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01/26/2026

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01/26/2026
LAWIN.news

Texas Legislature finalizes massive $8.5B school funding deal

by LAWIN.news May 22, 2025
written by LAWIN.news May 22, 2025
Photo credit: Austin-American Statesman
222

AUSTIN, TEXAS — Texas lawmakers in the House and Senate have reached an $8.5 billion agreement to increase funding for the state’s public schools, with provisions aimed at boosting student funding, supporting school districts, and raising teacher pay.

The deal includes a $1,600 increase in per-student funding and allocates $300 million specifically for small and mid-sized school districts.

Lawmakers reached the agreement after extended negotiations focused on addressing funding disparities and supporting the education workforce.

The package sets aside $4.2 billion for teacher compensation and includes $500,000 to help cover fixed costs in the education sector. The plan also redirects some previously proposed teacher raises toward support staff and other school personnel.

The funding initiative reflects a compromise between the chambers, designed to equitably distribute resources across both urban and rural districts. Legislators said the proposal aims to improve educational outcomes while balancing district needs.

Once approved, the new funding is expected to impact school operations, enhance programs, and improve learning environments. The legislation must still pass a final vote in the Texas Senate before implementation.

Education officials and stakeholders across Texas are watching closely as the bill advances. The funding plan is seen as a major step in the state’s efforts to strengthen its public education system.

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