Legislative Appropriations Request for vouchers expands taxpayer funding without accountability or transparency for program performance

FOR IMMEDIATE RELEASE

September 9, 2026

CONTACT: mstern@osod.org

Legislative Appropriations Request for vouchers expands taxpayer funding without accountability or transparency for program performance

The Comptroller is requesting at least $2.3 billion in taxpayer dollars to fund the next two years of the voucher program

AUSTIN, Texas – Today, the Legislative Budget Board held a hearing on the Comptroller’s Legislative Appropriations Request (LAR) for the Texas Education Freedom Account (TEFA) voucher program. The Comptroller is seeking to increase funding for vouchers from the current $1 billion to potentially $4.4 billion of taxpayer dollars. OSOD and TXCVT joined with public education partners to testify against increased funding without a comprehensive program evaluation that includes a clear picture of who is being served, and academic outcomes of its participants.

“A reporting gap in SB 2 means that policymakers and the public may not receive a longitudinal report until year five of the voucher program, leaving legislators and Texans without the information we need to evaluate if vouchers are truly delivering on the promises made to taxpayers,” said Dee Carney, Director of the Texas Center for Voucher Transparency. “Texans also need to know who is actually receiving and able to use a voucher. The data show a consistent pattern: nearly 75% of applicants, 70% of awardees, and 80% of students on the waitlist were previously enrolled in private school or homeschool – not public school. Would additional funding expand educational opportunity, or primarily subsidize choices that private and homeschool families have already made?”

Evaluating the TEFA voucher program before deciding whether to expand it ensures that taxpayer funded education decisions are based on transparency, fiscal responsibility, and fairness.

Administrative Costs Could Balloon if the Program Budget Increases

  • SB 2 allows 3% of all taxpayer funds appropriated for the program to be deducted for Comptroller administrative costs and 5% to be deducted for a certified educational assistance organization (CEAO) to administer the program (Sec. 29.362(b) and (c)). 
  • Known administrative costs for this biennium include $26 million for Odyssey, the CEAO selected by the Comptroller, which includes a $2.01 million marketing commitment. 
  • Odyssey’s contract includes an option to renew the contract at a renegotiated rate if the appropriated funding for the voucher program increases by at least 25%.

“Comptroller Huffines has called for taxpayer dollars to support students, not bureaucracy and central administration. Yet under his TEFA LAR, administrative funding for the voucher program could balloon to $184 million in taxpayer funds over the next biennium,” said Carrie Griffith, Executive Director of Our Schools Our Democracy. “As public schools close around the state because of budget deficits and enrollment declines, Texans need to know whether funding for vouchers is actually reaching students and improving academic outcomes – or just increasing statewide administrative bloat.”

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The Texas Center for Voucher Transparency (TXCVT) is an initiative of Our Schools Our Democracy, a Texas-based nonpartisan and independent 501c3 nonprofit organization established to protect the fundamental rights of all Texans to a free, public education. TXCVT supports transparency, fiscal responsibility, and fairness in the implementation of the $1 billion taxpayer-funded Texas Education Freedom Accounts (TEFA) voucher program.