Texas Border Business
Texas Border Business
House Bill 2, passed during the legislative session that ended June 2, 2025, provides $8.5 billion in new funding for Texas public schools. A significant portion of this $4.2 billion funding is dedicated to teacher compensation through a new teacher retention allotment.
Under HB 2, teachers with three to four years of experience in school districts with more than 5,000 students will receive a $2,500 raise, while those with five or more years of experience will receive $5,000. In districts with 5,000 or fewer students, teachers with three to four years of experience will receive a $4,000 raise, and those with five or more years will receive $8,000.
The raises will take effect in the 2025–2026 school year. The bill also includes $500 million for pay raises for non-administrative staff, such as counselors, librarians, nurses, teacher assistants, custodians, food service staff, bus drivers, and administrative assistants. These pay raises are provided through a $45 per student adjusted average attendance allotment.
In addition to compensation, HB 2 provides $1.3 billion for a new fixed cost allotment to help districts cover expenses such as utilities, transportation, and health insurance premiums. The bill also allocates funds for early learning programs, school safety, special education, and teacher preparation initiatives.
The bill has now passed the Legislature and is now awaiting Governor Greg Abbott’s final approval. If signed, the funding measures will begin rolling out in the months ahead, with districts expected to finalize their updated pay scales and capital improvement plans by the start of the new school year.
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