Texas parents and Islamic private schools allege that state education officials have excluded them from participating in the newly established Education Freedom Accounts Program, raising concerns about religious discrimination and access to public benefits. The complaint was filed on March 11, 2026, in the United States District Court for the Southern District of Texas by Bayaan Academy Inc., Islamic Services Foundation, The Eagle Institute, Layla Daoudi, Muna Hamadah, and Farhana Querishi against Acting Comptroller Kelly Hancock, the Office of the Texas Comptroller of Public Accounts, and Mary Katherine Stout in her official capacity as Program Director over the Education Savings Accounts Program.
According to the complaint, Texas created the Education Freedom Accounts Program (TEFA) to allow parents to use public funds for approved educational expenses at private schools of their choice. The plaintiffs argue that while thousands of other private schools—including those affiliated with other faiths—have been approved for participation in TEFA, all eligible K through 12 Islamic schools have been excluded without explanation or notice. “The Constitution does not permit the State to open a public benefit program to private schools and then close the door when Muslim schools seek to enter,” states the filing.
The lawsuit details how several Islamic schools—Bayaan Academy Inc., Islamic Services Foundation (which operates Brighter Horizons Academy and Little Horizons Academy), and The Eagle Institute d/b/a Excellence Academy—submitted applications or attempted to apply for preapproval as required by law. Plaintiffs assert these schools meet all statutory criteria: they are accredited by recognized organizations, have operated for more than two years, administer nationally norm-referenced assessments where applicable, and are governed by boards composed entirely of American citizens residing in Texas. Despite this compliance, their applications were either ignored or removed from consideration without any formal deficiency notice or opportunity to respond.
For example, Bayaan Academy submitted its application on January 10, 2026; it was initially marked as approved but then removed from the online portal without warning after media coverage highlighted a lack of approved Islamic schools. Similarly, ISF’s Brighter Horizons Academy and Little Horizons Academy submitted applications on December 9, 2025 but received no response or explanation despite follow-up inquiries. Excellence Academy was reportedly unable even to submit an application after repeated requests.
Parent plaintiffs Layla Daoudi (Harris County), Muna Hamadah (Dallas County), and Farhana Querishi (Collin County) say they wish to use TEFA funds at their children’s current Islamic schools but cannot do so because those institutions are missing from the required preapproved list within the parent application portal. With a March 17 deadline looming for parent applications—and participation determined by lottery among applicants who select an approved school—the exclusion is described as “outcome-determinative” for families seeking an Islamic education.
The complaint alleges violations of multiple constitutional provisions: “The Free Exercise Clause forbids the government from imposing special disabilities on the basis of religious status. The Establishment Clause forbids government hostility and denominational preference. And the Equal Protection Clause forbids singling out one religious community for disfavored treatment under a facially neutral public program.” Plaintiffs further argue that due process rights were violated because there was no notice or chance to address alleged deficiencies before being excluded.
Plaintiffs point out that hundreds of Christian- and Catholic-affiliated private schools appear on TEFA’s approved list while no K through 12 Islamic school is included. They note that neither their organizations nor their funding sources have ties to foreign entities or groups designated as terrorist organizations—a concern raised publicly by state officials following political rhetoric linking some Muslim organizations with terrorism.
In addition to declaratory relief recognizing these alleged constitutional violations, plaintiffs seek immediate temporary restraining orders and preliminary injunctions preventing enforcement of TEFA’s March 17 parent application deadline until their claims can be heard. They request permanent injunctions requiring defendants not to discriminate based on religion when administering TEFA; processing pending applications from qualified Islamic schools; declaratory judgments confirming defendants’ mandatory duty under state law; attorneys’ fees; costs; and any further relief deemed appropriate by the court.
Attorneys representing plaintiffs include Eric A. Hudson and Cole P. Wilson (Arambula Terrazas PLLC); Maha Ghyas, Bradley W. Snead, Michael Adams-Hurta (Wright Close Barger & Guzman LLP); Murtaza F. Sutarwalla and Mansoor Broachwala (Edwards Sutarwalla Samani LLP); Omar Khawaja and Abdul Rahman Farukhi (Law Offices of Omar Khawaja PLLC); Ayesha Najam and Michael Davis (Gibbs & Bruns LLP). The case is identified as Civil No. 4:26-CV-1960.
Source: 426cv01960_Bayaan_Acdemy_v_Kelly_Hancock_Complaint_Southern_District_of_Texas.pdf
