TX: Texas’ new $8.5B school funding bill explained

Jun 10, 2025

The Texas Tribune

Texas is moving away from the long-scrutinized special education funding system that gives money to districts based on the classroom setting where a child with a disability receives instruction. Now, schools will receive dollars based on the individual needs of that student — an approach educators, lawmakers, and public education advocates consider more equitable. The new system, which Texas Education Commissioner Mike Morath will design, will take effect at the beginning of the 2026-27 school year. The education chief must consider the nature of services provided to students, the technology and equipment required, and the professional needs of educators. When HB 2 takes effect later this year, districts will also start receiving $1,000 for each assessment they conduct evaluating kids for disabilities.

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