Texas Injects $8.5 Billion Into Public Schools but Limits Local Control

Texas has enacted House Bill 2, the state’s first comprehensive school-finance law in six years, injecting $8.5 billion into public education but sharply limiting how districts can spend the money. Governor Greg Abbott signed the measure after the 2025 session, framing it as the largest one-time school investment in recent memory. The law takes effect 1 September. More than half of the new funds—over $4 billion—are reserved for teacher pay raises determined by experience, district size and performance. Woodson Independent School District said the formula will lift a veteran teacher’s salary by about $20,000, while Mildred ISD projected increases of $4,000 to $8,000 for most educators. Only about $250 million is earmarked for support staff, and the basic per-student allotment rises a modest $55, to $6,215. District leaders say the prescriptive approach erodes the spending flexibility they previously used to cope with rising costs. Boerne ISD expects roughly $3.8 million from the law—about $2 million less than it had anticipated once new property-tax calculations were applied—leaving “a few hundred thousand” for expenses after covering salary mandates. Flour Bluff ISD forecasts that lower insurance costs could offset budget pressure by more than $1 million, yet Rockdale ISD cautions that the package will shrink, not eliminate, its deficit. The funding bill follows lawmakers’ approval of a $1 billion private-school voucher program and arrives as demographic shifts challenge traditional districts; 58 percent have lost enrollment since 2019 while charter schools expanded nearly 30 percent. Superintendents and educators welcomed fresh revenue but argued that tighter guardrails signal mistrust of local governance and may force additional cuts elsewhere.