As debate over school choice dominated the Texas Capitol, one provision quietly made its way into the law.
Parents with pre-K students are eligible to receive funds in the new education savings account program, marking an expansion of publicly funded early education. The public funds would be used to pay for pre-K tuition at private or community-based child care centers, if they qualify under Senate Bill 2.
Parents of eligible 3- and 4-year-olds could receive over $10,000 annually to pay for tuition, textbooks and related costs at approved private providers.
In Fort Worth, the funds could go a long way, according to Child Care Associates, Tarrant County’s largest early childhood provider.
Public school districts could benefit, too, according to the Texas Public Policy Foundation.
But with the rollout still in the hands of the Texas Comptroller’s office, providers are watching closely and waiting on key details — including how eligibility will be verified, how payments will work and whether the new funding can be used alongside existing child care assistance.
“We naturally are appreciative of the important inclusion of high-quality child care providers,” said Catherine Davis, Child Care Associates’ policy director. “It’s a win-win-win (for families, for the programs and for sustainability).”
Pre-K eligibility tied to existing state standards
Under the new law, students who are eligible for Texas public pre-K are also eligible to receive education savings account funds, including children from low-income households, military families, foster care and children learning English.
The law does not create universal access for all preschool-aged children; eligibility remains tied to existing state criteria for pre-K programs.
That’s intentional, said Jorge Borrego, K-12 education policy director at the Texas Public Policy Foundation.
“We want to make sure not just the affluent but all Texans — including low-income families, students with disabilities and children of first responders — can access the setting that’s best for their children,” he said.
Borrego emphasized that many of those families fall into the law’s highest-priority categories and would be among the first to receive education savings account funding.
In Tarrant County, the average cost of infant care is nearly $9,000 per year, according to Child Care Associates — meaning a $10,000 education savings account could cover most or all of a family’s annual tuition, depending on the provider.
Child Care Associates called the expansion a win for child care and for families, especially because early versions of the education savings account bill in 2023 left out community-based providers.
Now that they’re included, providers must still meet new state requirements to participate, including accreditation, background checks and financial compliance.
Concerns emerge about religious instruction, oversight
Not everyone sees the expansion as a win.
Raise Your Hand Texas, a nonprofit advocacy group focused on public education, pointed to broader funding gaps across the state’s public school system.
“Texas is currently ranked 46th in the nation in per-pupil funding,” the organization said in a statement. “During the 89th legislative session, the state Legislature’s down payment of $8.5 billion in school funding did not close the gap. Texas has the opportunity to fully fund our schools and do more for our public education students, not just those seeking an ESA.”
The organization also urged lawmakers to strengthen public pre-K access.
“We can do more to expand public school pre-K eligibility, including expanding access for special education students,” the group said.
Still, Child Care Associates sees the law as a step forward, but not a finish line.
“There are still a lot of questions,” Davis said.
Education savings account payments will be quarterly, but child care providers operate on much tighter budgets, according to the organization. Many rely on weekly payments from the Texas Workforce Commission, creating a planning challenge.
Davis also pointed to a bigger-picture opportunity: aligning Texas’ various early education programs — education savings accounts, pre-K partnerships, child care scholarships and Head Start — into a more unified system.
“Now that enabling legislation has passed, Texas has a great opportunity to step back and simplify eligibility, funding and parent access,” Davis said.
Districts, providers prepare for a 2026 launch
While most school choice discussions focus on private providers, Borrego noted that public school districts offering pre-K can also receive education savings account funding — even from students outside their boundaries.
Districts struggling with enrollment or budgets may be able to enroll education savings account students and benefit from that funding, Borrego said.
“It’s an opportunity they may want to take up as soon as possible,” he said.
Still, the program’s first year is capped at $1 billion in spending and 100,000 total participants statewide, which Borrego said likely won’t meet the full demand from families.
The law takes effect Sept. 1.
The comptroller’s office must adopt rules by May 2026 to prepare for the 2026-27 school year. Until then, providers said they’ll prepare by educating families and monitoring the rulemaking process.
“Success looks like eligible families finding the setting that works for them,” Borrego said. “They are situated where they can grow, where they can gel with a community and where they can thrive.”
Child Care Associates agrees, Davis said, but cautioned that the state must do more than pass a bill.
“Texas has made important advances this session,” Davis said. “But the real work is still ahead.”
Matthew Sgroi is an education reporter for the Fort Worth Report. Contact him at matthew.sgroi@fortworthreport.org or @matthewsgroi1.
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