Last week, Representative Dade Phelan (R – Beaumont) filed groundbreaking legislation, House Bill 5601 and House Joint Resolution (HJR) 217, directly tying the implementation of a potential school choice program in Texas to federal reimbursement for border security expenses. This innovative proposal underscores Texas’ long-standing demand for federal accountability and fair reimbursement of border-related expenditures, which have cost Texas taxpayers billions of dollars since September 1, 2015.
Under HB 5601 and the accompanying constitutional amendment (HJR 217), the state will
establish the Texas Education Savings Fund – a fund specifically designed to support a future
education savings account program, if passed by the legislature and approved by voters.
Implementation of any ESA program is conditioned upon certification by the Comptroller that
Texas has received federal reimbursement for the substantial and ongoing costs of securing the
border. These costs, borne by Texas taxpayers due to inadequate federal border enforcement,
total nearly $16 billion dollars over the last ten years, significantly impacting the state’s budget
and diverting resources from other critical needs, including public education.
“Texas taxpayers have carried an enormous financial burden for far too long due to the federal
government’s inability to secure the border,” said Representative Dade Phelan. “It is essential—
and long overdue—that the federal government reimburses Texas taxpayers for these substantial
expenses. This legislation ensures federal accountability and provides a responsible pathway to
fund educational options while ensuring public education remains a priority in Texas.”
The proposed legislation would allocate 50 percent of federal reimbursements to the Texas
Education Savings fund – which is a fund outside the treasury that is established in this
legislation. Those funds would be used toward a future ESA program, potentially offering
parents additional educational choices.
Critically, the remaining 50 percent of reimbursed funds will be explicitly reserved for public
education, reinforcing Texas’ longstanding commitment to strengthening its public schools and
prioritizing educational excellence across the state.
If approved and fully reimbursed by the federal government, this dedicated fund would
significantly enhance Texas’ fiscal flexibility, alleviating budget pressures and allowing the state
to invest more resources in other critical areas such as healthcare, infrastructure, and public
safety. For context, the current version of HB 3, the ESA legislation, proposes allocating $1
billion toward education savings accounts over the next biennium. By establishing the dedicated
fund outlined in HB 5601 and HJR 217, the state could reduce reliance on general revenue for
educational expenses, freeing up funds to address additional pressing priorities.
If passed by the legislature, Texas voters will have an opportunity to vote on this constitutional
amendment during the election scheduled for November 4, 2025.
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