Texas legislature passes nearly $9 billion school funding bill, largest increase ever

The Texas House and Senate both passed their versions of a major school finance bill, HB 2, and on Thursday reached an agreement on a final bill that now heads to the governor for his signature.

The bill includes $8.5 billion in new funding, the largest single increase in public education funding in Texas history.

It’s part of an education package that included two other major components, including the state’s first school choice bill, which allocates $1 billion to fund an Education Savings Account program for roughly 100,000 students. Gov. Greg Abbott signed the school choice measure into law earlier this month.

HB 2 allocates $4.2 billion for a record-high permanent increase in teacher and staff salaries and expands incentive pay and teacher training programs. It also allocates $1.3 billion to assist school districts with expenses including insurance, utilities and retirement contributions.

It allocates nearly $2 billion to update special education formulas and fund full-day pre-K, early learning interventions, and the Career & Technical Education program. It allocates another $430 million for school safety initiatives.

“We have been working diligently with the House in countless meetings and thoughtful discussions throughout the session to create the most effective school finance bill in Texas history,” Lt. Gov. Dan Patrick said. “House Bill 2 targets specific needs that will help create the best education system in America. I am proud of the work that members in both chambers, and both parties, have done.”

House Speaker Dustin Burrows, R-Lubbock, said the bill “will direct record new funding where it will make the biggest difference in the lives of students and teachers. The amended legislation reflects constructive input from both chambers and parties, and a shared commitment to delivering historic school funding and teacher pay raises this session. We’re grateful for the tireless work and collaboration of those who contributed to these negotiations and look forward to the Senate advancing the House’s top priority across the finish line – delivering a landmark win for Texas students, educators, and families later today.”

State Sen. Brandon Creighton, R-Conroe, who authored the Senate education package, said the majority of funds allocated in the bill “go straight to the classroom – not bureaucracy – ensuring student success drives every decision.” The bill also strengthens school operations and provides districts with the resources they need to balance their budgets in the long term.”

State Rep. Brad Buckley, R-Killeen, who authored the House education package, said the bill “provides the largest teacher pay raise in history, targeted funding for our special education students, investments in early childhood learning, and additional funding for our schools to address the rising fixed costs of operation.”

The agreement both parties and both houses reached “represents a historic breakthrough for rural Texas,” state Rep. Trent Ashby, R-Lufkin, said. “For far too long, small and mid-size districts have been asked to do more with less, and HB 2 directly responds to those challenges. The bill will deliver permanent, meaningful pay raises for rural teachers and school support staff, alleviate cost drivers for smaller districts that often face the tightest margins and highest costs, and invest in the long-term success of our students.”

“If the Legislature were to pass just one of the major components in HB 2 – be it record-setting teacher pay raises, full-day pre-K, or a long-overdue overhaul of special education – that would be a transformative victory in its own right,” state Rep. Diego Bernal, D-San Antonio, said. “But HB 2 delivers all of these reforms and more, and when taken together, they represent a truly landmark achievement for Texas public education.”

The bill directly responds to priorities asked for by educators, school districts, and advocates and “will translate into meaningful, measurable improvements in classrooms across our state,” he said.