Texas officials are moving to ensure the state's new school choice program doesn't become a pipeline for taxpayer dollars to flow indirectly to organizations with alleged extremist ties or hostile foreign influence.

Acting Texas Comptroller Kelly Hancock said his office has formally asked Attorney General Ken Paxton for an opinion on whether private schools with ties to terrorist-linked organizations or adversarial foreign governments can legally participate in the upcoming Texas Education Freedom Accounts program.

"The people of Texas deserve the highest assurance that no taxpayer dollars will be used, directly or indirectly, to support institutions with ties to a foreign terrorist organization, a transnational criminal network, or any adversarial foreign government," Hancock wrote on X.

The request comes as TEFA is preparing to launch its application window in early February.

Eligible families will be able to apply for $10,474 per child to cover private school tuition and approved expenses for the 2025-26 school year, with the program funded through a $1 billion allocation authorized by Senate Bill 2.

Under the law, private schools are eligible for mandatory preapproval if they are accredited by recognized agencies, administer nationally norm-referenced annual tests for grades 3-12, and have operated a physical campus for at least two years.

But Hancock's letter to Paxton, dated Dec. 12, warns that schools meeting those standards may still present legal problems if their affiliations raise red flags.

Hancock cited two specific concerns.

First, he said potential TEFA applicants accredited through the Texas Private School Accreditation Commission-approved agency Cognia are based at an address that has hosted publicly advertised events organized by the Council on American-Islamic Relations.

Hancock noted that Republican Gov. Greg Abbott recently designated CAIR as a "foreign terrorist organization" and a "transnational criminal organization," a declaration central to the legal fight.

Second, Hancock said another Cognia-accredited school may be owned or controlled by a holding group linked to a foreign adversary seeking influence over U.S. education — specifically an adviser to the Chinese Communist government.

Hancock suggested the situation may implicate Texas laws restricting foreign adversaries from owning or exerting influence over key property and infrastructure.

The comptroller asked Paxton to clarify whether a school otherwise eligible for TEFA could be disqualified if it has a direct or indirect affiliation with a designated organization, or if its ownership, governance, finances, or operational control can be traced to hostile foreign actors.

Hancock also pointed to the "other relevant laws" clause in Section 19.358 of SB2, warning that schools may be disqualified if they are found to be in violation of laws beyond TEFA's basic eligibility checklist.

CAIR has pushed back aggressively.

In a press release announcing a federal lawsuit against Abbott and Paxton, CAIR and affiliated legal groups called Abbott's proclamation "unconstitutional and defamatory," arguing it threatens civil penalties against a civil rights organization without due process.

CAIR argues any attempt to punish schools for hosting "Know Your Rights" events raises serious First Amendment concerns.

But Hancock insisted the issue is safeguarding public money and protecting Texas families.

"This request does not prejudge any institution or presume any outcome," Hancock told The Texas Tribune. "It simply reflects our obligation to safeguard personal data from foreign adversaries and ensure that no public funds are used, directly or indirectly, in a manner that conflicts with Texas law or undermines the security interests of our state."

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