Texas picks experienced operator for school choice program, announces name: Education Freedom Accounts

Texas has selected an experienced company to help administer its new $1 billion school choice program and announced the program’s official name: Texas Education Freedom Accounts.

Acting Comptroller Kelly Hancock announced in a release Monday the selection of Odyssey, which administers school choice programs in states including Iowa, Georgia, Louisiana, Utah and Wyoming, along with the program’s new name.

The New York-based company will manage a platform used by parents, schools, service providers and the state to enroll participants and access funds for tuition and other educational services. It will also operate an e-commerce marketplace where families can shop for eligible educational resources.

Hancock, who said last week he expects applications to open by Jan. 1, noted his office is “moving quickly to launch this program,” which lawmakers approved in the spring.

“This is about empowering families, expanding opportunity and making sure every child can learn in the environment that works best for them,” Hancock said. “We’re keeping the end goal in sight every step of the way – giving parents the freedom to choose the best educational path for their children to reach their God-given potential.” 

Odyssey CEO Joseph Connor said the company was “thrilled to partner with the Comptroller’s Office to launch a Texas-sized program to empower Texas parents,” adding that it is “ready to deliver a user-friendly and trustworthy platform that can ensure a seamless rollout.” 

Odyssey was selected through a competitive bidding process that included multiple companies. Its two-year contract is worth up to 5% of the program’s cost — about $50 million initially, according to the Houston Chronicle. 

The Education Freedom Accounts will provide families about $7,500 per student, just 85% of what the state spends per public school student. Families with special-needs students can receive up to $30,000 annually, and homeschool students are capped at $2,000. Low-income and special-needs students will receive priority. 

Once awarded, the funds can be spent on a wide range of approved educational expenses, including private school tuition, textbooks, uniforms, tutoring, therapies, transportation, technology and school meals.