Governor signs education savings account bill into law

Gov. Greg Abbott signed into law a bill establishing an education savings account program that allows families to direct public funds to private—often religious—schools.

“I am signing this law that will ensure Texas families, whose children can no longer be served by the public school assigned to them, have the choice to take their money and find the school that is right for them,” Abbott said during a May 3 signing ceremony at the Governor’s Mansion in Austin.

The $1 billion program—Abbott’s top legislative priority—will provide about $10,000 to each participating private school student and up to $2,000 to each participating homeschool student.

It dedicates 80 percent to students with disabilities and—broadly defined—low-income families. The general population, including families with students already enrolled in private schools, can apply for the remaining 20 percent.

Cost of the program considered

The Legislative Budget Board estimates the education savings account program’s cost will grow from $1 billion in 2027 to more than $3.75 billion from general revenue in 2030, plus an additional $805 million from the Foundation School Fund.

The cost to the principles of justice and the separation of church and state are even higher, said Charles Foster Johnson, founding executive director of Pastors for Texas Children.

“An old preacher told me a long time ago that God’s justice was figuring out what belongs to others and giving it to them. Universal education for all children is God’s justice. A $1 billion voucher subsidy program for children already in private schools—mostly religious schools that use Caesar to support their religion—is not,” Johnson said.

The same day Abbott signed the education savings account bill, Johnson noted signs of strong voter support for public education in local elections throughout Texas. Voters approved public school bond proposals and elected school board trustees supportive of public schools, he said.

House joined Senate in backing the bill

Lt. Gov. Dan Patrick—a longtime proponent of school vouchers—called the enactment of the educational savings account program “one of the hallmark policy victories of my career.”

“The Texas Senate and I have passed school choice six times since 2015, because we firmly believe in this principle,” Patrick said.

In previous legislative sessions, a coalition of rural Republicans and urban Democrats defeated each of the Senate-backed school voucher bills.

Jeff Yass, cofounder and managing director of the Philadelphia-based Susquehanna International Group and supporter of “school choice,” made the largest single campaign donation in Texas history to Abbott.

Abbott subsequently supported the primary opponents of rural Republicans who defeated a voucher-style bill in the 2023 legislative session, changing the makeup of the Texas House.

“This session, the Texas Legislature worked together to deliver what parents have long been asking for—more opportunities for our students to reach their full potential,” House Speaker Dustin Burrows said.

“School choice, paired with the House’s additional proposal to initiate the largest increase in public education funding in Texas history, will elevate the overall quality of our educational system and make a generational impact on our state.”

Step still missing

The Texas House approved a public education funding bill increasing the basic allotment per public school from $6,160 to $6,555, with 40 percent earmarked for school staff salaries. The bill includes close to $2 billion in special education funding and $750 million to increase teacher pay.

Burrows touted House passage of the education savings account bill and its school funding legislation as the “Texas two-step.”

“While the voucher bill was signed into law by Gov. Abbott this weekend, the school funding bill has yet to be scheduled for a hearing in the Senate,” said John Litzler, public policy director for Texas Baptists’ Christian Life Commission.

“Proponents of school vouchers often state that Texas can fully fund both public education and a voucher program. But the second step of the legislative plan for improving educational outcomes is already lagging behind.

“The Christian Life Commission urges the Texas Senate to pass HB2 and cultivate the flourishing of the 5.5 million public school children in Texas.”