What Is TEFA? How Texas Families Can Use Education Freedom Funds for Speech Therapy

If your child has a speech IEP and you've applied for a Texas Education Freedom Account (TEFA), you may be able to use those funds for private speech therapy starting July 1, 2026 — including services at CloudSpeech Online Therapy.

Here's what you need to know.

What Is the TEFA Program?

The Texas Education Freedom Accounts (TEFA) program was created by the Texas Legislature in 2025 under Senate Bill 2 and is administered by the Texas Comptroller of Public Accounts.

TEFA provides eligible Texas families with a state-funded education savings account that can be used for approved educational expenses — including private school tuition, tutoring, educational materials, and therapies for students with disabilities.

The program launches for the 2026-27 school year, with funds becoming available starting July 1, 2026.

Source: Texas Education Freedom Accounts — Official Program Website

How Much Funding Do Families Receive?

Funding amounts depend on your child's situation:

  • Standard private school students: $10,474 for the 2026-27 school year
  • Students with a disability and an IEP on file with TEA: Up to $30,000/year — the exact amount is based on what your local school district would have spent on your child's IEP services in public school
  • Homeschool students: $2,000/year

For families of children with speech IEPs, the higher funding tier means private speech therapy is genuinely within reach.

Important: The $30,000 tier requires a valid IEP on file with the Texas Education Agency (TEA). Income does not disqualify families from TEFA — income affects priority in the funding lottery only, not eligibility. To qualify for the top priority tier, a family's household income must be at or below $165,000 per year for a family of four — or $79,800 for a single parent household. Most Texas families qualify.

Sources: TEFA Program Overview — educationfreedom.texas.gov TEFA Parent Application Guide (PDF) Texas Catholic Conference TEFA Guide

What Can TEFA Funds Be Used For?

According to the official TEFA program guidelines, approved expenses include:

  • Private school tuition at participating schools
  • Tutoring and online education programs
  • Therapies and special services for students with disabilities — including speech therapy
  • Textbooks and instructional materials
  • Transportation to approved providers
  • Computer hardware and software (up to 10% of annual amount)

Speech therapy services from an approved TEFA vendor fall under the therapies category for students with disabilities.

Source: Texas Education Freedom Accounts — Approved Expenses

Who Qualifies for TEFA?

To be eligible for TEFA, a student must:

  • Be a U.S. citizen or lawfully present in the United States
  • Be eligible to attend a Texas public school
  • Not be enrolled full-time in a public or charter school while receiving TEFA funds

The parent or guardian must be a Texas resident.

Priority order for funding (when applications exceed available funding):

  1. Students with a disability whose household income is at or below $165,000/year (family of four) or $79,800/year (single parent)
  2. Students whose household income is at or below $66,000/year (family of four)
  3. Students whose household income is between $66,000 and $165,000/year (family of four)
  4. All other applicants

Once a family is approved, they do not need to reapply each year. Funds roll over annually as long as the child remains in the program.

Source: Texas Education Freedom Accounts — Official Program Website

What Families with IEPs Need to Know

For children with a speech IEP, TEFA can be a significant funding resource. However, there is one important tradeoff families should understand before enrolling:

When a family accepts TEFA funds, they give up their rights under the Individuals with Disabilities Education Act (IDEA). This means the public school district is no longer required to provide free special education services — including school-based speech therapy — to your child.

For families who are already receiving inadequate school-based speech services, whose child is on a waiting list, or whose child needs more intensive or specialized support than the school can provide, this tradeoff may be well worth it.

But it is an important decision to make with full information.

If you have questions about whether TEFA is the right fit for your child, we are happy to talk it through during a free parent consultation.

Source: Texas Council on Developmental Disabilities — TEFA Guide (PDF)

TEFA Timeline for 2026-27

  • February 4 – March 31, 2026 — Application window (now closed for 2026-27)
  • April 2026 — Award notifications sent to families
  • July 1, 2026 — At least 25% of approved funds available in participant accounts
  • October 1, 2026 — At least an additional 50% available
  • April 1, 2027 — Remaining funds available

Funds not used at the end of the school year roll over as long as your child remains in good standing in the program.

Source: Texas Education Freedom Accounts — Official Program Website

CloudSpeech Is an Approved TEFA Vendor

CloudSpeech Online Therapy has been approved as a TEFA vendor through the Odyssey marketplace — meaning families with approved TEFA accounts will be able to use their funds directly for speech therapy services with us starting July 1, 2026.

We specialize in speech sound disorders for children ages 5 and up across Texas, including:

All sessions are one-on-one, fully virtual, and available after school and on weekends across all of Texas. We are a private-pay practice and provide superbills for out-of-network insurance reimbursement.

More details on how to use your TEFA funds with CloudSpeech will be available as the program finalizes vendor enrollment steps closer to July 1, 2026.

Book a Free Parent Consultation →

Missed the 2026 Application Window?

The application window for the 2026-27 school year closed March 31, 2026. If you did not apply in time, you can prepare for next year's application window by:

  • Ensuring your child's IEP is on file with the Texas Education Agency (TEA)
  • Contacting your local public school district's special education department to confirm your child's IEP is registered in TEA's APEX system
  • Visiting educationfreedom.texas.gov to sign up for program updates

In the meantime, CloudSpeech accepts private pay, HSA/FSA funds, and provides superbills for out-of-network insurance reimbursement — so your child does not have to wait for TEFA to begin therapy.

Book a Free Parent Consultation →

Questions About TEFA and Speech Therapy?

We are here to help. Book a free parent consultation and we will talk through your child's needs, whether CloudSpeech is a good fit, and how TEFA funds can be applied to their care.

Book Your Free Parent Consultation →

For official TEFA program information:

CloudSpeech Online Therapy | CB Speech, PLLC | cloudspeech.com | Christina Burnham, MS CCC-SLP

Resources for ParentsChristina Ann BurnhamCloudSpeech: Online TherapyTEFA, Texas Education Freedom Accounts, speech therapy funding, school choice Texas, IEP, speech therapy Texas, private speech therapy Texas, CloudSpeechComment