This legislative session, the Governor and state lawmakers prioritized increasing funding for Texas public schools, resulting in a historic $8.5 billion in new funding. The centerpiece is House Bill 2 (HB 2), a 231-page law signed by Governor Greg Abbott on June 4, accounting for $8.1 billion, including $4.2 billion for teacher pay, incentives, and retention.  Houston Area Funding Increases  Under the new formulas, Region IV schools are projected to receive over $1 billion under HB 2. Here are the estimates for the five largest districts in the region:  Houston ISD: $195M  Cypress-Fairbanks ISD: $126M  Katy ISD: $103M  Fort Bend ISD: $80M  Aldine ISD: $61M  Click here to search for individual districts to explore funding changes under HB 2.  Why This Matters for Houston’s Future  A strong public education system is foundational to Houston’s economic future. With more than 1.3 million students enrolled in the region’s schools, today’s learners are tomorrow’s workforce. Ensuring students are equipped with the knowledge, skills, and credentials needed to succeed in college, careers, or military service is essential to meeting the talent demands of our growing economy. Investments like House Bill 2 directly support Houston’s competitiveness by helping develop the educators and systems needed to prepare a workforce that can power the region’s continued growth.  Navigating the Bill  Rather than increasing the basic allotment, which is a pool of funds that can be spent on various eligible programs, lawmakers opted for targeted investments in specific programs, including teacher pay. Here are some of the key provisions in each article.  Article 1: Teacher Compensation & Incentives  Expands teacher designation levels  Boosts performance-based pay and retention bonuses  Establishes required liability insurance and prioritizes high-need campuses  Article 2: Educator Preparation   Limits the use of uncertified teachers  Creates new certification pathways and incentives  Launches state-funded training and mentorship pipelines  Article 3: Educator Rights  Eases job transfer rules and protects pay during unpaid leave  Waives certification fees for high-need subjects  Improves grievance processes and strengthens classroom authority  Article 4: Special Education  Updates funding and terminology for special needs services  Supports visually and hearing-impaired students  Enhances regional training and service delivery  Article 5: Early Childhood Education   Mandates statewide reading/math diagnostics for kindergarten through third grade  Funds extended learning time, pre-K partnerships, and parent-led tutoring  Article 6: College, Career & Military Readiness  Sets new performance goals and funding for dual credit, credentials, and military training  Expands support for career-focused programs like P-TECH and R-PEP  Article 7: School Finance Reforms   Increases aid for small districts, charters, bilingual programs, and school safety  Adds new funding for coastal school operations and insurance  Improves transparency and empowers the Commissioner to fix formula issues  HB 2 represents a sweeping overhaul of how Texas funds, supports, and prepares its educators and students, aiming for stronger outcomes from pre-K through high school and beyond. Click here for a one-pager explaining more about the bill from our partners at Texas 2036. 

Now that the Texas Legislature has wrapped its regular session, one issue stands at the forefront: water. In 2023, lawmakers created the Texas Water Fund with $1 billion to begin addressing the state’s $154 billion water infrastructure backlog. This year, legislators added another $2.6 billion and set the stage for a historic investment—$20 billion over the next 20 years. That long-term funding hinges on voter approval this November. Legislative Action The framework comes from Senate Bill 7 (SB 7) and House Joint Resolution 7 (HJR 7), authored by Sen. Charles Perry and Rep. Cody Harris. SB 7 restructures oversight and expands eligible projects. HJR 7 proposes a constitutional amendment to dedicate $1 billion annually from surplus state sales tax revenue. The current budget (Senate Bill 1) and Supplemental Budget Bill (House Bill 500) also include major water investments: $1B for water supply/infrastructure $881M to the Texas Water Fund $581M for newly eligible projects $130M to unlock federal matching funds What Happens Next The first part of SB 7 takes effect September 1. The second part, and the annual $1 billion dedication, only takes effect if voters approve HJR 7 on November 4. Houston Public Works completed a survey this week asking community stakeholders to identify local needs and priorities ahead of the election. Click here to read an expanded analysis of the bill. Ballot Language: November 4, 2025 ballot: "The constitutional amendment to dedicate a portion of the revenue derived from state sales and use taxes to the Texas Water Fund and to provide for the allocation and use of that revenue.” Why Water Funding Matters for Houston As the nation’s fifth most populous metro area, Houston relies on a vast and aging water infrastructure system to serve more than 7.8 million residents and fuel one of the country’s most dynamic economies. The region provides water to hundreds of industrial users and manages a growing population with increasingly complex demands. At the same time, chronic underinvestment and storm-related damage have left the system strained. Long-term, reliable state funding is critical to ensuring Houston can maintain and expand its water supply while modernizing the infrastructure that supports economic growth, public health, and resilience. A Vote “For” HJR 7 Means: Up to $1B per year of sales tax revenue above $46.5B goes to the Texas Water Fund (the Comptroller’s revenue estimate for fiscal year 2026 is $51.2 billion) Reduced dependence on annual legislative appropriations Priority funding for new water supply and infrastructure projects If approved, the funding starts in 2027 and runs through 2047. Lawmakers have the option extend the dedicated funding stream. Houston’s Stake Houston stands to benefit significantly, with over $265 million already earmarked for local projects. The city faces $480 million in infrastructure needs and could be central to an interim study on including wastewater projects in future state water plans. The outcome of this vote will determine whether communities across Texas have a sustainable, long-term water funding source.