Texas Makes History With $1B School Voucher Program

The Texas House passed Senate Bill 2 on an 86-61 vote in April 2025, approving the state's first universal school voucher program in nearly seven decades. Every present Democrat voted against the measure, which would establish education savings accounts allowing eligible students to access state funding for private school expenses, including tuition, textbooks, transportation and therapy services. The vote represents a watershed moment in Texas education policy, with Republicans prioritizing school choice while Democrats warned of public school harm. Under the program, most K-12 students would receive $10,300 annually—85% of the statewide average per-student funding—while students with disabilities could access up to $30,000 per year. Homeschooled students would receive approximately $2,000. The voucher amounts are tied to public education funding, meaning they rise or fall with state appropriations to traditional schools. Texas parents will begin using vouchers in the 2026-27 school year, with the initial $1 billion budget already showing signs of rapid expansion. Legislative Budget Board projections reveal dramatic cost escalation: the program is anticipated to balloon from $1 billion in the 2026-27 biennium to $6.2 billion by 2028-29 and $7.9 billion by 2030-31. The Texas State Teachers Association's Ovidia Molina called the diversion "absurd," arguing that a $1 billion drain in the current cycle would grow to $3 billion by 2028 and exceed $4 billion by 2030. Critics point to cautionary tales from other states: Arizona's universal voucher program, initially estimated at $65 million, mushroomed to over $700 million. The House modified several provisions before final passage, including requirements that private schools exist for at least two years before joining the program and expanded state auditor oversight of administering organizations. Lawmakers also locked in a 20% cap on funding for families without disabilities earning $156,000 or more annually—ensuring the program remains focused on lower-income and special needs students as Republicans intended. The bill sailed through on a companion measure, House Bill 2, which passed 142-5 and allocated $7.7 billion for public school funding improvements. The passage represents a decisive Republican victory backed by Gov. Abbott, yet it sidesteps a democratic question: House Republicans tabled 44 amendments, including one that would have required a voter referendum on school vouchers in November, effectively blocking Texans from deciding the issue directly. As the program prepares to launch next school year, the real-world impact on Texas's 5.4 million public school students—and whether families already in private schools will simply redirect existing expenses into voucher accounts—remains to be seen.