Using TEFA for a Child With an IEP or Therapy Needs: A Texas Playbook

If you're raising a child with a disability, you already know the drill. Therapy bills. Waitlists. Evaluations. More paperwork than a tax audit. So when a program like Texas Education Freedom Accounts comes along, you've got one question: can this actually help my kid? For a lot of families, the honest answer is yes. But you have to work it right.

You Get Priority. Use It.

Start with the lottery. If applications exceed funding, a lottery decides who gets in. For the 2026–27 school year, the very first priority tier was children with a disability in households at or below 500% of the federal poverty level. That's the front of the line.

Now, 2026–27 applications are closed. The 2027–28 interest list is open. If your child has a disability and you're not in the program yet, get on that list. Priority rules are set by the state and can change, so check the official site for the 2027–28 order. But don't sit this one out.

The Money: Know What You're Actually Eligible For

Here's where families get confused. For 2026–27, the program lists awards of up to

0,474 for private school, and up to $30,000 for students with a current IEP. Most IEP students receive less than that $30,000 ceiling.

How those award categories apply to a homeschooled child with an IEP is exactly the kind of question you confirm with the program directly. Don't guess. Don't take a parent forum's word for it. Check the official site and get it straight before you make plans around a dollar figure.

A McAllen Mom Makes It Work

Meet Elena in McAllen. Her son Mateo is 9. He has a current IEP from his time in public school, plus speech and fine-motor challenges. Elena pulled him out to homeschool because she wanted a pace that fit him. His TEFA account was funded for 2026–27.

(A composite example — names and details are illustrative, drawn from situations homeschool families commonly describe.)

Elena sat down with Mateo's therapy picture first. His speech therapy was already covered through Medicaid. That matters. TEFA's approved expenses include educational therapies not covered by government benefits such as Medicaid. So she didn't try to run his covered speech sessions through the account. Instead, she aimed the money at what wasn't covered: occupational therapy support for handwriting, and reading materials designed for kids who learn the way Mateo does.

She also used part of the account on an academic assessment. Assessment costs are an approved expense, and she wanted a clear baseline, not a hunch. And she set some money aside. Funds left at year-end roll over as long as Mateo stays in TEFA.

The Rules That Trip Families Up

No double-dipping. If a therapy is covered by government benefits like Medicaid, don't try to pay for it with TEFA. The approved-expense language is specific.

No paying family. Maybe you're a licensed therapist yourself. Maybe your sister is. Doesn't matter. TEFA funds may not be used to pay a family member.

Tech has a ceiling. Assistive apps and devices are tempting. But computer hardware or software can't exceed 10% of the amount transferred to the account that year.

School switches have consequences. A child stays eligible until enrolling in a Texas public or charter school. Leave for public school, and your family drops to a lower priority tier the next year. If you're weighing a return to public school for services, factor that in.

Audits are real. The Comptroller must contract a private entity to audit accounts and eligibility at least annually. Keep every receipt and every therapy invoice.

Your Bottom Line

TEFA won't solve everything for a child with special needs. But it can fill real gaps, if you're disciplined.

• Get on the 2027–28 interest list if you're not already in the program.
• Confirm with the program how award amounts apply to your child before you budget.
• Map which therapies are already covered by Medicaid or other benefits, and aim TEFA at the gaps.
• Budget an academic assessment for a clear baseline.
• Keep assistive tech within the 10% cap.
• Keep organized records of every purchase and invoice.
• Find therapists and tutors on our vendor directory, and read our Texas Education Freedom Accounts guide for official links.

Your child's needs are specific. Your spending should be too.

My Learning Source is an independent marketplace and is not affiliated with the Texas Comptroller of Public Accounts, Texas Education Freedom Accounts or Odyssey. Program rules and amounts are set by the state and can change every year — confirm details on the official program site before making financial decisions. Family examples are composites, not real individuals.