Texas House Bill 2: What Educators Need to Know

In June 2025, Governor Greg Abbott signed House Bill 2 (HB 2) into law, committing $8.5 billion in new funding to public schools and $4 billion for teacher and support staff pay raises. It’s a substantial investment aimed at strengthening the educator pipeline, expanding student support services, and helping districts keep up with rising costs.

As Governor Abbott stated at the signing ceremony, “[HB 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” (source).

So, what exactly is in the bill, and what should district leaders be thinking about next?

Why HB 2 Was Introduced

HB 2 is a direct response to persistent challenges in Texas education, including flat per-student funding since 2019, rising inflation, and a significant teacher shortage. Informed by recommendations from the state’s Teacher Vacancy Task Force, the bill focuses on increasing compensation, supporting teacher preparation, and funding core priorities like special education and early literacy.

• Signed into law: June 4, 2025
• Goes into effect: 2025–26 school year

What’s in the Bill? A Closer Look at the Funding Increases

Teacher and Staff Compensation

HB 2 introduces new funding streams through the Teacher Retention Allotment (TRA) and Support Staff Retention Allotment (SSRA), with differentiated compensation based on experience and district size:

• Up to $8,000 for teachers with 5+ years of experience in small districts
• Up to $5,000 in larger districts
• It also expands the Teacher Incentive Allotment (TIA), enabling more educators to benefit from performance-based pay.

Special Education

Increased funding helps districts serve students with disabilities through staffing, training, and service delivery improvements—providing schools with tools to address IEP needs and compliance gaps.

Career and Technical Education (CTE)

Additional funding supports the growth of workforce-focused programs, including equipment upgrades, teacher stipends, and new CTE course offerings.

Teacher Preparation and Certification

Districts can now access funding to reimburse certification fees and support preparation programs—reducing barriers for those entering the profession and strengthening local pipelines.

Early Literacy and Numeracy

The bill targets foundational skills in reading and math, especially in early grades, aligning with state goals to improve long-term academic outcomes.

Funding for Small and Rural Schools

Rural districts with limited tax bases receive some of the largest per-student increases, helping level the playing field in staffing, services, and instruction.

Charter School Allotments

Open-enrollment charter schools are eligible for HB 2’s funding models, including TRA and SSRA, ensuring broader access to compensation supports.

Campus Safety Upgrades

Districts can apply HB 2 funds toward school safety compliance, including facility improvements and security training.

Increased Base Funding

The bill increases the basic allotment, the per-student base funding, by $55. While appreciated, this falls well short of the $395 originally proposed and the $1,300+ many district leaders cite as necessary to keep up with inflation and cost-of-living increases.

Which Districts Benefit the Most – and the Least

While all districts receive increased funding, the impact varies widely. Smaller districts with low enrollment often see the largest per-student increases, while larger or urban districts may receive smaller proportional gains.

Top 10 Districts by Total Operational Funding Increase

These districts are seeing the largest dollar increases in operational (M&O) funding, gains that allow for significant improvements in staffing, programming, and student support:

1. Seagraves ISD – $2.82M
2. Roosevelt ISD – $2.15M
3. Van Vleck ISD – $1.97M
4. Nocona ISD – $1.91M
5. Eastland ISD – $1.86M
6. New Boston ISD – $1.84M
7. Tidehaven ISD – $1.70M
8. George West ISD – $1.69M
9. CISD (Unspecified) – $1.68M
10. Sabine Pass ISD – $1.64M
    

Bottom 10 Districts by Total Operational Funding Increase

These districts are seeing the smallest overall increases—though still positive. Many are extremely small and operate with limited enrollment, which can constrain the overall funding growth:

1. Leary ISD – $84K
2. Divide ISD – $103K
3. San Vicente ISD – $105K
4. Westhoff ISD – $111K
5. La Gloria ISD – $137K
6. Excelsior ISD – $138K
7. Dew ISD – $143K
8. Morgan Mill ISD – $143K
9. Walnut Bend ISD – $145K
10. Grandview-Hopkins ISD – $149K
    

Top 10 Districts by Per-Student Funding Increase

Smaller, rural districts see the biggest impact when measured per student, often due to a low enrollment base. This funding goes further in these communities, helping to close long-standing equity gaps:

1. San Vicente ISD – $29,267
2. Valentine ISD – $11,749
3. Loop ISD – $6,638
4. Divide ISD – $6,348
5. Seagraves ISD – $6,074
6. Sabine Pass ISD – $5,255
7. Malone ISD – $4,439
8. Hubbard ISD – $4,435
9. Benavides ISD – $4,351
10. Vysehrad ISD – $4,328
    

Bottom 10 Districts by Per-Student Funding Increase

These districts are receiving the lowest increases per student. While their overall funding may be stable, the smaller per-student growth can present challenges when trying to address inflation or meet staffing needs:

1. Lometa ISD – $464
2. Garner ISD – $494
3. Leary ISD – $562
4. Dew ISD – $595
5. Slidell ISD – $608
6. CISD (Unspecified) – $643
7. Fort Davis ISD – $836
8. Dawson ISD – $859
9. Burkeville ISD – $869
10. Ezzell ISD – $906

How Progress Learning Helps Schools Make the Most of HB 2

HB 2 brings much-needed funding, but maximizing its impact requires the right tools. Progress Learning helps districts deliver on key priorities outlined in the legislation:

• Formative and summative assessments that align with TEKS and STAAR for elementary, middle, and high school students.
• Custom study plans and quick-click remediation, supporting special education, early literacy, and targeted interventions.
• Liftoff adaptive intervention, now integrated with NWEA MAP for reading, math, and science.
• Flat-rate pricing by campus, not per student—ideal for larger schools managing growth.

Final Thoughts

House Bill 2 is a significant step forward for Texas education. Now, the work shifts to implementation—and to ensuring these funds directly support student growth, teacher retention, and instructional equity. 

At Progress Learning, we’re proud to partner with Texas schools and districts as they put HB 2 into action.

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