Texas Bars Islamic Schools From $1B Voucher Program, Lawsuits Filed

Governor defends exclusion over terrorism concerns as federal lawsuits challenge the policy.

Mar. 13, 2026 at 7:06pm

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Texas Governor Greg Abbott has defended the exclusion of certain Islamic schools from the state's new $1 billion Education Freedom Accounts (TEFA) school choice program, citing concerns over 'radical Islamic indoctrination' and 'historic connections to terrorism.' At least two federal lawsuits have been filed alleging that Islamic schools were improperly excluded from the program.

Why it matters

The exclusion of Islamic schools from the TEFA program has sparked legal challenges and raised questions about religious freedom and equal access to educational opportunities in Texas. The outcome of these lawsuits could have significant implications for the future of the state's school choice initiatives.

The details

Texas officials say the state must ensure that taxpayer funds are not directed to institutions affiliated with extremist organizations or foreign adversaries. Acting Comptroller Kelly Hancock requested a legal opinion from Attorney General Ken Paxton on excluding certain schools, stating that 'Texans' tax dollars should never fund Islamic terrorists or America's enemies.' The lawsuits argue that the exclusion of Islamic schools from the TEFA program is unconstitutional and amounts to 'impermissible religious gerrymanders.'

  • The TEFA program was approved by the Texas Legislature in 2025, allocating $1 billion for the initiative.
  • Applications for the TEFA program opened on February 4, 2026, and have received over 160,000 student applications so far.
  • The first lawsuit was filed on March 1, 2026, in the U.S. District Court for the Southern District of Texas.
  • A second lawsuit was filed on March 11, 2026, in the U.S. District Court for the Southern District of Texas.

The players

Greg Abbott

The Governor of Texas who has defended the exclusion of Islamic schools from the TEFA program, citing concerns over 'radical Islamic indoctrination' and 'historic connections to terrorism.'

Ken Paxton

The Texas Attorney General who issued a legal opinion on excluding certain schools from the TEFA program, stating that 'Texans' tax dollars should never fund Islamic terrorists or America's enemies.'

Kelly Hancock

The Acting Texas Comptroller who requested the legal opinion from Attorney General Paxton and is named as a defendant in the federal lawsuits.

Mehdi Cherkaoui

A Houston attorney who filed the first federal lawsuit challenging the exclusion of Islamic schools from the TEFA program.

Bayaan Academy, Inc., Islamic Services Foundation, and The Eagle Institute

Three Islamic schools that filed the second federal lawsuit against the state of Texas over their exclusion from the TEFA program.

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What they’re saying

“We don't want school choice funds going to radical Islamic indoctrination with historic connections to terrorism.”

— Greg Abbott, Governor of Texas (Twitter)

“Texans' tax dollars should never fund Islamic terrorists or America's enemies.”

— Ken Paxton, Texas Attorney General (The Dallas Express)

What’s next

The federal lawsuits will determine whether Islamic schools will be allowed to participate in the TEFA program before the first round of funds is distributed.

The takeaway

The exclusion of Islamic schools from Texas' new $1 billion school choice program has sparked legal challenges and raised concerns about religious freedom and equal access to educational opportunities. The outcome of these lawsuits could have significant implications for the future of school choice initiatives in the state.