AUSTIN, Texas — In a landmark move, Governor Greg Abbott signed House Bill 2 into law on June 4, 2025, injecting $8.5 billion into Texas public schools. The legislation, which received bipartisan support, marks the most significant education funding initiative in the state since 2019. It aims to tackle several pressing issues facing school districts, including teacher compensation, special education reform, and campus safety.
A major portion of the funding—$4 billion—is designated for teacher and staff pay raises. The bill introduces a tiered pay system, awarding raises based on teaching experience and the size of the school district. Teachers with three to four years of experience will receive a $2,500 raise in larger districts and $4,000 in smaller ones. Educators with five or more years of experience will see increases of $5,000 or $8,000 respectively. State leaders say the measure is intended to improve retention and recognize the growing demands placed on Texas educators.
In addition to salary boosts, House Bill 2 provides targeted investments to improve classroom outcomes and student support services. Special education received $834 million in new funding, with an emphasis on reducing class sizes and improving compliance with federal education standards. Early literacy and math programs were allotted $648 million to help close achievement gaps, particularly in districts still recovering from pandemic-era learning loss. Another $430 million is set aside for campus security upgrades and mental health initiatives, addressing safety concerns following several high-profile school incidents in recent years. The legislation also includes $1.3 billion to help districts cover escalating operational costs, including insurance premiums and utility bills.
Governor Abbott praised the bill, stating, “House Bill 2 ensures that our schools are funded better than ever, teacher pay and student funding are at all-time highs, reading and math performance will improve, and students will be better prepared for the workforce.” Education Commissioner Mike Morath echoed the sentiment, calling the bill a “historic win for Texas classrooms.”
However, despite the sweeping scope of the funding package, many school leaders say it may not be enough to close growing fiscal gaps. The Austin Independent School District is projected to receive $35.9 million from the law but still anticipates a $9 million shortfall due to rising expenses. Similarly, Fort Bend ISD recently approved a temporary property tax increase to fund teacher raises, underscoring the financial strain even well-resourced districts continue to face.
Public education advocates have generally welcomed the legislation but warn that its long-term effectiveness will depend on consistent state support. Critics argue that without structural reforms to the state’s school finance system—particularly regarding the “Robin Hood” recapture mechanism and funding tied to standardized test performance—the underlying inequities in Texas education will persist.
As House Bill 2 takes effect, the focus will now shift to implementation. School districts across the state are preparing budgets, salary schedules, and hiring plans based on the new funding framework. Lawmakers, meanwhile, are already facing calls to revisit the issue in future sessions to ensure the sustainability and fairness of Texas’s public education system.
