AUSTIN, Texas — Texas public schools could lose an estimated $300 million in state funding this school year as students leave public districts for private schools or homeschooling through the state’s new voucher program, according to a report from two nonpartisan groups that oppose vouchers.
The report from Our Schools Our Democracy and Every Texan found that at least 184 independent school districts could lose a combined $227 million in state funding because students accepted vouchers. Another 549 districts could lose an estimated $67 million.
The groups based their estimates on the state’s enrollment-based school funding system, which provides districts with roughly $8,000 in state funding for each student. Texas Comptroller data shows that 30% of voucher recipients previously attended public schools.
Gov. Greg Abbott pushed back against concerns in 2022 that vouchers would reduce funding for public schools.
“If you like the public school your child is attending, it will still be fully funded,” Abbott said at the time.
Abbott later made school vouchers a major issue during the 2024 Republican state legislative primaries, supporting candidates who backed the program.
The Texas Education Freedom Accounts (TEFA) program became law in 2025 and issued its first vouchers for the 2026-27 school year. More than 200,000 students applied, exceeding the program’s initial $1 billion funding capacity. The state awarded more than 120,000 vouchers, leaving about 100,000 applicants on a waiting list.
The Texas Comptroller’s Office, which oversees TEFA, has asked lawmakers to consider increasing the program’s funding to $2 billion. The office did not respond to a request for comment.
Houston ISD reported 1,207 students who accepted vouchers and left the district. The Greater Houston area also recorded the most voucher applications statewide.
Other large districts reported significant student losses. Dallas ISD lost 807 students, San Antonio ISD lost 450, Austin ISD lost 301 and Fort Worth ISD lost 576 students through the voucher program.
Dee Carney, executive director of Our Schools Our Democracy, urged lawmakers in September not to increase voucher funding until they have more information about its effects on public schools.
“Voucher supporters promised that public schools would not be harmed by the voucher program because it comes from a different pot of money,” Carney said. “But vouchers have a public school price tag. There is an impact on public schools whenever the child leaves and the revenue with them.”
More than 700 school districts reported at least one student leaving public schools through the voucher program, according to the report.
The groups said smaller and rural districts could face greater challenges because they cannot quickly reduce expenses when enrollment falls. Carney said districts still must pay fixed costs such as transportation, utilities, insurance and teacher salaries even when students leave.
“A public school district can’t reduce expenses dollar for dollar when a student leaves with a voucher because many of those costs, such as transportation, utilities, insurance, teachers – those are fixed costs,” Carney said.
Carney said districts could face difficult decisions if funding losses continue, including reductions in teachers, programs, extracurricular activities and student services, as well as potential school closures.