Saturday, November 8, 2025

Texas Legislature Approves $8.5 Billion School Funding Package

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Texas Public Schools to Receive New State Funding

Texas public schools are one step closer to receiving new state money after the Senate gave preliminary approval to an $8.5 billion funding package. This deal was born out of lengthy negotiations with the House in recent weeks as the 2025 legislative session approaches the finish line.

Agreement on Funding

The vote on House Bill 2 comes the same day lawmakers formally announced an agreement to provide districts a $55 per-student increase to their base funding. The legislation also includes billions for teacher pay and special education, as well as dollars for educator preparation, early childhood learning, and staff salaries. The bill sets aside money for schools to tackle costs such as insurance, transportation, and utilities.

Next Steps for the Legislation

After the Senate grants final approval to HB 2, which will likely happen soon, the proposal will go back to the House. Lawmakers in the House are expected to sign off on the changes before sending the bill to Gov. Greg Abbott for final approval.

Reaction to the Legislation

Revealing the terms of the new legislation on the Senate floor, Sen. Brandon Creighton called it the most "transformative education plan that Texas has ever seen." Senate Republicans and Democrats alike celebrated the legislation, which marks a dramatic shift from the flexible spending system that district leaders and public education advocates have pushed for. Instead, the new system directs schools to spend state money as specified by the Legislature.

Key Provisions of the Bill

In addition to the $55 per-student base funding increase, HB 2 would allocate $500 million that districts can use to increase the salaries of school counselors, librarians, nurses, and other support staff. The bill also grants schools $106 per student to pay costs associated with transportation, hiring retired teachers, insurance, and utilities. Furthermore, HB 2 would raise educator pay using a system that considers years of experience and district size.

Teacher Pay Raises

  • Teachers with 3-4 years of experience in school districts with 5,000 or fewer students would receive a $4,000 raise.
  • Those with five or more years of teaching experience would earn $8,000.
  • Teachers with 3-4 years of experience in school districts with more than 5,000 students would earn a $2,500 raise.
  • Those with five or more years of experience would receive $5,000.

Impact on Special Education and Other Areas

The bill would overhaul Texas’ special education funding system to account for the individual needs of each student. It would also establish a compensation system for educator preparation and mentorship programs and set aside money for schools to better identify learning difficulties among the state’s youngest students. Additionally, it would raise the amount of money districts receive per student and campus for safety upgrades.

Conclusion

The passage of HB 2 marks a significant step forward for education in Texas, addressing long-standing concerns about funding, teacher pay, and support for special education and other critical areas. As the legislative session comes to a close, this bill represents a hard-won victory for advocates of public education. With its comprehensive approach to educational funding, Texas is poised to make meaningful improvements in the lives of its students and educators.

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