Overview

• House Bill 2 passed the Texas House on a 122-13 vote, securing final legislative approval for $8.5 billion in new public school funding
• It directs about $4.2 billion to a teacher retention allotment that gives raises ranging from $2,500 to $8,000 depending on educators’ experience and district size
• School districts will receive a $55 increase to the basic allotment per student plus $106 per pupil for operational costs such as transportation, insurance and utility expenses
• Lawmakers overhauled the state’s special education funding formula, expanded the Teacher Incentive Allotment and set aside $500 million for support staff pay increases
• The measure marks the first comprehensive school finance reform since 2019 and follows enactment of a $1 billion private school voucher program