If you searched “TEFA” or “Texas Education Freedom Accounts” and landed here looking for the Education Freedom Tax Credit (EFTC), you’re close, but you may be looking for a different school choice opportunity than the one this page is about. Both have “education” and “freedom” in the name. Both aim to give families more say over where a child goes to school. Both are excellent options for parents in Texas. In future years, families might be able to use both. But they are not the same thing, they don’t work the same way, and mixing them up could mean applying to the wrong one, or missing your window on either. Here’s exactly how each one works, and how to find the one you’re actually after.
Two School Choice Opportunities, One Coincidence of Names
TEFA stands for Texas Education Freedom Accounts, a state-level program. The EFTC is the Education Freedom Tax Credit, a federal tax credit. Both exist to expand a family’s education options beyond their assigned public school, but they run through entirely different channels: one through the Texas state budget, the other through the federal tax code. Sharing “education freedom” in the name is a coincidence of branding, not a sign the two opportunities for expanding school choice are the same.
Texas Education Freedom Accounts (TEFA): A State Program, Already Underway
TEFA is an education savings account (ESA) program created by the Texas Legislature in 2025, funded by a $1 billion state appropriation. It’s administered by the Texas Comptroller of Public Accounts, and it works by funding accounts that families can use on approved education expenses, including private school tuition, tutoring, curriculum and educational therapies.
For the 2026-27 school year, TEFA funding depends on the student: $10,474 a year for a student attending an accredited private school, up to $30,000 for a student with a qualifying disability, and $2,000 for a homeschooled student. To qualify, a family needs to be a Texas resident, and the student needs to be a U.S. citizen or otherwise lawfully present and eligible to attend a Texas public school or pre-K program.
TEFA isn’t a future program. The application window for its first year closed in spring 2026, and the state reports it received more than 274,000 applications and issued more than 100,000 awards, funding that began reaching families in July 2026. If you’re looking for TEFA itself, the Texas Education Freedom Accounts program is the right place to go, and it’s worth watching that site directly for its next application cycle.
The Education Freedom Tax Credit (EFTC): A Federal Credit, Not Yet Live
The EFTC works nothing like TEFA. It isn’t money a family applies for and receives directly. It’s a federal tax credit. A donor gives to a qualified Scholarship Granting Organization (SGO) like AFC Scholarship Fund, a nonprofit that funds K-12 scholarships, and that gift earns the donor a dollar-for-dollar federal tax credit: up to $1,700 for individuals, or up to $3,400 for married couples filing jointly. The scholarship the donation funds can go to a student almost anywhere in the country. Roughly 90% of American students are eligible.
Nothing about the EFTC is state-specific. A donor in any state can give to an SGO serving students in any state, including Texas, which means a Texas family isn’t limited to TEFA as their only option.
Be the First to Know
Get notified when the Education Freedom Tax Credit launches so you don’t miss the opportunity to support K–12 students while benefiting from a federal tax credit.
Timing is the other big difference. Donations to a qualified SGO can begin January 1, 2027. The credit is claimed the following year, when a donor files their federal taxes. Where TEFA is already funding students for this school year, the EFTC hasn’t opened yet.
For Texas Families: You’re Not Choosing Between Them
Because TEFA and EFTC are separate, passed by separate levels of government, on separate timelines, a Texas family isn’t limited to one or the other. A student who already has a TEFA account isn’t excluded from also benefiting from a scholarship funded through the EFTC once donations open. A family that didn’t receive a TEFA award in this year’s lottery isn’t shut out of the EFTC either, since the EFTC works through participating SGOs rather than a single state application. The two simply don’t overlap in how they’re funded or applied for, so there’s no reason either one should be treated as a substitute for the other.
Which One Should You Look Into Right Now?
If you’re a Texas family trying to use funds already set aside for your child in the upcoming school year, TEFA is the program to look into, and educationfreedom.texas.gov is the state’s own resource for eligibility and timelines.
If you’re trying to get ready for the Education Freedom Tax Credit before donations open in 2027, AFC Scholarship Fund’s resource center is where to start. It takes about a minute to see what your household’s estimated credit could be worth, with no obligation. You can also read the full how the EFTC works explainer for the complete mechanism.
The Bottom Line
TEFA and the EFTC were never meant to be confused with each other, but a near-identical name makes that easy to do. TEFA is a Texas program, already funding students this school year, run through a state account. The EFTC is a federal tax credit for donors, not yet open, that funds scholarships through SGOs nationwide. Knowing which one you’re actually looking for is the fastest way to get to the right resource, and for many Texas families, the honest answer may eventually be both.
Looking for TEFA? Start at educationfreedom.texas.gov. Getting ready for the EFTC? See your estimated credit at the AFC Scholarship Fund resource center.
No. TEFA (Texas Education Freedom Accounts) is a Texas state program. The EFTC (Education Freedom Tax Credit) is a federal tax credit for donors who give to a Scholarship Granting Organization, which then funds a student's scholarship. They share similar names but are entirely separate school choice offerings.
TEFA stands for Texas Education Freedom Accounts, a state education savings account program created by the Texas Legislature in 2025 and funded with a $1 billion state appropriation. It provides eligible Texas families with funds for a variety of approved education expenses, including private school tuition, tutoring and curriculum.
The EFTC is a federal tax credit, not a direct payment to families. Donors who give to a qualified Scholarship Granting Organization and that gift earns the donor a dollar-for-dollar federal tax credit: up to $1,700 for individuals, or up to $3,400 for married couples filing jointly.
Yes, potentially. The two are independent, so having a TEFA account doesn't disqualify a student from also benefiting from an EFTC-funded scholarship, and not receiving a TEFA award doesn't affect EFTC eligibility.
TEFA is already underway for the 2026-27 school year, with funding reaching families since July 2026. The EFTC hasn't launched yet: donations open January 1, 2027, and donors claim their credit the following year when they file.
