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The Texas House has introduced House Bill 3 (HB 3), its version of a school choice and Education Savings Account (ESA) program, following the Texas Senate’s approval of Senate Bill 2 (SB 2). As school choice remains a legislative priority in Texas, HB 3 represents the House’s approach to funding and administering ESAs.
For a broader look at the legislative effort, check out our breakdown of Senate Bill 2 here.
What is HB 3?
HB 3, authored by State Rep. Brad Buckley (R-Salado), the chairman of the House Committee on Public Education, seeks to give parents more control over their children’s education. The bill allows taxpayer funds to be used for:
- Private school tuition
- Homeschooling resources
- Specialized educational services
Both Texas Governor Greg Abbott (R) and Lt. Gov. Dan Patrick (R) have made school choice a top priority this session.
Texas House’s History With School Choice
Historically, the Texas House has been the biggest obstacle to passing school choice legislation, largely due to opposition from rural lawmakers concerned about local public school funding.
- 2017: A major school choice effort passed the Texas Senate but stalled in the House.
- 2021 & 2023: Similar proposals failed, prompting Governor Abbott to make school choice a central issue in the 2024 Republican Primary by targeting lawmakers who blocked previous efforts.
The Republican divide is evident—urban and suburban legislators generally support ESAs, while rural lawmakers remain skeptical. However, the introduction of HB 3 signals a renewed push, potentially backed by shifting voter priorities and growing grassroots advocacy.
The repeated inability to pass school choice measures in the Texas House reflects an ongoing divide within the Republican Party, with urban and suburban legislators generally more supportive of ESAs, while rural lawmakers remain hesitant due to fears of reduced public school funding. However, the latest push with HB 3 signals a renewed effort, possibly strengthened by shifting voter priorities and increased advocacy for educational freedom.
Texans Support School Choice
Polling consistently shows strong support for school choice across Texas. Parents, particularly low-income families, favor expanded educational options to find the best learning environment for their children.
- Key Fact: Support for ESAs spans party lines, showing school choice is an issue beyond politics.
However, opposition remains from teacher unions and public school administrators, who argue that ESAs divert funds from public schools. Advocates counter that competition improves public education by driving innovation and accountability.
Can School Choice Save Texas Billions?
A recent fiscal analysis suggests ESAs could significantly reduce state education costs.
Key Findings:
- ESA-funded alternatives often cost less per student than traditional public schools.
- School choice programs ease overcrowding, allowing public schools to better allocate resources.
Critics argue that ESAs drain funding from struggling schools, but supporters say competition forces public schools to improve.
Understanding HB 3 and Its Purpose
HB 3 proposes the creation of an Education Savings Account (ESA) program in Texas, expanding school choice options for parents. The bill aims to provide families with the flexibility to direct their child’s education by allocating state funds toward private schools, homeschooling, or other educational services. Proponents argue this measure enhances educational opportunities, while opponents express concerns over the impact on public school funding.
The bill emphasizes transparency and accountability in administering ESA funds. The Texas Comptroller will oversee the program, ensuring the proper distribution of funds and compliance with spending requirements. Additional oversight will come from certified educational assistance organizations, which will help process applications and guide participants through the program.
Eligibility and Funding
Eligibility for the ESA program includes students currently enrolled in public schools, prekindergarten programs, and those eligible for public school attendance. Children with disabilities receive priority, with specific funding considerations to meet their educational needs.
Each student’s funding is determined based on a percentage of the statewide average per-pupil expenditure in public schools. Special-needs students may receive additional funding, up to a cap of $30,000 per student annually.
How ESA Funds Can Be Used
Parents will have the flexibility to allocate ESA funds toward a range of education-related expenses. These include private school tuition and fees, online educational courses, textbooks, instructional materials, school uniforms, special education services, and college tuition. Additionally, funds may cover transportation costs and educational therapies, ensuring students have access to diverse learning opportunities.
Oversight, Administration, and Accountability
The Texas Comptroller will manage the program, ensuring compliance with spending guidelines and auditing ESA accounts to prevent fraud. Certified educational assistance organizations will support administration by processing applications and assisting parents in navigating available resources.
To maintain integrity, HB 3 incorporates accountability measures such as annual audits, transparency requirements for participating schools and service providers, and provisions for suspending or revoking accounts in cases of fund misuse. Regular reporting will assess program effectiveness and student outcomes.
Comparison: HB 3 vs. SB 2
While both the Texas House’s HB 3 and the Senate’s SB 2 aim to establish an Education Savings Account program, they differ in several key areas. SB 2 places a stronger emphasis on income-based eligibility, prioritizing “low-income” families, while HB 3 seems to offer a broader eligibility range. Additionally, SB 2 provides higher funding allocations per student, particularly for students with disabilities, whereas HB 3 includes more restrictive caps on funding amounts.
Another key distinction is in oversight and implementation. Under SB 2, the Texas Comptroller has direct control over fund disbursement, whereas HB 3 includes a role for certified educational assistance organizations to help administer the program. Additionally, SB 2 includes stronger promotion and outreach requirements, mandating efforts to ensure parents are informed about the program.
Despite these differences, both bills align in their primary goal of expanding school choice and providing financial support for alternative educational options. The ongoing negotiations between the House and Senate will determine which provisions ultimately shape Texas’ final ESA policy.
Implications for Public Education
Supporters argue that ESAs empower parents by expanding educational choices and fostering competition that could improve public school performance. However, critics warn that diverting funds from public schools could lead to financial instability for school districts and diminish resources available for traditional education. Notably, the appropriations for such efforts in this budget cycle amount to about $1 billion from the budget surplus, as opposed to from existing appropriations for existing public school funding.
Conclusion
Texas House Speaker Dustin Burrows has repeatedly said that the votes exist to pass school choice legislation this session. If true, both HB 3 and SB 2 mark a pivotal moment in Texas’ education policy, emphasizing school choice and parental control over education funding. While the program has the potential to expand access to diverse educational options, its long-term effects on public education funding and the regulations surrounding education generally remain topics of debate.
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