Governor Abbott Signs Record Public Education Funding, Teacher Pay Raise Into Law

TEXAS, June 4 - June 4, 2025 | Austin, Texas | Press Release

Governor Greg Abbott today signed House Bill 2 into law to provide a record $8.5 billion in new funding for public education and a historic $4 billion for teacher and staff pay raises during a bill signing ceremony with over 175 educators, students, and parents at Salado Middle School.

“Now is the time to make Texas No. 1 in educating our children," said Governor Abbott. "House Bill 2 ensures that our schools are funded better than ever, teacher pay and student funding are at all time highs, reading and math performance will improve, and students will be better prepared for the workforce. The foundation is now in place for Texas education to start climbing the ranks." 

View the Governor’s full bill signing ceremony here. 

The Governor was joined at the bill signing by Chairman Brandon Creighton, Chairman Brad Buckley, Salado Independent School District (ISD) Superintendent Dr. Michael Novotny, and Temple ISD teacher JoMeka Gray.

JoMeka Gray is a Kindergarten teacher at Kennedy-Powell Elementary School and just completed her 13th year as an educator and mentor. She was recognized as the 2024 Region 12 Teacher of the Year and a 2025 Texas Teacher of the Year Finalist. JoMeka is the wife of an Army veteran and mother of two and currently serves as a Senior Policy Fellow with Teach Plus Texas.

"House Bill 2 is more than just policy—it is a promise to our teachers," said Ms. Gray. "This legislation touches the lives of 5.5 million students enrolled in Texas public schools. It strengthens the teaching profession and largely supports the needs of special education students. On behalf of Texas educators, parents, and students, I offer my deepest thanks to our Governor and Legislature for supporting the future of public education." 

The Governor was also joined by Senator Pete Flores; Representatives Charles Cunningham, Paul Dyson, Caroline Harris Davila, Stan Gerdes, Ryan Guillen, Helen Kerwin, Stan Kitzman, Mark LaHood, Terri Leo-Wilson, Shelley Luther, John McQueeney, Angelia Orr, Katrina Pierson, Joanne Shofner, Valoree Swanson, Denise Villalobos, Wes Virdell; Texas Education Agency Commissioner Mike Morath; and other state and local officials. 

In his 2025 State of the State Address, Governor Abbott declared expanding career training and a teacher pay raise as emergency items this legislative session, and this record public education funding package delivers on those promises. House Bill 2 expands career and technical education—especially in rural areas—by increasing funding for high-demand fields and career training facilities. It also rewards exemplary teachers with permanent pay raises, investing in high-quality teacher preparation programs and providing incentives to help schools get their existing teachers certified.

This record $8.5 billion in new funding for public education includes key investments like:

• $4 billion for teacher and staff pay raises and expansion of the Teacher Incentive Allotment, Texas’ merit-based pay program
• $153 million to expand career and technical education opportunities
• $834 million for special education reforms
• $648 million targeted to strategies for improving early literacy and numeracy
• $187 million for teacher preparation and certification programs
• $430 million to increase the school safety allotment
• $1.3 billion for school district operational costs, including insurance, transportation, and utilities
• $199 million to expand the charter school facilities allotment
• $318 million to provide additional funding to small and rural schools
• $296 million for adjustments to the Tier II funding formula, which provides a $55 basic allotment increase per-student

Yesterday, Governor Abbott announced that more than $481 million in Teacher Incentive Allotment funds were awarded for over 42,000 designated Texas teachers during the 2024-25 school year. 

House Bill 2 (Buckley/Creighton) builds on the school finance reforms from 2019 by providing an additional $8.5 billion in various high impact funding strategies, including those identified in the Governor’s 2025 State of the State Address and Budget priorities.