HB3/SB2: Vouchers/Education Savings Accounts (ESA)

The Show So Far…4.18.2025

The TX House and the TX Senate each developed their own versions of a voucher/Educational Savings Plan (ESA) bill.  The House version is HB 3.  The Senate version is SB 2.

The Senate passed their bill back in February.  More recently, the House Public Education committee substituted the Senate Bill (SB2) for the House’s original bill HB3. 

The House Committee then recommended a few changes. The Full House debated the bill (now referred to as Committee Substitute SB2 or C.S.SB2) and passed the substituted bill with the suggested changes on April 17, 2025.

Summary of key parts of the Voucher/ESA Bill as passed by the TX House

Who is eligible to participate?

• Any child eligible to attend public school in Texas or to enroll in a public pre-K program is eligible to participate in the Voucher/ESA program.

What are the amounts available for students?

• $10,000, per student, for private school students
• $11,500, per student for private school students with disabilities
• $2,000, per student, for homeschool students
• +$500, per student, supplement for homeschoolers with disabilities

What is the total Funding amount available for the program for the whole state?

• The initial program funding is capped at $1 billion for the 2026–2027 biennium.
• However, the bill provides a framework for the legislature to increase funding in subsequent biennia to cover all eligible participants, including those on the waiting list. 

In the event that more students apply than can be served by the funds available, how will students who want to participate in this program be prioritized?

Students who are transferring from public school to private school get first priority for the 2025 biennium.  The priority for public school transfers expires after the 2027 school year.   

After public school transfer student requests have been accommodated, requests from students currently attending private school will be considered.

Public school transfer applications will be considered in the following order.  Once those applications have been considered, applications from current private school students will be considered in the same order.

• First: Children with disabilities from families earning at or below 500% of the Federal Poverty Guideline (FPL). In 2025, this would be an income threshold of $160,750 annually​ for a family of four.  
• Next: Children from families earning at or below 200% of the FPL. In 2025, this would be an income threshold of $64,300 annually​ for a family of 4.
• Next: Children from families earning between 200% and 500% of the FPL. In 2025, this would be an income threshold of $64,301 to $160,750  for a family of four.
• Finally, Children from families earning above 500% of the FPL.  In 2025, this would be an income threshold of $160,750 annually​ for a family of four.  Note: Participation for this group is capped at 20% of the program’s total expenditures for the 2026–2027 school year. This cap expires after the 2027 school year.  

What are the requirements for Private Schools who want to be able to accept Voucher/ESA Funds?

• Private schools must be accredited by an agency recognized by the Texas Private School Accreditation Commission or the Texas Education Agency.​
• Participating students are required to take a nationally norm-referenced assessment approved by the state. Please note a “norm-referenced assessment” is a different kind of assessment than the STAAR test:
  • Norm-referenced assessments (e.g. The Iowa Test of Basic Skills) are used to compare a student’s performance to that of a larger group of peers, often nationwide. Scores are reported as percentiles (e.g., “Johnny is in the 75th percentile” means he scored better than 75% of test-takers). They are used to identify where a student stands in relation to others.
  • Criterion-referenced assessments (e.g. The STAAR) are used to measure a student’s performance against a fixed set of standards or criteria, not against other students. Scores are reported in achievement levels (e.g., “Did Not Meet,” “Approaches,” “Meets,” “Masters” grade level). They are used to determine whether a student has mastered specific content or skills.
• Private schools retain the right to set and enforce their own admissions standards. They are not obligated to accept all applicants, even if the applicants are eligible for ESA funds.
• Private schools must inform parents that they are not required to provide the same special education services as public schools under the Individuals with Disabilities Education Act (IDEA).
• Private schools must be in operation for at least two years before they can accept Vouchers/ESAs. ​

Will the voters in Texas be voting on this bill in November?

• No. While there was an attempt by House Democrats to introduce an amendment requiring voter approval for the Voucher/ESA program, that effort was unsuccessful.

Next Steps for this Bill

• Senate Bill 2 (SB2), now sometimes referred to as C.S.SB2, has passed the Senate and has passed the House with a few revisions.
• The next step is for the Senate to consider the changes made by the House. If the Senate does not agree with these amendments, a conference committee made up of members from both chambers will be formed to reconcile the differences.
• Once a final version is agreed upon, both the Senate and the House must approve it.
• The bill will then be sent to Governor Greg Abbott, who can either sign it into law, veto it, or allow it to become law without his signature.