Priority bills of the 89th Legislature: Vouchers and virtual schools

Date Posted: 7/15/2025
The 89th Legislature adjourned sine die June 2 after passing many bills related to public education. In this multi-part series, ATPE is recapping these bills by first taking a look at major legislation relating to our four legislative priorities for the 2025 regular session.
PART I: Public Education Funding, Educator Compensation, and the Teacher PipelinePART II: School Working Conditions
PART III: Vouchers & Virtual Schools
- SB 2 (Relates to ATPE’s Priority to Protect the State’s Educational Safety Net)
- SB 569 (Relates to ATPE’s Priority to Protect the State’s Educational Safety Net)
Coming soon:
PART IV: Parental RightsPART V: Legal & Liability Bills
PART VI: Testing & Accountability
We’ll share information about other public education legislation not considered high-priority bills in a subsequent post.
Each bill includes ATPE’s position on the legislation, along with links to related ATPE Legislative Program categories and positions.
PART III: Vouchers & Virtual Schools
Related ATPE Legislative Priorities for 2025:
-
Protect the State’s Educational Safety Net
ATPE urges the Legislature to consider the substantial pitfalls of creating a taxpayer-funded entitlement for private schools, including the experiences of other states where vouchers have proven to be costly and, in some cases, budget-busting programs unpopular with voters. A Texas voucher entitlement could easily amount to over $7 billion annually. Any voucher should be considered as standalone legislation and not be tied to public school funding or teacher compensation. The Legislature should prioritize funding for traditional school districts, the state’s educational safety net, now and into the future, over private educational pathways.
Major Bills:
SB 2 by Sen. Brandon Creighton (R–Conroe) | et al. – Private School Vouchers
Status: Signed into law
SB 2 was filed as the Senate’s priority voucher proposal by Sen. Brandon Creighton (R–Conroe). This was Gov. Greg Abbott’s top priority this session after actively working to pass a voucher program over the past three years.
SB 2’s Education Savings Account (ESA) voucher program provides voucher amounts equal to 85% of the estimated statewide average of state and local funding per student, based on the most recent data available, which is anticipated to be between $10,000 and $11,000 in the first year of implementation. Students with disabilities may receive additional funding (up to a maximum of $30,000 per year). Homeschooled students or students attending unaccredited private schools are eligible for up to $2,000 annually.
To participate in the ESA voucher program, a child must be a U.S. citizen or lawful resident, be eligible to attend a public school in Texas or enroll in a pre-K program, and provide proof of Texas residency.
When demand for the program exceeds available spots, applications will be prioritized. First, siblings of participating students will be given priority, followed by other first-time applicants, and then students who previously exited the program to return to public school. Within each of these groups, additional prioritization will be given in the following order: children with disabilities from households at or below 500% of the federal poverty level (FPL); non-disabled children from households at or below 200% FPL; non-disabled children from households between 201% and 500% FPL; and finally, children from households above 500% FPL.
Educational Assistance Organizations (EAOs), certified by the Texas Comptroller, will administer the new voucher program. Their duties will include application intake, eligibility verification, payment processing, and support services. The comptroller may deduct up to 3% of the total funds to cover the agency’s administrative costs and allocate up to an additional 5% of the program funds to certified EAOs for their services. (Eight percent of the initial appropriation totals $80 million in administrative costs.)
Approved ESA expenses include private school tuition and fees, online courses, higher education programs, instructional materials, uniforms, tutoring, standardized assessments, transportation, educational therapies, technology (capped at 10% of the annual allotment), and school-provided meals. However, funds cannot be used for payments to family members, cash withdrawals, direct reimbursements to parents, or items not approved under program guidelines.
Under SB 2, participating private schools must be accredited by the Texas Education Agency (TEA) or a member of the Texas Private School Accreditation Commission, which is a group made up of private school accreditation entities. Non-accredited providers, such as licensed tutors or therapists, must meet specific credentialing and background check standards. Parents of homeschooled students may use ESA funds for eligible services, subject to the $2,000 annual cap.
The program’s funding in its first year (2026-27) is capped at $1 billion statewide. Future funding will be determined by legislative appropriations and guided by a biennial report from the comptroller that assesses anticipated needs. Additionally, the comptroller must publish an annual report detailing application trends, participant satisfaction, student outcomes, and cost-effectiveness.
The SB 2 voucher program will take effect for the 2026-27 school year. The comptroller must adopt implementation rules by May 15, 2026, and begin program promotion and application support efforts in advance of the first enrollment cycle.
SB 2 was prioritized over Buckley’s HB 3 in order to speed passage through the two chambers.
ATPE opposed the bill. Read our written testimony here.
Related positions in the ATPE Legislative Program:
School funding:
SB 569 by Sen. Paul Bettencourt (R–Houston) | et al. – Virtual Schools
Status: Signed into law
SB 569 replaces the Texas Virtual School Network and dramatically expands full-time virtual education.
The bill ensures that school districts cannot require virtual enrollment or compel in-person teachers to teach virtual classes without proper training or consent.
It allows students to enroll in up to three virtual Advanced Placement (AP) or dual-credit courses and provides opportunities to earn an associate degree while still in high school.
Additionally, it authorizes the Texas Education Agency to waive certain attendance requirements during emergencies and ensures schools will still receive funding in those circumstances.
With regard to full-time virtual programs, SB 569 allows Texas public school students to enroll in programs located anywhere in the state, including programs that do not provide access to a physical campus for the purposes of tutoring, testing, and receiving services such as special education. The bill allows full-time programs to operate as synchronous, fully asynchronous, or hybrid programs. SB 569 allows for third-party vendors to be banned from providing full-time virtual services but gives the commissioner of education unilateral authority to make those determinations without any clear statutory guidance.
ATPE submitted written testimony opposing the bill.
Related positions in the ATPE Legislative Program:
School funding:
School accountability, governance, and regulation:
Workplace Issues:
CONVERSATION
RECOMMENDED FOR YOU

07/15/2025
Priority bills of the 89th Legislature: Parental rights
In this Teach the Vote series, we showcase major education bills of the 89th Legislature. Today’s focus: parental rights.

07/15/2025
Congress expands use of 529 savings plans under the ‘One Big Beautiful Bill’
The new law doubles an existing tax shelter for K-12 private school costs but also lets educators use tax-free savings for certification-related expenses.

07/14/2025
Priority bills of the 89th Legislature: School working conditions
In this Teach the Vote series, we showcase major education bills of the 89th Legislature. Today’s focus: school working conditions.