By Michael Wood, Vice President, Education & Workforce
On Wednesday, June 4, Gov. Greg Abbott capped off a marquee session for education and workforce investment by signing House Bill (HB) 2, the state’s latest investment in public schools, into law.
Led by HB 2’s $8.5 billion investment, Texas lawmakers approved more than $10 billion in new funding for the state’s education and workforce systems over the next biennium, including significant new funding for higher education research, workforce development, and child care.
This is the largest public school funding increase in Texas history
Heading into the 89th Texas Legislative Session, there was consensus among lawmakers that the state needed to boost public education spending. Per-pupil funding had not increased since 2019, and school districts statewide were facing dramatic budget deficits as a result of inflation and expiring federal pandemic relief funds. In North Texas alone, aggregate budget deficits among ISDs totaled nearly $400 million for the 2024-25 school year.
Five months of negotiation saw HB 2, authored by House Public Education Chairman Brad Buckley, balloon from an initial $5 billion investment to a historic $8.5 billion by the end of session, the largest-ever public school funding increase in Texas.
Roughly half of that investment– $4.2 billion – is dedicated to teacher pay raises, a shared priority of Gov. Abbott and Lt. Gov. Dan Patrick. For most ISDs, teachers will receive a set compensation increase based upon their years of experience in the classroom. School districts like Dallas ISD, that utilize a comprehensive pay-for-performance compensation system, can allocate the raises based on their teacher evaluation system.
The remaining funds are divided across a variety of strategic initiatives, including $1.3 billion for a new allotment for basic operational costs, $677 million for pre-K and early learning, $153 million for career and technical education programs, and $135 million to support teacher preparation and certification. HB 2 also makes big investments in special education and school safety, at $850 million and $430 million, respectively.
School districts statewide will see increased funding beginning this fall for the 2025-26 academic year.
Additional funds target higher education, workforce development, and child care
Lawmakers also invested in the years before and after a student’s PK-12 career. In higher education, the legislature provided additional funding for research, workforce development, and facilities maintenance.
Texas legislators invested approximately $400 million to clear the Texas Research Incentive Program (TRIP) backlog. TRIP provides state matching funds for private gifts that support research initiatives at certain Texas universities. In the 89th Texas Legislative Session, lawmakers opted to fully fund the backlog of eligible projects – including more than $150 million in matching grants for DFW universities – contingent upon repeal of the program.
Through HB 42, led by House Higher Education Chairman Terry Wilson, lawmakers also increased funding for the Higher Education Fund, which provides resources for certain universities to invest in campus facilities, by 50%, from $394 million to $591 million.
Lastly, the legislature approved Senate Joint Resolution (SJR) 59 by Senator Brian Birdwell. SJR 59 will place a constitutional amendment proposition on the November 2025 ballot to establish an $850 million invested endowment for the Texas State Technical College system. If approved by voters, the endowment will generate funding each year to support the capital needs of Texas State Technical College campuses throughout the state, including the North Texas campus in Red Oak.
In child care, state budget writers included $100 million in new funding to serve more families through Texas’ child care subsidy program. Presently, more than 90,000 eligible children are on the waitlist for child care subsidies statewide, with nearly 5,000 in just Dallas County. The state’s child care subsidies help parents of young children pursue an education or participate in the workforce. The new tranche of funding will help to reduce the waitlist by roughly 10,000 over the next biennium.
Looking ahead
The 89th Texas Legislature made a significant commitment to the state’s education and workforce infrastructure. Now, state agencies will be tasked with standing up new programs and ensuring allocated funding reaches classrooms throughout Texas.
As we move toward November, the DRC will keep our members informed as the constitutional amendments ballot takes shape, including propositions related to SJR 59.
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