More than 5,100 families in Katy ISD and nearly 3,900 in Lamar CISD applied for the state's new school-choice voucher program for the 2026-27 school year, placing Katy ISD eighth statewide in applications and raising fresh questions about how the program will affect local public school funding.
The Texas Education Freedom Accounts program, created by state lawmakers in 2025, gives accepted students up to $10,474 for private school tuition, $2,000 for homeschooling expenses or up to $30,000 for students with disabilities. More than 60 approved private schools in the Katy and Fulshear area can now accept TEFA funds, Community Impact reported Aug. 19.
Katy ISD officials declined to comment. Lamar CISD officials said only a "minimal number of students" who applied actually withdrew to attend private schools.
Who's applying
Statewide, about 274,000 students applied and roughly 122,000 were accepted, though the number who confirmed participation and received funding is lower. Priority goes to students with disabilities from low- and middle-income households, followed by children from low-income families. About 80% of funded students come from households earning less than 200% of the federal poverty level.
As of June 10, state data showed 43% of selected students had attended a public school in 2024-25, while 57% were already in private school or homeschooled.
The funding question
Texas public schools are funded based on daily attendance, not enrollment. The Texas Association of School Boards estimates districts lose $45 in state funding for each student absence per day, meaning students who leave permanently represent a compounding revenue loss.
"When you put in policies like the [TEFA] program, that would pull public school dollars away from the public school system, you are not only reducing the educational opportunity that those dollars could fund for students, but also you could be creating unemployment issues for parents and families in those smaller regions," said Toni Templeton, a research scientist at the University of Houston Education Research Center.
Templeton said the program's long-term effects remain unknown given its infancy.
Districts respond with new programs
Both districts are rolling out options to retain and attract students. Katy ISD is launching Legacy Virtual High School this fall, offering full-time and part-time virtual learning for ninth- through 11th-graders across Texas. The district also opened a High School Limited Open Enrollment program, allowing eligible students from neighboring counties to transfer in.
Superintendent Ken Gregorski said in a July 15 press release that the open enrollment program extends the district's academic offerings to families beyond its boundaries, calling Katy ISD "one of the most sought-after school districts in Texas."
Lamar CISD opened Bright Futures Academy for the 2026-27 school year, an in-district charter school for students ages 3 through second grade with autism spectrum disorder. A ribbon-cutting was held Aug. 7 at the former Beasley Elementary site. The academy serves up to 95 students with 10 teachers and 21 paraprofessionals, and the district plans to add one grade level per year through fifth grade. Enrollment of students with autism in Lamar CISD has risen 334% over the past decade, according to Texas Education Agency data.
Lamar CISD is also opening a new career and technical education center and continuing its Innovative Learning program, which brings outside experts onto campuses.
What's next
The current state budget includes $1 billion in TEFA funding. The nonpartisan Texas Legislative Budget Board has projected demand could push the program to $3.3 billion by 2028 and $4.8 billion by 2030. Some state lawmakers have signaled they want to expand funding during the 2027 legislative session, which begins in January.
