HALL MONITOR: “YES” on the establishment of Educational Savings Accounts in Texas (HB 4340)

PDE Action supports Texas HB 4340, establishing Education Savings Accounts.

Name: Texas House Bill 4340, An act establishing Education Savings Accounts 

Summary: Provides school choice opportunities for Texas families by creating Education Savings Accounts (ESAs).  

Sponsors: Representative James Frank

Breakdown: ESAs allot taxpayer dollars to eligible families to spend on their child’s education expenses, which could include private schooling, tutors, or homeschooling materials like textbooks. 

House Bill 4340 would have opened this opportunity to certain Texas families, prioritized on income and student disability status. The first tier of students eligible would be those who qualify for reduced price school meals. The second tier includes families who make double that income. Students with special needs are in the third tier. All other Texas families would then be eligible for funds. 

Ninety percent of the average funds spent on a Texas pupil in public schools would be added to the ESAs of students in the first three tiers annually. Students in the fourth tier would receive half of those funds. The bill would have also established a tax credit for Texans who make contributions to the program.   

House Bill 4340 was left in committee during the 2023 legislative session. More than two dozen house Republicans signed a resolution opposing school choice after the Senate passed Senate Bill 8, an ESA bill similar to House Bill 4340. 

Why does PDE Action support this bill? 

PDE Action believes that school choice and parental rights go hand in hand. Parents, not the government, know what educational environments suit their child. PDE Action supports any effort to expand education opportunities to families.