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By Khaleda Rahman
National Correspondent
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The Texas comptroller’s office has announced that New York-based company Odyssey will help launch and manage the state’s $1 billion school voucher program.
The company will be in charge of selecting the first round of students for the program and vetting vendors, the Houston Chronicle reported on Monday. The comptroller’s office also announced the formal name for the program: Texas Education Freedom Accounts (TEFA).
Newsweek has contacted Odyssey for comment via email.
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Why It Matters
The program, signed into law by Governor Greg Abbott earlier this year, will allow Texas families to receive $10,000 per year to help pay for students' private school tuition. Under the program, families can also get $2,000 for homeschooling.
Supporters of school choice programs say such initiatives give families more choice by allowing them to pull their children out of poor-performing public schools and choose the best educational environment for them, while opponents argue they redirect resources away from public schools and exclude students with disabilities and those from low-income households.
What To Know
Odyssey will serve as a middleman between the state, parents and private schools by processing applications and voucher payments.
According to the comptroller’s office, Odyssey will manage “an end-to-end platform” that will “help guide families through the application process and allow them to pay tuition to schools and shop for eligible educational resources via an e-commerce marketplace.”
The contract will initially run for two years, according to the Chronicle. It is capped at an initial $50 million for the first two years, or 5 percent of the program’s total cost. But it’s a particularly lucrative contract since the size of the program is expected to grow in the coming years.
In January, ProPublica reported on the challenges states are facing as they hand out multimillion dollar contracts to a handful of private companies like Odyssey to manage school choice programs.
Odyssey, founded in 2021 by former teacher and lawyer Joseph Connor, says it partners directly with state agencies and educational vendors “to streamline the process that empowers parents to find the tools necessary for their children to succeed.”
The company already manages programs in Iowa, Georgia, Louisiana, Utah and Wyoming.
Odyssey previously operated a program in Idaho until 2023, when state officials replaced the company with its competitor, ClassWallet, due to concerns over questionable purchases made through the program, according to ProPublica.
What People Are Saying
Acting Texas Comptroller Kelly Hancock said in a statement: “We’re moving quickly to launch this program, 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. This is about empowering families, expanding opportunity and making sure every child can learn in the environment that works best for them.”
Odyssey CEO Joseph Connor said in a statement: “As the leading school choice platform in the country, we are thrilled to partner with the Comptroller’s office to launch a Texas-sized program to empower Texas parents. Having successfully served hundreds of thousands of students across the nation, we are ready to deliver a user-friendly and trustworthy platform that can ensure a seamless rollout.”
What Happens Next
The comptroller’s office has revealed that families are expected to be able to apply for funds in early 2026.
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