Texas Legislative Update 2025: Key Bills Impacting School Districts

The Texas Legislature’s ongoing 89th session continues to shape critical policies for public education. Several significant bills currently advancing will profoundly affect school finance, accountability systems, and district operations. Below is an overview of these high-profile legislative developments relevant for school administrators and policymakers:

House Bill 2: School Finance Reform

Status: Awaiting Governor’s signature; effective 2025–2026 school year.

Key Provisions:

• Teacher and Staff Pay Raises: Approximately $4.2 billion allocated to significantly increase educator salaries, especially benefiting veteran teachers and smaller districts.

• Basic Allotment Increase: Per-student funding increased by $55, from $6,160 to $6,215—the first increase since 2019.

• Special Programs Funding: Nearly $2 billion earmarked for special education, Pre-K expansion, early literacy and math interventions, and career and technical education.

• School Safety: $430 million additional funding dedicated to security enhancements.

Implications: Districts should adjust budgets and salary schedules accordingly and prepare for program expansions.

House Bill 4: Accountability and Testing Overhaul

Status: Passed both chambers; awaiting final concurrence before Governor’s signature; expected implementation 2025–2026.

Key Provisions:

• Elimination of STAAR: Replaced with shorter assessments administered three times a year, providing faster results to guide instruction.

• A–F Accountability Ratings: Regular, annual issuance mandated, with significant rating system changes now requiring legislative approval.

• Limits on District Lawsuits: Prohibits districts from using public funds to challenge TEA’s accountability ratings; introduces expedited judicial review process.

Implications: Districts should prepare for new testing protocols and understand limited legal recourse against TEA decisions.

Senate Bill 2: Education Savings Accounts (Vouchers)

Status: Passed legislature; awaiting Governor’s signature; effective beginning 2026–2027 school year.

Key Provisions:

• Private School Vouchers: Establishes Education Savings Accounts funded at 85% of state per-pupil allocation (around $7,500), prioritized initially for low- and middle-income families and students with disabilities.

• District Safeguards: Provisions included to offset financial impacts if ESA students return mid-year.

Implications: Districts may experience enrollment shifts; strategic planning and community engagement will be vital.

House Bill 6: Expanded Student Discipline Authority

Status: Passed both chambers; awaiting Governor’s signature; effective 2025–2026 school year.

Key Provisions:

• Broadens school administrators’ authority to suspend students for significant disruptions and safety concerns.

• Restores districts’ discretion to suspend students in grades Pre-K through 2nd grade for disruptive, non-violent behavior.

Implications: Districts should update codes of conduct, train administrators, and clearly communicate new policies to families.

Senate Bill 260: Increased School Safety Funding

Status: Passed both chambers; effective September 1, 2025, for 2025–2026 school year.

Key Provisions:

• Safety allotment increases from $10 to $28 per student annually.

• Base campus funding for safety enhancements increases from $15,000 to $30,000 annually.

Implications: Additional funds will significantly aid compliance with state safety mandates and staffing security personnel.

House Bill 1481: Student Cell Phone Ban

Status: Passed both chambers; awaiting Governor’s signature; immediate effect upon signing with a 90-day policy implementation window.

Key Provisions:

• Prohibits students’ use of personal electronic devices during school hours.

• District flexibility provided in the implementation method and exceptions for educational or medical needs.

Implications: Districts should begin planning now for logistical management and community outreach.

Additional Legislative Measures of Interest:

• SB 12 (DEI Ban) and SB 13 (Library Book Restrictions) were highly debated but did not reach final passage this session. These issues are likely to re-emerge.

Conclusion

As the 89th Texas legislative session approaches sine die in June, the education landscape for Texas districts is becoming clearer. School leaders should actively prepare for these significant policy shifts, carefully monitoring official guidance from TEA to ensure effective compliance and strategic planning.