Texas Passes Nation’s Largest Universal Education Savings Account Program Into Law

Texas has passed Senate Bill 2, which establishes the largest Universal Education Savings Account (ESA) program in the country.

The Texas Senate voted 19-12 to accept House revisions to Senate Bill 2, clearing the way for Republican Texas Gov. Greg Abbott to sign into law the largest universal ESA program in the country. The $1 billion program would allow taxpayer funds to support private school tuition and homeschooling expenses, marking the culmination of a years-long push by Republican leadership to overhaul the state’s education system.

“Texas has delivered a resounding victory for students, families, and the American principle of self-determination,” said American Legislative Exchange Council (ALEC) CEO Lisa B. Nelson. “SB 2 not only represents sound policy but highlights the simple yet powerful belief that money should follow the child rather than be trapped in the system. Governor Abbott and the Texas Legislature demonstrated a tremendous amount of courage leading this charge, and history will remember.”

SB 2 marks Texas as the 16th state to implement a universal ESA, part of a growing movement among states to expand parental control over education.

DALLAS, TEXAS – MAY 18: Texas Gov. Greg Abbott speaks during the NRA ILA Leadership Forum at the National Rifle Association (NRA) Annual Meeting & Exhibits at the Kay Bailey Hutchison Convention Center on May 18, 2024 in Dallas, Texas. (Photo by Justin Sullivan/Getty Images)

“Model policies like the Hope Scholarship Act provided the framework for education freedom reforms like SB 2,” said Nelson. “It signals the end of the one-size-fits-all era in American education.” (RELATED: Texas Gov. Greg Abbott Blocks Construction Of Proposed Muslim ‘City’)

Abbott signed a package of parental rights bills in 2023 that state officials said gave parents more authority over classroom materials, school library content, special education support and grade-level decisions.

The ESA bill’s passage was far from smooth. After failing to gain traction in multiple sessions, Abbott waged an aggressive campaign, including funding primary challengers against Republicans who opposed school choice. Eleven incumbents lost their seats.

MILWAUKEE, WISCONSIN – JULY 17: Texas Gov. Greg Abbott speaks on stage on the third day of the Republican National Convention at the Fiserv Forum on July 17, 2024 in Milwaukee, Wisconsin. (Photo by Alex Wong/Getty Images)

Abbott declared school choice an “emergency item” in his State of the State address in 2023, a move that allowed lawmakers to prioritize ESA legislation. He called the issue “vital to the future of our state” and said the goal was to give Texas parents “educational freedom.”

Texas’ new universal ESA program builds on Abbott’s earlier efforts to give parents more control over their children’s education. The program expands on the 2020 Supplementary Special Education Services initiative, which provided targeted funds to families of special needs students.

Abbott had long called for expanding that model to all families, a goal realized with the passage of Senate Bill 2. Despite strong opposition from Texas House Democrats, the $1 billion ESA program is now set to become law.

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