This legislative session, the Governor and state lawmakers prioritized increasing funding for Texas public schools, resulting in a historic $8.5 billion in new funding. The centerpiece is House Bill 2 (HB 2), a 231-page law signed by Governor Greg Abbott on June 4, accounting for $8.1 billion, including $4.2 billion for teacher pay, incentives, and retention.  Houston Area Funding Increases  Under the new formulas, Region IV schools are projected to receive over $1 billion under HB 2. Here are the estimates for the five largest districts in the region:  Houston ISD: $195M  Cypress-Fairbanks ISD: $126M  Katy ISD: $103M  Fort Bend ISD: $80M  Aldine ISD: $61M  Click here to search for individual districts to explore funding changes under HB 2.  Why This Matters for Houston’s Future  A strong public education system is foundational to Houston’s economic future. With more than 1.3 million students enrolled in the region’s schools, today’s learners are tomorrow’s workforce. Ensuring students are equipped with the knowledge, skills, and credentials needed to succeed in college, careers, or military service is essential to meeting the talent demands of our growing economy. Investments like House Bill 2 directly support Houston’s competitiveness by helping develop the educators and systems needed to prepare a workforce that can power the region’s continued growth.  Navigating the Bill  Rather than increasing the basic allotment, which is a pool of funds that can be spent on various eligible programs, lawmakers opted for targeted investments in specific programs, including teacher pay. Here are some of the key provisions in each article.  Article 1: Teacher Compensation & Incentives  Expands teacher designation levels  Boosts performance-based pay and retention bonuses  Establishes required liability insurance and prioritizes high-need campuses  Article 2: Educator Preparation   Limits the use of uncertified teachers  Creates new certification pathways and incentives  Launches state-funded training and mentorship pipelines  Article 3: Educator Rights  Eases job transfer rules and protects pay during unpaid leave  Waives certification fees for high-need subjects  Improves grievance processes and strengthens classroom authority  Article 4: Special Education  Updates funding and terminology for special needs services  Supports visually and hearing-impaired students  Enhances regional training and service delivery  Article 5: Early Childhood Education   Mandates statewide reading/math diagnostics for kindergarten through third grade  Funds extended learning time, pre-K partnerships, and parent-led tutoring  Article 6: College, Career & Military Readiness  Sets new performance goals and funding for dual credit, credentials, and military training  Expands support for career-focused programs like P-TECH and R-PEP  Article 7: School Finance Reforms   Increases aid for small districts, charters, bilingual programs, and school safety  Adds new funding for coastal school operations and insurance  Improves transparency and empowers the Commissioner to fix formula issues  HB 2 represents a sweeping overhaul of how Texas funds, supports, and prepares its educators and students, aiming for stronger outcomes from pre-K through high school and beyond. Click here for a one-pager explaining more about the bill from our partners at Texas 2036. 

HOUSTON (May 23, 2025)—Leaders in the Texas House and Senate reached an agreement on House Bill 2 to expand funding for Texas public schools on Thursday. Among many advances, this legislation increases public education funding by $8.5 billion, provides $4.2 billion for teacher and staff pay increases, and allocates nearly $2 billion towards early childhood education. Taylor Landin, Executive Vice President and Chief Policy Officer of the Greater Houston Partnership, released the following statement: “The $8.5 billion increase in funding for public schools is an investment in our children and fuels Texas' economic growth for the next generation. Houston business leaders applaud Lieutenant Governor Patrick and Speaker Burrows for their leadership and dedication to their robust, comprehensive approach to education modernization that we have seen throughout the 89th Legislature. Any individual component of House Bill 2 would have marked a major milestone, but combined, they represent the most significant investment in education in the history of Texas education to date.” The Greater Houston Partnership is committed to supporting businesses across the Houston region and working to maintain Texas’ exemplary business environment.   CONTACT: Brina Morales                                                 Sr. Director, Communications     bmorales@houston.org