Texas Public Schools Face $227 Million Funding Loss From Voucher Program
By Staff Reports
AUSTIN, Texas – Texas public schools are estimated to lose at least $227 million in state funding this school year because students are leaving for the state’s new voucher program. Two advocacy groups released the estimate on October 1, 2026.
The analysis comes from the Texas Center for Voucher Transparency, part of Our Schools Our Democracy, and from Every Texan. Both groups oppose vouchers. They built the estimate from public information requests and Texas Comptroller data. The Houston Chronicle published the findings first.
What the Estimate Shows
The $227 million figure covers 184 school districts. Those districts each had at least 30 students who were awarded and funded a voucher account as of August 10.
Another 549 districts had fewer than 30 voucher students. The groups estimate those districts will lose an additional $67 million. That brings the statewide total to about $294 million.
In all, 733 Texas districts had at least one student with a funded voucher account. Houston ISD had the most with 1,207 students. The groups project that loss at about $9.9 million.
Why Enrollment Matters
Texas funds public schools largely based on how many students attend class each day. When a student leaves, the district loses state money tied to that child. The groups used a rough figure of $8,000 to $8,200 per student.
The Chronicle reported that at least 28,200 public school students took a voucher. Large urban districts have seen the most students leave. The effect could be felt more sharply in smaller districts, where losing a handful of students can have a dramatic effect on the budget.
Fewer Private Options in Rural Texas
Of the 733 affected districts, 520 enroll fewer than 2,000 students. The Chronicle reported that most of those small districts have no state approved private school within their boundaries.
That suggests many students leaving those districts are homeschooled or attending a virtual private school.
Marathon ISD in far West Texas shows how small some districts are. It educates just 46 students at a single school. A Texas Monthly writer who lives in the area reported only one private high school option within a hundred miles of Marathon.
For many rural families, the local public school is the only school nearby. Families in small towns have fewer chances to use a voucher at a private campus close to home. Rural students also have fewer alternatives if their public school cuts programs.
Fixed Costs Hit Small Districts Hard
Districts cannot cut costs dollar for dollar when students leave. Transportation, utilities, insurance and staffing are fixed or hard to reduce quickly. Small rural districts also cannot spread those costs across thousands of students the way large districts can.
One superintendent told the Chronicle that losing four students can mean losing a teacher’s salary. Dee Carney, director of the Texas Center for Voucher Transparency, said districts may have to cut teachers, programs and student services.
She said they may also have to limit extracurricular opportunities or close schools.
The Comptroller does not publicly report district counts below 30 students, citing privacy. That leaves hundreds of small districts without exact numbers for planning.
Rural School Leaders Offer a Different View
Randy Willis, director of the Texas Association of Rural Schools, told the Chronicle in an earlier report that most member districts have few private schools. He said that should mean minimal enrollment impact.
Willis also noted that lawmakers boosted funding for smaller districts and gave rural teachers larger raises. He said some provisions protect districts from losing too much state funding, at least temporarily.
State Leaders Push Back
Governor Greg Abbott signed Senate Bill 2 on May 3, 2025. The law created the Texas Education Freedom Accounts program, which is funded at $1 billion.
Abbott’s office says public school funding is at a historic high. Press Secretary Andrew Mahaleris said lawmakers added $8.5 billion last session, including $4 billion for teacher pay. He also said no money for school choice comes out of the public education budget.
The advocacy groups acknowledge that voucher money comes from a separate pot. They argue that districts are still affected because enrollment drives their funding.
Who Is Using Vouchers
The Comptroller reports about 110,000 voucher recipients statewide. Only about 30 percent previously attended a public school. The rest were already in private school or homeschool.
The Comptroller has asked lawmakers for up to $4.4 billion for the program next session. Every Texan said lawmakers should instead focus on raising the basic allotment, the foundation of public school funding. The group also supports enrollment based funding.
What Comes Next
The Senate Education Committee is scheduled to hold interim hearings on enrollment, teacher pay and voucher expansion. Districts across Texas are watching their enrollment counts this fall. Final funding impacts will become clearer as the school year continues.
