733 Texas Districts Could Lose $300M in Funding

Families weighing Texas voucher options should know that state funding follows each student who leaves a public school.

Updated on Nov. 10, 2026 in Financial Aid

Bold flat-color editorial illustration of a single tall hopper spilling a thin stream of coins onto a wide, flat Texas prairie under an open sky. — Texas school districts could lose nearly $300 million this year as students leave for vouchers, with state funding following each student out of public schools. AI Illustration. Upload story photo >

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733 Texas school districts could lose nearly $300 million in state funding this school year as students leave public schools for private schools or homeschooling through the Texas Education Freedom Accounts voucher program. The estimate, from a Texas Center for Voucher Transparency and Every Texan analysis, applies to districts statewide.

Why it matters

State funding for Texas public schools is tied to student enrollment, so each student who takes a voucher also takes state dollars out of their district. For families weighing public, private, or homeschool options, the shift affects how much support remains in the schools their neighbors and younger siblings still attend.

Most participating private school students receive $10,474, students with disabilities can receive up to $30,000, and homeschooling families receive $2,000 for eligible expenses. In Houston ISD, 1,207 students were awarded vouchers in the 2024-25 school year, when Black students made up 21% of the district's population.

The players

Texas Center for Voucher Transparency

A nonprofit that tracks Texas school voucher participation and funding effects, and co-authored this analysis.

Every Texan

A nonpartisan Texas public policy research organization, and co-author of this analysis.

The details

Texas ties state education funding to enrollment, so when a student uses a Texas Education Freedom Accounts voucher to attend a private school or homeschool, the state dollars that followed that student no longer stay with the district. The analysis estimates that roughly 8,100 former public school students in the Houston-Galveston region are accepting vouchers, which could cost districts in that region about $68 million. Districts with relatively few participants face their own share of the $67 million in additional losses, and the combined total reaches nearly $300 million across 733 districts.

The 2024-25 school year: 1,207 students in Houston ISD were awarded vouchers, when Black students made up 21% of the district's population.
This school year: 733 districts could lose nearly $300 million in state funding.

Education Landscape

The Texas Education Freedom Accounts program is the state's central voucher effort, and this analysis shows how its enrollment-linked funding model moves dollars from public districts to private and home-based education. The analysis points to a funding question that districts across the state now face as the program grows.

If you are weighing a voucher or homeschool option, check the program's application deadlines and the exact amount tied to your situation before deciding. Questions about how a voucher interacts with other aid can be directed to the Texas Education Freedom Accounts program office or a qualified education adviser.

The takeaway

Enrollment-based funding means that choices about school type affect both family budgets and the resources left for remaining students. Families comparing options should confirm voucher amounts and eligibility with the program office before making a decision.