The bill establishes an Education Savings Account (ESA) program in Texas, aimed at providing families with enhanced educational options and promoting knowledge dissemination. It introduces a new subchapter in the Education Code, defining key terms such as "Account," "Certified educational assistance organization," and "Participating child." The comptroller is responsible for implementing the program, which will fund approved education-related expenses for eligible children. The bill outlines the application process, funding limits, and a cap of $1 billion for the 2025-2027 biennium, along with specific allocation rules for the 2026-2027 school year. It also emphasizes cybersecurity and communication between certified educational assistance organizations and parents.

Additionally, the bill mandates the comptroller to set deadlines for application submissions and outlines a lottery system for filling positions when demand exceeds available funding. It establishes a priority system for applicants, including siblings of participants and children with disabilities from low-income households. The bill also details the responsibilities of education service providers, including compliance with disbursement schedules and reporting requirements. It prohibits the use of funds for payments to relatives and ensures that remaining funds carry over to the next fiscal year. Furthermore, the bill amends existing laws regarding enrollment and funding, enhances accountability and transparency, and allows for emergency rule adoption by the comptroller. The implementation of these provisions is set to begin with the 2026-2027 school year.

Statutes affected:
Introduced: Education Code 22.092, Government Code 411.109, Health and Safety Code 810.002 (Education Code 22, Health and Safety Code 810, Government Code 411)
Senate Committee Report: Education Code 22.092, Government Code 411.109, Health and Safety Code 810.002 (Education Code 22, Health and Safety Code 810, Government Code 411)
Engrossed: Education Code 22.092, Government Code 411.109, Health and Safety Code 810.002 (Education Code 22, Health and Safety Code 810, Government Code 411)
House Committee Report: Education Code 22.092, Government Code 411.109, Health and Safety Code 810.002 (Education Code 22, Health and Safety Code 810, Government Code 411)