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The Latest on School Funding in Texas

  • The 89th Legislature delivers an $8.5 billion Texas public education funding package with the passage of House Bill 2 (HB 2). $3.7 billion of this new funding targets teacher pay raises, new funding for support staff, investments in special education, and a new allotment for operational costs.
  • HB 2 raises the Basic Allotment from $6,160 to $6,215 and creates a new $1.3 billion Adjusted Basic Cost Allotment to help districts mitigate rising fixed costs, including insurance, utilities, and transportation.
  • Senate Bill 2 (SB 2) passes creating a new $1 billion taxpayer-funded voucher program. Texas parents will be able to use vouchers for the first time in the 2026-27 school year.
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School Districts Are Doing More With Less

visualization chart showing highest to lowest per pupil spending

Texas public schools are currently navigating significant financial challenges: record inflation, declining enrollment, increased school safety requirements, and a host of funding pressures beyond the control of local school districts.

Additionally, HB 2 failed to solve the state’s school funding crisis. Texas schools are still operating with billions less in funding than they had in 2019 when adjusted for inflation. Our state’s per-student funding remains far below the national average, ranking in the bottom 10 in the United States.

Texas Needs a New Funding Source for Public Education

Texas needs a new roadmap for funding our public schools. During the 90th legislative session, lawmakers have the opportunity to set the state on a new course to deliver increased funds for Texas kids and teachers in a lasting manner.

Let’s start a conversation about creating a lasting legacy for school funding and discuss how Texas can prioritize investing in our schools.

Raise Your Hand Texas proposes creating a new Legacy Education Fund, an endowment that will move Texas beyond two-year budget cycles and establish a lasting investment in our children.