What TEFA Money Can and Can't Buy: Tech Caps, Family Rules and Rollover
By My Learning Source · October 7, 2026 · Scholarships, Guides, Curriculum
Free money? Not quite. Texas Education Freedom Accounts are real dollars with real rules. For the 2026–27 school year, a homeschool student can get up to
,000. Spend it right and it goes a long way. Spend it wrong and you've got a problem. So let's lay the rules on the table, plain and simple.
The Yes List
The state keeps an official list of approved expenses. Here's what's on it: tuition and fees at a private school, a higher-education provider, an online educational course or program, or a TEA-approved industry-credential program. Textbooks and other instructional materials. Required uniforms. Fees for public-school-district classes that don't count the child in attendance. Academic assessment costs. Private tutoring. Transportation to and from approved providers. Educational therapies not covered by government benefits such as Medicaid. Computer hardware or software, within a cap. And meals provided by a private school.
For most homeschoolers, the heavy hitters are instructional materials, online courses, tutoring and assessments. But don't skip past two items. Got a high schooler? A TEA-approved industry-credential program or a higher-education course could be a smart use of the money. Got a kid who wants one class the local district offers? Fees for district classes that don't count your child in attendance are on the list too.
The Hard Limits
Meet Marcus in Tyler. He homeschools his 14-year-old daughter, Ava, and her account was funded with
,000 for 2026–27. Marcus had two ideas right out of the gate. First, a new laptop, since the family computer was on its last legs. Second, paying his sister, a former classroom teacher, to tutor Ava in algebra twice a week.
(A composite example — names and details are illustrative, drawn from situations homeschool families commonly describe.)
Both ideas hit a wall. Here's why.
The tech cap. Computer hardware or software can't exceed 10% of the amount transferred to the account that year. On a ,000 award for 2026–27, that's 00. A decent laptop costs a whole lot more than that. Marcus kept the old computer running and used a slice of the tech allowance on math software instead.
No family members. TEFA funds may not be used to pay a family member. Doesn't matter how qualified your sister is. Doesn't matter if she'd charge less than anyone in town. The answer is no. Marcus's sister still helps Ava for free on Sunday afternoons. For paid tutoring, he found an outside algebra tutor instead.
Is that frustrating? Sure. Does it make sense? Think about it. It's taxpayer money. A rule that keeps it from flowing back into your own household isn't unreasonable. You just have to plan around it.
Rollover: The Rule That Rewards Patience
Here's the part too many families miss. Money left in the account at the end of the year rolls over, as long as the child stays in TEFA. That changes the whole game. You don't have to spend every dollar by summer. You don't have to panic-buy in June.
Marcus did the math. The tutor and the math materials took most of Ava's award. He left the remainder alone. If Ava wants to take an online course next year, that cushion is sitting there.
One warning. The rollover is tied to your child staying in the program. And a child stays eligible until they enroll in a Texas public or charter school. If you're thinking about switching schools, check the official site first so you know what's at stake.
The Bottom Line
TEFA money can buy a lot of what homeschool families actually use. It can't buy a pricey new computer, and it can't pay Aunt Linda. Know the list, respect the limits, and treat rollover as a savings account for your child's education.
Read the official approved-expense list before your first purchase.
Cap hardware and software at 10% of the year's transfer — 00 on a ,000 award for 2026–27.
Line up tutors and teachers from outside your family.
Don't rush to spend it all; year-end money rolls over while your child stays in TEFA.
Look at district classes and industry-credential programs if you have an older student.
Rules aren't the enemy. Surprises are. Learn the rules now and you won't get any.
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.
