at least annually, and the state auditor must audit organizations' verification work. The state auditor must randomly check 10% of applications; organizations must supply required records, and providers must show third-party audits or financial reviews meeting accreditation standards.
Texas can accept education program donations
The Texas Comptroller can seek and accept public or private gifts, grants, and donations to administer the education account program. Uses include program setup and contracting for the required report. The law sets no donation amount and requires no one to contribute. It also places the Comptroller under Health and Safety Code Chapter 810; the supplied provision does not explain those requirements.
Children's records shared for eligibility checks
The Texas Education Agency, school districts, and charter schools must share available records requested by certified program organizations to verify eligibility. These records can include a child's enrollment and attendance information. Program organizations may keep the records only as long as needed to decide eligibility. Federal and state student privacy protections still apply.
Families use screened providers with limits
Families can use account money only with approved providers and vendors, reviewed through a rolling application process. Approval requires category-specific accreditation, qualifications, safety checks, and Texas location or business registration; eligibility must be verified. Private schools generally need two continuous years of campus operation, with a stated exception for prekindergarten and kindergarten providers. Providers must follow payment rules, report lost qualifications within 30 days, and return improperly received money plus related earnings. Noncompliant providers are immediately suspended from payments and receive 30 days to respond and correct problems before removal or reinstatement.
Program lawsuits bring rights and limits
Participants, eligible children, education providers, and product vendors can join lawsuits challenging the program's constitutionality. Courts can require a shared brief, but cannot require them to join the State's brief. Beginning September 1, 2025, the Attorney General must represent the State in challenges to the program's constitutionality or validity. In those cases, courts cannot award attorney fees against the State; the law also excludes a separate statutory fee-award rule.
Sponsors & Cosponsors
Sponsors
Paul Bettencourt
Republican • Senate
Greg Bonnen
House
Brad Buckley
House
Donna Campbell
Republican • Senate
Creighton
Affiliation unavailable
James Frank
House
Brent Hagenbuch
Republican • Senate
Cody Harris
House
Adam Hinojosa
Republican • Senate
Todd Hunter
House
Phil King
Republican • Senate
Mayes Middleton
Republican • Senate
Tan Parker
Republican • Senate
Angela Paxton
Republican • Senate
Cosponsors
Daniel Alders
House
Trent Ashby
House
Cecil Bell Jr.
House
Keith Bell
House
Brian Birdwell
Republican • Senate
Benjamin Bumgarner
House
Angie Chen Button
House
Briscoe Cain
House
Giovanni Capriglione
House
David Cook
House
Tom Craddick
House
Charles Cunningham
House
Pat Curry
House
Mano DeAyala
House
Mark Dorazio
House
Paul Dyson
House
Caroline Fairly
House
Pete Flores
Republican • Senate
Gary Gates
House
Stan Gerdes
House
Hancock
Affiliation unavailable
Caroline Harris Davila
House
Richard Hayes
House
Cole Hefner
House
Hillary Hickland
House
Janis Holt
House
Andy Hopper
House
Lacey Hull
House
Carrie Isaac
House
Helen Kerwin
House
Stan Kitzman
House
Marc LaHood
House
Brooks Landgraf
House
Jeff Leach
House
Terri Leo Wilson
House
Mitch Little
House
Janie Lopez
House
AJ Louderback
House
David Lowe
House
J. M. Lozano
House
John Lujan
House
Shelley Luther
House
Don McLaughlin
House
John McQueeney
House
Will Metcalf
House
Morgan Meyer
House
Brent Money
House
Matt Morgan
House
Candy Noble
House
Mike Olcott
House
Tom Oliverson
House
Angelia Orr
House
Jared Patterson
House
Dennis Paul
House
Katrina Pierson
House
Keresa Richardson
House
Schatzline
Affiliation unavailable
Mike Schofield
House
Alan Schoolcraft
House
Charles Schwertner
Republican • Senate
Matt Shaheen
House
Joanne Shofner
House
Shelby Slawson
House
John T. Smithee
House
Kevin Sparks
Republican • Senate
David Spiller
House
Valoree Swanson
House
Carl H. Tepper
House
Tony Tinderholt
House
Steve Toth
House
Ellen Troxclair
House
Cody Vasut
House
Denise Villalobos
House
Wes Virdell
House
Trey Wharton
House
Terry M. Wilson
House
Roll Call Votes
Senate vote • 4/24/2025
Record vote
Yes: 19 • No: 12
House vote • 4/17/2025
Record vote
Yes: 86 • No: 60
House vote • 4/17/2025
Record vote
Yes: 86 • No: 61
House vote • 4/17/2025
Record vote
Yes: 88 • No: 58
House vote • 4/17/2025
Record vote
Yes: 86 • No: 61
House vote • 4/17/2025
Record vote
Yes: 87 • No: 61
House vote • 4/17/2025
Record vote
Yes: 86 • No: 61
House vote • 4/17/2025
Record vote
Yes: 87 • No: 61
House vote • 4/17/2025
Record vote
Yes: 85 • No: 59
House vote • 4/17/2025
Record vote
Yes: 84 • No: 60
House vote • 4/17/2025
Record vote
Yes: 87 • No: 61
House vote • 4/17/2025
Record vote
Yes: 86 • No: 58
House vote • 4/17/2025
Record vote
Yes: 85 • No: 60
House vote • 4/17/2025
Record vote
Yes: 85 • No: 60
House vote • 4/17/2025
Record vote
Yes: 86 • No: 61
House vote • 4/17/2025
Record vote
Yes: 84 • No: 60
House vote • 4/17/2025
Record vote
Yes: 87 • No: 61
House vote • 4/17/2025
Record vote
Yes: 86 • No: 63
House vote • 4/17/2025
Record vote
Yes: 87 • No: 60
House vote • 4/16/2025
Record vote
Yes: 85 • No: 60
House vote • 4/16/2025
Record vote
Yes: 87 • No: 57
House vote • 4/16/2025
Record vote
Yes: 88 • No: 60
House vote • 4/16/2025
Record vote
Yes: 86 • No: 61
House vote • 4/16/2025
Record vote
Yes: 0 • No: 0
House vote • 4/16/2025
Record vote
Yes: 86 • No: 61
House vote • 4/16/2025
Record vote
Yes: 87 • No: 61
House vote • 4/16/2025
Record vote
Yes: 87 • No: 61
House vote • 4/16/2025
Record vote
Yes: 85 • No: 60
House vote • 4/16/2025
Record vote
Yes: 85 • No: 58
House vote • 4/16/2025
Record vote
Yes: 85 • No: 59
House vote • 4/16/2025
Record vote
Yes: 124 • No: 18
House vote • 4/16/2025
Record vote
Yes: 145 • No: 1
House vote • 4/16/2025
Record vote
Yes: 91 • No: 47
House vote • 4/16/2025
Record vote
Yes: 86 • No: 62
House vote • 4/16/2025
Record vote
Yes: 85 • No: 59
House vote • 4/16/2025
Record vote
Yes: 85 • No: 61
House vote • 4/16/2025
Record vote
Yes: 85 • No: 61
House vote • 4/16/2025
Record vote
Yes: 86 • No: 61
House vote • 4/16/2025
Record vote
Yes: 84 • No: 59
House vote • 4/16/2025
Record vote
Yes: 84 • No: 60
House vote • 4/16/2025
Record vote
Yes: 87 • No: 57
House vote • 4/16/2025
Record vote
Yes: 86 • No: 61
House vote • 4/16/2025
Record vote
Yes: 85 • No: 59
House vote • 4/16/2025
Record vote
Yes: 83 • No: 57
House vote • 4/16/2025
Record vote
Yes: 87 • No: 59
House vote • 4/16/2025
Record vote
Yes: 85 • No: 62
House vote • 4/16/2025
Record vote
Yes: 86 • No: 60
House vote • 4/16/2025
Record vote
Yes: 84 • No: 62
Senate vote • 2/5/2025
Record vote
Yes: 11 • No: 20
Senate vote • 2/5/2025
Record vote
Yes: 11 • No: 20
Senate vote • 2/5/2025
Record vote
Yes: 0 • No: 0
Senate vote • 2/5/2025
Record vote
Yes: 20 • No: 11
Senate vote • 2/5/2025
Record vote
Yes: 0 • No: 0
Senate vote • 2/5/2025
Record vote
Yes: 0 • No: 0
Senate vote • 2/5/2025
Record vote
Yes: 0 • No: 0
Senate vote • 2/5/2025
Record vote
Yes: 0 • No: 0
Senate vote • 2/5/2025
Record vote
Yes: 12 • No: 19
Senate vote • 2/5/2025
Record vote
Yes: 0 • No: 0
Senate vote • 2/5/2025
Record vote
Yes: 0 • No: 0
Senate vote • 2/5/2025
Record vote
Yes: 0 • No: 0
Senate vote • 2/5/2025
Record vote
Yes: 0 • No: 0
Senate vote • 2/5/2025
Record vote
Yes: 20 • No: 11
Senate vote • 2/5/2025
Record vote
Yes: 11 • No: 20
Senate vote • 2/5/2025
Record vote
Yes: 11 • No: 20
Senate vote • 2/5/2025
Record vote
Yes: 11 • No: 20
Senate vote • 2/5/2025
Record vote
Yes: 11 • No: 20
Senate vote • 2/5/2025
Record vote
Yes: 20 • No: 11
Senate vote • 2/5/2025
Record vote
Yes: 11 • No: 20
Senate vote • 2/5/2025
Record vote
Yes: 25 • No: 5
Senate vote • 2/5/2025
Record vote
Yes: 11 • No: 20
Senate vote • 2/5/2025
Record vote
Yes: 11 • No: 20
Senate vote • 2/5/2025
Record vote
Yes: 11 • No: 20
Senate vote • 2/5/2025
Record vote
Yes: 11 • No: 20
Actions Timeline
Effective on 9/1/25
5/3/2025HouseSigned by the Governor
5/3/2025HouseSent to the Governor
4/29/2025HouseSigned in the House
4/29/2025HouseSigned in the Senate
4/28/2025SenateReported enrolled
4/24/2025SenateSenate concurs in House amendment(s)-reported
4/24/2025HouseRecord vote
4/24/2025SenateSenate concurs in House amendment(s)
4/24/2025SenatePoint of order overruled
4/24/2025SenatePoint of order
4/24/2025SenateRead
4/24/2025SenateHouse amendment(s) laid before the Senate
4/24/2025SenateHouse passage as amended reported
4/22/2025SenateReason for vote recorded in Journal
4/17/2025HouseStatement(s) of vote recorded in Journal
4/17/2025HouseRecord vote (RV#300)
4/17/2025HousePassed
4/17/2025HouseRead 3rd time
4/17/2025HouseAdditional sponsor(s) authorized
4/17/2025HouseRules suspended
4/17/2025HouseReason for vote recorded in Journal
4/17/2025HouseRecord vote (RV#286)
4/17/2025HousePassed to 3rd reading as amended
4/17/2025HouseRecord vote (RV#285)
4/17/2025House
Bill Text
Engrossed
Enrolled
House Committee Report
Introduced
Senate Committee Report
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