The Texas Education Freedom Accounts (TEFA) program is officially launching its vendor portal next week. This is the moment microschool owners have been waiting for—and worrying about.
For months, the conversation has been about parents: how much they get ($10,500 vs. $2,000) and when they apply (February). But if you run a microschool, a pod, or a tutoring center, your deadline is next week.
On December 9, 2025, the state opens the digital gates for "Education Service Providers" and "Private Schools." If you aren't registered in this system, parents cannot use their ESA funds to pay you.
This guide covers exactly what you need to do to get your microschool ready for the launch of the Odyssey platform.
Who is "Odyssey" and Why Do You Need Them?
The Texas Comptroller has selected Odyssey to function as the program manager for the Texas Education Freedom Accounts. Think of Odyssey as the "PayPal" or "Venmo" of the ESA program.
- For Parents: It’s a digital wallet where their state funds are deposited.
- For You (The School): It is the marketplace where you list your services and the payment processor that deposits funds into your business bank account.
The Reality Check: There are no cash reimbursements in this program. Parents cannot withdraw the money and hand you cash. If your school is not listed in the Odyssey marketplace, you cannot access these funds.
The Pre-Game Checklist: Gather This Before Dec 9
Don't get stuck halfway through the application on Tuesday morning. Gather these four documents now.
- Your EIN (Employer Identification Number):
- You must have a business tax ID. If you have been operating your pod under your personal Social Security Number, you should apply for an EIN immediately via the IRS website.
- Crucial: The business name attached to your EIN must match your bank account exactly.
- Bank Verification:
- Routing Number and Account Number.
- A digital copy of a Voided Check or a Bank Letter. Odyssey often requires this to verify that the bank account belongs to the business entity listed on the application.
- Accreditation Proof (If Applicable):
- If you are claiming the "Private School" status (eligible for the ~$10,500 tier), have your accreditation certificate from a TEPSAC-recognized agency (like Cognia, TAAPS, or ACSI) scanned and ready.
- Not accredited? Do not panic. See the "Critical Decision" section below.
- Driver’s License / ID:
- Proof of identity for the primary account holder.
The Critical Decision: "School" vs. "Service Provider"
This is the most confusing part of the new law for microschool founders. How you categorize yourself determines which pot of money you can access.
Category A: The Accredited Private School
- The Funding: Students enrolled here are eligible for the full ~$10,500 annual award.
- Who Qualifies: Traditional private schools and microschools that have completed the accreditation process through a TEPSAC agency.
- What You Sell: "Tuition" and "Fees."
Category B: The Education Service Provider (The "Microschool Gap")
- The Funding: You are primarily servicing students in the ~$2,000 (homeschool) tier.
- Who Qualifies: Non-accredited microschools, learning pods, homeschool co-ops, and tutors.
- The Strategy: If you are not accredited, do not apply as a Private School. You will likely be rejected.
- Instead, register as a Vendor/Service Provider.
- You will bill for "Tutoring Services," "Curriculum," or "Supplemental Instruction."
- Note: Parents receiving the full $10,500 can also spend their funds on service providers (for tutoring or therapy), so being a Service Provider gives you access to both homeschoolers and private schoolers needing extra help.
Step-by-Step: Navigating the Portal Launch
While the interface may change slightly upon launch, here is the standard workflow for the Odyssey platform:
- Access the Portal: On Dec 9, go to the Texas Comptroller’s ESA website to find the vendor link.
- Create Your Profile: You will need to verify your email and set up Two-Factor Authentication (2FA).
- Select Your Region: You can choose to be a "Statewide" provider (great for online curriculum) or limit your services to specific counties (for physical microschools).
- Upload Compliance Docs: This is where that voided check and EIN letter come in.
- Wait for Vetting: The state has a vetting period between Dec 9 and late January to check backgrounds and tax status.
The Timeline: What Happens Next?
- December 9, 2025: Vendor Portal Opens (Schools apply).
- February 4, 2026: Family Application Portal Opens (Parents apply).
- Why this matters: You want to be approved and visible in the marketplace before parents log in on Feb 4. If a parent logs in and searches for your school, you want to be there.
- July 1, 2026: Funds are Released.
- Cash Flow Warning: Do not budget for this money in Q1 or Q2. The first deposits into parent accounts—and subsequently into your school's account—will not happen until the start of the state's fiscal year for the program.
Final Thoughts
The administrative burden of setting this up is heavy, but the stability of guaranteed state payments is a game-changer for the microschool business model.
If you are unsure whether to pursue accreditation to unlock that higher funding tier for 2027, now is the time to start asking those questions. But for today? Get your EIN ready.
Sources:
- Texas Comptroller of Public Accounts: Texas Education Freedom Accounts
- Texas Private Schools Association: School Choice & ESA Details
- Odyssey Platform: Vendor Solutions
Father of three who transitioned his children from traditional schooling to microschools. Researches alternative education models and helps other families navigate the microschool discovery process.
