After hours of late-night negotiations, the Texas House and Senate have reached a hard-fought agreement on an $8.5 billion public school funding package, marking a significant step forward in education investment across the state. The bipartisan deal includes substantial pay raises for teachers, increased per-student funding, and new financial support for a wide range of educational initiatives.
The deal, which is $800 million more than the House’s original proposal, was finalized following intensive talks between leaders from both chambers, notably House Public Education Chair Brad Buckley (R-Killeen) and Senate Education Chair Brandon Creighton (R-Conroe).
Key Funding Highlights
At the heart of the legislation is a $3.7 billion allocation for teacher pay raises, part of a broader strategy to improve teacher retention and morale amid staffing challenges in Texas public schools.
Teachers with 3–4 years of experience will receive a $5,000 raise in districts with 5,000 or fewer students and $2,500 in larger districts.
For teachers with 5 or more years, the raise climbs to $10,000 in small districts and $5,500 in larger ones.
The bill also retains a $55 increase in the basic allotment per student, bringing the base funding to $6,555 per pupil. While modest, this increase is paired with a new $1.2 billion "fixed-cost allotment" to help schools cover systemic operational expenses like utilities, transportation, and employer retirement contributions.
Another $500 million will go toward pay increases for other school staff, supporting roles that often go unrecognized but are essential to school operations.
Investments in Educational Quality and Safety
In addition to compensation boosts, the bill allocates funding across several educational priorities:
$850 million for special education
$430 million for school safety
$433 million to improve reading proficiency
$243 million for a statewide “Bluebonnet Curriculum”
$153 million for Career and Technical Education
$135 million for teacher preparation programs
$318 million to support small and mid-sized districts
$200 million for charter schools
Lawmakers also expanded the Teacher Incentive Allotment program by adding a new “acknowledged” designation alongside “recognized,” “exemplary,” and “master,” which comes with tiered bonuses and is designed to reward teacher effectiveness.
Sen. Creighton described House Bill 2 as “the most complex funding bill” of the legislative session, reflecting its wide scope and the detailed negotiations it required.
Political Context and Parallel Negotiations
Though HB 2 deals exclusively with public school finance, its fate became intertwined with Senate Bill 3, a controversial piece of legislation seeking to ban certain THC-infused consumable hemp products in Texas.
While the bills are unrelated in policy, legislative sources confirmed that negotiations over HB 2 were influenced by behind-the-scenes discussions around SB 3. Senate leaders, particularly Lt. Gov. Dan Patrick, have prioritized SB 3, calling it a “life or death issue,” leading some House lawmakers to delay movement on it while hammering out education funding details.
The updated version of SB 3 — significantly expanded from its original 18 pages to 123 — allows limited sales of oil-based tinctures and hemp beverages under strict packaging rules, though it bans synthetic cannabinoids and restricts delta-9 THC levels to under 10 milligrams. The bill also prohibits combining THC with substances like alcohol, nicotine, kratom, or psychoactive mushrooms.
An amendment by Rep. Tom Oliverson (R-Cypress) aims to ban “intoxicating” hemp products outright, further intensifying the policy fight between House and Senate members, as well as among industry stakeholders and public health advocates.
What’s Next
Both HB 2 and SB 3 now head toward final floor votes in their respective chambers. If passed, they will mark major legislative victories for the 89th Texas Legislature — one addressing public school investment, the other drawing new lines in the ongoing debate over hemp and cannabis products.
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