Yesterday, the Texas Senate passed Senate Bill 2, authored by Senator Brandon Creighton, which establishes an education savings account (ESA) program, commonly known as the Voucher Bill. Governor Greg Abbott declared this issue an Emergency Item, allowing the bill to be considered and passed by the Senate before March 14th, the 60th day of the session.
SB 2 establishes a universal private school voucher program in the form of an education savings account managed by the Comptroller. It is funded from the General Revenue Fund, donations, and other funds. The program would allow any school age child to be eligible for a $10,000 per year voucher. An extra $1,500 per year is available for students with a disability. Homeschool students in the program, not in private school, could receive $2,000 per year. The ESA program would be limited by the capacity within private schools.
This bill passed the Texas Senate with a vote 19-12 and now moves to the Texas House for consideration.
Senator Juan “Chuy” Hinojosa voted against the bill and issued the following statement:
“I voted against Senate Bill 2 because it undermines the principle that public tax dollars should be dedicated to our Pre-K-12 public school system. Our constitution guarantees a free public education, and it is our duty to protect this fundamental right. This bill, under the guise of “school choice,” creates a program that subsidizes private schools with taxpayer funds —funds that should be used to support and strengthen our public schools. Instead, this bill sets up a system that diverts public funds meant for public schools to private schools, which are unaccountable to taxpayers.
By siphoning funds away from public schools, SB 2 will harm the very institutions that serve the vast majority of Texas students. If 1%, 3%, or 5% of students in my district, Senate District 20, were to accept a voucher under SB 2, those public schools would face significant financial losses. According to an analysis, at 1% voucher participation, public school in SD 20 would lose $25.3 million, $76 million at 3%, and $127 million at 5%. The hardest-hit districts include large school systems such as Corpus Christi ISD ($13.5 million loss at 5% take-up), Edinburg CISD ($13.8 million loss at 5%), and Pharr-San Juan-Alamo ISD ($12.3 million loss at 5%), all of which serve thousands of students. The loss of these funds means that students who remain in public schools will suffer from fewer educational opportunities and a diminished quality of education.
Public schools play a key role in training our future workforce. They provide a comprehensive education that prepares students for the challenges of the modern world. All of this is accomplished without parents writing a check or taking out loans to pay for this valuable education. By diverting state funds to private schools through vouchers, we risk weakening our public education system and hindering the development of a skilled workforce. This will have a negative impact on our economy.
It is important to address the unmet needs within our public schools before considering any diversion of state funds. Our teachers and school employees deserve a pay raise for their tireless dedication to our children’s education. We can and must do more to address the high cost of health insurance for our educators and their families to ensure their well-being. We must also prioritize the safety of our students and address unmet safety needs and ensure adequate resources for school security. While SB 2 claims to provide options for low-income students, it does not ensure that these students will actually gain access to quality private education.
SB 2 raises significant concerns regarding administrative costs and the potential for fraud within the certified educational assistance organizations and other private entities authorized to receive ESA funds. The fiscal note highlights that the program would require additional auditing, enforcement personnel, and legal oversight to investigate fraud and recover misused funds. This mirrors past issues seen in other states’ voucher programs, where lax oversight led to funds being spent on ineligible or fraudulent expenses, including luxury items, entertainment, and unregulated private services. The risk is further compounded by the lack of clear standards for how vendors and service providers qualify for funding, opening the door to predatory businesses that may exploit the program without delivering a quality education.
Public schools are the foundation of our communities, and they should be fully funded and strengthened, not undermined by policies that divert resources elsewhere. Vouchers will not solve the pressing issues impacting our students and teachers; instead, they will only exacerbate them. We must focus on strengthening our public education system, not dismantling it. We should focus our efforts to ensure our public schools remain the cornerstone of our community, providing a quality education for all Texas students. I oppose school vouchers and will continue advocating for a brighter future for our public education system. Our children deserve nothing less.”