AUSTIN - A ruling was made in a TEA residency lawsuit against Progreso ISD on Tuesday.

A Travis County judge ruled in Progreso ISD’s favor. However, the victory doesn’t mean the school district is in the clear.

In 2015, the district sued the TEA for an investigation they had done four years prior. A TEA investigation found Progreso school officials were serving children outside of Texas to claim more funding.

The state claimed those children were from Mexico. TEA then ordered the district to reimburse approximately $1.8 million.

Progreso ISD then filed a lawsuit disagreeing with the investigation.

In October, a court heard evidence from both sides. They found the state agency failed to properly conduct an on-site special accreditation investigation.

The court also ruled TEA failed to provide the district with an opportunity for an informal review before the agency issued a full report on their investigation. TEA must now reissue their findings from the 2011-2013 investigation.

Before issuing a final report, the education agency will have to give Progreso ISD an informal review.

It’s still unclear if Progreso ISD violated any laws, rules or policies.

Count on CHANNEL 5 NEWS to bring you more details as they become available.