TX Education Agency

The Texas Education Agency Finance Division, doing business as Accounting Division, is a U.S. government entity that acts as the prime recipient of federal education grants from the Department of Education and the Department of Health and Human Services, distributing funds through subgrants to local educational agencies, school districts, education service centers, and nonprofit organizations across Texas. TEA operates exclusively as a grant recipient rather than a federal contractor; it holds no federal contract awards and does not compete for procurement vehicles.

TEA's federal grant portfolio centers on K-12 education and early childhood services. The agency is the primary recipient on major formula grants supporting core state educational functions: Title I Grants to Local Educational Agencies (CFDA 84.010), English Language Acquisition State Grants (CFDA 84.365), Special Education Grants to States (CFDA 84.027), Twenty-First Century Community Learning Centers (CFDA 84.287), and Student Support and Academic Enrichment Grants (CFDA 84.424). Recent awards include a $737.3 million Title I formula grant from the Department of Education Office of Elementary and Secondary Education (July 1, 2026, through September 30, 2027), a $137.2 million English Language Acquisition award (same period), a $423.7 million Special Education Grants to States award (July 1, 2026, through September 30, 2027), and a $126.7 million Twenty-First Century Community Learning Centers award (same period). Beyond formula grants, TEA holds project grants including a $10.999 million Education Innovation and Research award from the Department of Education Office of Elementary and Secondary Education for high-impact cross-age tutoring in rural Texas elementary schools (August 1, 2026, through July 31, 2031), a $344.4 million Charter Schools program award (October 1, 2025, through September 30, 2027), and a $5 million GEAR UP project grant from the Department of Education Office of Postsecondary Education (October 1, 2025, through September 30, 2026). TEA also serves as a sub-recipient under federal grants managed by the Texas Workforce Commission, receiving subgrants for early childhood education initiatives, workforce development partnerships, and P-Tech programming support (Texas Workforce Commission sub-awards, multiple dates 2023–2026).

Customer concentration is heavily weighted toward the Department of Education and its sub-offices. The Department of Education Office of Elementary and Secondary Education accounts for 262 awards (roughly 61% of the total award count), the Department of Education Office of Special Education and Rehabilitative Services manages 50 awards, and the Department of Education Office of Career Technical and Adult Education administers 30 awards. The combined potential value of all awards stands at $884 thousand, but the combined obligated dollars across all awards—dominated by formula-grant obligations—total $87.29 billion. This massive spread between potential and obligated value reflects the formula-grant nature of TEA's portfolio: each award carries a statutory formula allocation that typically far exceeds the listed "potential value" field used for contract tracking. Nineteen awards are set to complete in the next twenty-four months, representing the volume of recompete exposure within that window.

TEA's federal grant work spans early childhood through secondary education, vocational training, and special populations. As a state educational agency and pass-through entity, TEA does not directly deliver classroom instruction but instead manages federal funds allocated to the state by formula, sets aside portions for state-level administration and state activities (typically no more than 5 to 10 percent per program), and distributes the remainder to over 100 sub-recipients per major program. Sub-recipient networks routinely include local school districts, regional education service centers, charter school operators, nonprofit educational organizations, and community-based service providers. Representative sub-recipient categories span traditional public school districts (urban, suburban, and rural), charter schools and school networks (such as Great Hearts America Texas and Orenda Charter Schools), education service centers (the state's twenty regional administrative units supporting smaller districts), specialized institutions (such as the Texas Department of Criminal Justice Windham School District and Texas Juvenile Justice Department for incarcerated youth), and community organizations (such as Bakerripley, Boys & Girls Clubs, and advocacy groups serving developmental disability populations).