HB 2 – Massive New Funding for Public Schools

HB 2 overhauls Texas’ public education finance system by dramatically increasing state spending, growing bureaucracy, and centralizing control under the Texas Education Agency. While the bill raises teacher pay and adds incentives for retention and designation, it does so through a sprawling set of mandates and grant programs that balloon the state’s financial obligations by over $7.8 billion in just two years. From a fiscally conservative standpoint, this is deeply concerning—there is no structural offset, no tax relief, and no sunset on the spending. The bill creates multiple new allotments, training requirements, and intervention mandates.

However, the bill does include some worthy improvements for charter schools. HB 2 modernizes and expands facilities funding for charter schools by replacing the outdated cap with a scalable, formula-driven model. Charters will now receive funding closer to what districts can raise through I&S taxes, significantly improving equity in access to facilities resources. However, the new safeguards aim to limit misuse and restrict access for underperforming or financially unstable operators. These provisions move toward leveling the playing field between traditional ISDs and charters which operate more efficiently, often have a better track record of success, and help provide school choice options for families.

Still, the few bright spots for charter schools do not outweigh the bill’s broader flaws. HB 2 represents an enormous increase in education spending. The nearly $8 billion in funding would be better spent on property tax relief and expanding Education Savings Accounts which provide more educational choice for Texas children and parents.