Holy Family Catholic School in North Austin will be participating the state's school voucher program this year. COURTESY OF DIOCESE OF AUSTIN
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Thousands of Austinites are vying for a share of the $1 billion in Texas education vouchers, but as demand outpaces funding and questions mount over who will benefit, some of the city’s priciest private schools are opting out entirely.

This spring marks the first deadline for the Texas Education Freedom Accounts program, created under a 2025 state law allowing public funds to pay for private or home-schooling costs. But the program faces intensifying criticism and legal scrutiny. Critics say state dollars will primarily offset tuition costs for already-enrolled private school students, a claim backed by early data obtained by the Texas Center for Voucher Transparency that shows nearly three-fourths of applicants already attend private schools. The application process has already seen legal pushback from a group of Muslim-led schools that sued the state over discrimination claims. And, in Austin, some private schools have chosen not to accept vouchers, arguing existing in-house financial aid programs better serve students and community.

According to data provided by the Texas Comptroller’s Office, more than 200,000 people have applied for school vouchers as of March 17, far exceeding available funding and raising questions about how many will ultimately receive aid. In the Austin education service region, the number of applicants tops 18,000. Under the initiative, homeschooled students can receive $2,000 and private school applicants can receive $10,000 to $30,000, depending on the students’ learning needs. Despite the controversy and court challenges, the rush of applicants is quickly outpacing the program’s funding, complicating rollout further as the state prepares to sort applicants based on a financial and educational need that place each applicant in one of four priority tiers.

Elite schools balk as vouchers draw demand

About 200 private school programs in the Austin area have signed up to participate in the state’s voucher initiative, but some of Austin’s most elite private schools are declining to participate and focusing on existing financial aid programs instead.

Prestigious Episcopal private schools St. Andrew’s and St. Stephen’s, where tuition can cost upwards of $30,000 a year for non-boarding students, are choosing not to accept vouchers. The same is true for Trinity Episcopal School and the Girls’ School of Austin, where tuition is more than $19,000.

St. Stephen’s, which serves middle and high school students, said in a statement it is committed to accessibility, affordability and socio-economic diversity and has “long supported these values through a robust, self-funded financial assistance program.”

During the 2024–25 academic year, more than 20% of students received need-based financial aid, the statement said. The school also offers affordability workshops, financial aid guidance and payment plan options. The school’s leadership will monitor the state’s voucher program and “will provide timely updates should the school’s position change.”

A public statement from St. Andrew’s said the school’s board and administration have extensively researched the Education Freedom Accounts and decided not to accept the funds. The school, which serves K-12 students, also said it “is committed to providing a robust financial aid program to ensure that an SAS education is available to as many qualified students as possible.”

Trinity Episcopal also pointed to a statement on its website, which said that “guided by our mission and what’s best for students,” the school had decided not to participate in the voucher program at this time and was committed to supporting families through its own financial assistance program.

The Girls’ School of Austin said in a statement the school would continue to focus on its own needs-based tuition assistance program and prioritize preserving independent governance, curricular autonomy and mission-driven decision-making in line with guidance from the National Association of Independent Schools. The statement further explained the school chose not to participate “because doing so may not align with our mission, independence, and long-term sustainability.”

A state-funded boost for some

However, some participating schools view the new program as a major opportunity. All of the Diocese of Austin’s more than a dozen schools have opted into the program, which Superintendent Misty Poe said could cover most or all of tuition costs for most diocese schools.

Though she said the state’s program appears to be more familiar to families already participating in private education, many families are learning about the vouchers and seeing them as an opportunity to enroll their students in a private school. Diocese schools have sent newsletters about the program to an estimated 15,000 people who signed up for updates and held information clinics where attendance has reached up to 50 people in person and up to 1,000 online.

Private school student vouchers would fully subsidize the $9,000 average cost of attendance for diocese elementary and middle schools and nearly cover the average high school cost of $15,000. Families who receive a voucher payment can still receive financial aid through the school. Though the state program remains untested, it’s a gamble she’s willing to make to expand access for families.

“It’s really empowering and equipping those parents with the resources they need to help their child succeed in whatever environment they choose,” Poe said. “This is an exciting time, more so for parents giving them the resources to make decisions they feel (are) best for their child.”

Acacia Coronado is Austin Current's education reporter. She is a Texas native and has previously written for The Associated Press, The Texas Tribune and The Wall Street Journal, among others.