The Texas Education Agency has said state-controlled HISD must eliminate multi-year failing accountability grades at all campuses before the state returns control to the district.
Data shows that areas like Fort Bend, Cy-Fair, and Katy were among the top areas in Texas for applicants to the state's school voucher program. Previous reports indicated that most applicants already attend private schools.
The families of more than 256,000 students have applied for school vouchers, but only around 90,000 to 100,000 students are expected to get any money.
Under the new initiative, HISD will allow non-profit organizations to run four high schools they say are top-performing, paving the way for the district to take a more hands-off approach to school funding and operations.
Of the more than 160,000 families who have already applied for Texas's new school voucher program, data shows that 76% said they were not already in the public school system.
Houston ISD officials are expected to finalize plans on Thursday to close 12 schools in the district.