This legislative session, the Governor and state lawmakers prioritized increasing funding for Texas public schools, resulting in a historic $8.5 billion in new funding. The centerpiece is House Bill 2 (HB 2), a 231-page law signed by Governor Greg Abbott on June 4, accounting for $8.1 billion, including $4.2 billion for teacher pay, incentives, and retention.
Houston Area Funding Increases
Under the new formulas, Region IV schools are projected to receive over $1 billion under HB 2. Here are the estimates for the five largest districts in the region:
- Houston ISD: $195M
- Cypress-Fairbanks ISD: $126M
- Katy ISD: $103M
- Fort Bend ISD: $80M
- Aldine ISD: $61M
Click here to search for individual districts to explore funding changes under HB 2.
Why This Matters for Houston’s Future
A strong public education system is foundational to Houston’s economic future. With more than 1.3 million students enrolled in the region’s schools, today’s learners are tomorrow’s workforce. Ensuring students are equipped with the knowledge, skills, and credentials needed to succeed in college, careers, or military service is essential to meeting the talent demands of our growing economy. Investments like House Bill 2 directly support Houston’s competitiveness by helping develop the educators and systems needed to prepare a workforce that can power the region’s continued growth.
Navigating the Bill
Rather than increasing the basic allotment, which is a pool of funds that can be spent on various eligible programs, lawmakers opted for targeted investments in specific programs, including teacher pay. Here are some of the key provisions in each article.
Article 1: Teacher Compensation & Incentives
- Expands teacher designation levels
- Boosts performance-based pay and retention bonuses
- Establishes required liability insurance and prioritizes high-need campuses
Article 2: Educator Preparation
- Limits the use of uncertified teachers
- Creates new certification pathways and incentives
- Launches state-funded training and mentorship pipelines
Article 3: Educator Rights
- Eases job transfer rules and protects pay during unpaid leave
- Waives certification fees for high-need subjects
- Improves grievance processes and strengthens classroom authority
Article 4: Special Education
- Updates funding and terminology for special needs services
- Supports visually and hearing-impaired students
- Enhances regional training and service delivery
Article 5: Early Childhood Education
- Mandates statewide reading/math diagnostics for kindergarten through third grade
- Funds extended learning time, pre-K partnerships, and parent-led tutoring
Article 6: College, Career & Military Readiness
- Sets new performance goals and funding for dual credit, credentials, and military training
- Expands support for career-focused programs like P-TECH and R-PEP
Article 7: School Finance Reforms
- Increases aid for small districts, charters, bilingual programs, and school safety
- Adds new funding for coastal school operations and insurance
- Improves transparency and empowers the Commissioner to fix formula issues
HB 2 represents a sweeping overhaul of how Texas funds, supports, and prepares its educators and students, aiming for stronger outcomes from pre-K through high school and beyond. Click here for a one-pager explaining more about the bill from our partners at Texas 2036.