Legislation increases school funding, teacher salaries

AUSTIN— Recently signed into law, House Bill 2 will greatly impact school funding as it is the largest public school funding package in state history.

Signed by Gov. Greg Abbott, HB 2 will give $8.5 billion to schools across the state.

"This critical school finance legislation is the largest public education funding increase in Texas history," said Gov. Greg Abbott. "House Bill 2 adds $8.5 billion to raise teacher and staff pay, keep our schools safe, expand career training programs for our students, and fund other public school needs—putting Texas on the pathway to be the best state in the nation for education.

The legislation will especially benefit teachers in rural districts and help impact the fight to retain teachers, with $4.2 billion going towards permanent pay raises for teachers and staff.

"What we're seeing, it looks promising to at least get us into a more balanced budget, but it's too early to really say," said Tammy Duhon, Anahuac Independent School District business manager.

For schools with less than 5,000 students, teachers with five or more years of experience will receive an $8,000 raise. Teachers with three to four years of experience will receive $4,000.

Duhon noted that while the bill outlines teacher raises, it didn't specify raises for other staff.

"Once you raise teacher salaries to that degree, then you have to look at all the other positions that you have on staff and try to make those compensations equivalent," Duhon said.

Duhon said while there is a $106 addition to help with raises for librarians and nurses, it doesn't account for custodians, cafeteria staff, maintenance staff and others, but she will know more when the bill is finalized.

"Our employees are working very hard and we want them to be as well compensated and as fairly compensated as possible," AISD Superintendent Cody Abshier said. "We're hopeful when we get the rest of the details of all this that it's going to be something that ends up helping us better compensate our hardworking AISD employees."

The bill also provides a salary increase to educators in larger districts across the state, including Barbers Hill ISD. Teachers with five or more years of experience will receive a $5,000 raise, and teachers with three to four years of experience will receive a $2,500 raise.

Locally, AISD will see an additional $3.07 million, increasing per-student revenue by $2,057, according to the Legislative Budget Board's analysis of the 2026 fiscal year funding.

Barbers Hill ISD will see an increase of $5.47 million, increasing per-student revenue by $720. East Chambers ISD will see an additional $3.37 million, increasing per-student revenue by $2,356.

"HB 2 is a commitment to every Texas teacher, student, and parent that we will prioritize education, not just in words, but in action," said Texas House District 23 Rep. Terri Leo Wilson.

The bill is designed to examine funding formulas and ensure resources are provided to each urban, suburban and rural school district in the state.

Other key components include $1.3 billion in allotment for basic costs to help districts manage rising fixed expenses like insurance, including TWIA and TRS contributions.

Additionally, about $2 billion will go towards expanding special education funding, full-day pre-K, and career and technical education; $430 million will go to school safety; and expanded incentive pay programs and teacher training support.

"As a former special education teacher and school administrator, I know firsthand how vital it is to invest in the classroom and in the dedicated teachers who make learning possible," Leo Wilson said. "I'm proud to help deliver this win for our communities and will continue to advocate for students and teachers at every level."