Texas Education Funding: Historic Investment and What It Means for Dallas

October 22, 2025

Key insights from United to Learn’s Margaret J. Hirsch Women’s Forum in Partnership with D Magazine. 

The 89th Texas Legislature made history this year with an $8.5 billion investment in public education—the largest funding increase in state history. But what does this actually mean for Dallas students, teachers, and families? At United to Learn’s recent Women’s Forum, education policy expert Bridget Worley of Commit Partnership and Dallas ISD District 7 Trustee Ben Mackey broke down the numbers, the nuances, and the narrative we need to change about public education in our city. Gillea Allison, D Magazine President, served as the event host. 

Texas Education Funding: The $8.5 Billion HB2 Investment

House Bill 2 represents a turning point for Texas classrooms, but context matters. While $8.5 billion is significant, it doesn’t fully restore funding to pre-pandemic levels. When adjusted for inflation, Texas would have needed $14.8 billion to return to 2020 pre-COVID funding levels. Still, this investment signals a renewed commitment to public education after years of stagnant support.

Where the Money Is Going: How House Bill 2 Funding Is Distributed

The funding breakdown reveals clear priorities:

Teacher Compensation: $3.5 Billion

“There is a lot of new money that has been dedicated by the state to help support our best teachers and bring new teachers into the system,” said Bridget Worley, highlighting one of the top takeaways from the recent legislative sessions.

Nearly half of the new funding targets teacher pay through two key programs:

  • Teacher Retention Allotment (TRA): Across-the-board raises for all teachers with 3+ years of experience—$2,500 to $8,000 depending on district size and experience level. This isn’t a one-time bonus; it’s a sustained increase to base compensation.
  • Enhanced Teacher Incentive Allotment (TIA): Building on Dallas ISD’s pioneering model, this performance-based compensation system has gone statewide. Dallas ISD teachers now average $77,000 annually, and the district is retaining teachers at higher rates than both regional and state averages—a remarkable achievement for an urban district.

Support Staff: $500 Million Bus drivers, counselors, librarians, custodians, food service workers, and nurses received dedicated funding for pay increases at $45 per student.

Special Education, Early Learning, and Safety The remaining funds target critical needs, including special education services ($1.2 billion), early learning programs ($500 million), and campus safety initiatives ($430 million).

Texas School Funding Gaps and Challenges

Here’s what often gets overlooked: the basic allotment—unrestricted funding that districts can use to meet their unique needs—increased by only $55 per student (from $6,160 to $6,215). This was the first increase since 2019. Recent investments and targeted funds support important priorities, yet districts continue to navigate tight budgets.

Worley explained that the legislature focused on providing dedicated, restricted funding rather than unrestricted funding, such as the basic allotment.

Unrestricted funding helps school districts keep pace with inflation or rising costs to operate student programs, fund classrooms, and meet new requirements. In constant dollars, schools are still operating below pre-pandemic funding levels.

“While we had a huge increase, and I applaud the legislature for that, and the work we’re going to do,” said Ben Mackey. “There is still more work to be done.”

Deferred maintenance across Texas campuses totals roughly $6 billion, and operational dollars can’t be used to address those facility needs. That’s why bond elections are so important—they enable districts to repair aging buildings, enhance safety, and create modern learning spaces that inspire students and teachers alike.

Still, even strong bond programs can’t meet every need. Sustained investment from both public and private partners remains essential to ensure classrooms have the tools, resources, and support every student needs.

Strengthening Texas’ Teacher Pipeline Through HB2

One of the most urgent issues facing Texas education is teacher certification. Since 2014-15, the percentage of traditionally prepared teachers entering classrooms has been cut in half. In 2023-24, only 20% of new teachers came through traditional preparation programs, while 56% entered uncertified.

The impact on students is measurable. Research shows that students taught by uncertified teachers with no prior classroom experience lose three to four months of learning in both reading and math compared to students with traditionally prepared teachers.

HB 2 addresses this crisis with a phased approach:

  • By the 2026-27 school year: All K-5 core subject teachers must be certified
  • By the 2027-28 school year: All K-12 core subject teachers must be certified (with possible extensions through 2029-30)

Dallas ISD is ahead of this curve, investing in “grow your own” programs, partnering with Dallas College on teacher residencies, and supporting pathways through Teach for America and other preparation programs. The Teacher Preparation Allotment now provides dedicated funding to school districts, colleges, and university initiatives. United to Learn’s Aspiring Teacher is a “grow your own” program funded by private dollars.

Understanding Texas Education Savings Accounts (ESAs)

The elephant in the room is Texas’ new Education Savings Account (ESA) program—often called vouchers. Applications are expected to open in early 2026, but critical questions remain unanswered:

  • How many families will participate?
  • Will participants be current public school students or those already in private education?
  • What will the total cost be?

The Comptroller will provide a full cost report in spring 2026, giving us our first comprehensive picture. 

Dallas ISD Success Story: Progress and Innovation in Public Education

Perhaps the most important message from the forum: Dallas ISD’s story needs to be heard.

“There was a time in the 1990s when Dallas ISD was really struggling,” Mackey acknowledged. “But there have been substantial changes that have made Dallas ISD a model nationwide.”

The facts support this transformation:

  • 70% of Dallas ISD schools are rated A or B campuses
  • The district offers extensive school choice within the public system
  • Innovative programs include pathways to associate degrees through Dallas College
  • The district is retaining teachers at rates that exceed both regional and state averages
  • Dallas ISD pioneered the Teacher Incentive Allotment that’s now a statewide model

Superintendent Elizalde’s leadership has reduced the number of D or F-rated campuses from 65 to just 16—a dramatic improvement that deserves recognition.

What You Can Do

Volunteer: Join us this fall!

…and more ways to engage throughout the year.

Advocate: Be a part of the conversation. The Women’s Forum returns in February with The Student Wellness Crisis and April 16 with The Impact of AI on the Future Workforce.

Invest: Support United to Learn’s mission to bridge funding gaps and bring vital resources to Dallas ISD classrooms. Where public dollars end, your generosity keeps learning thriving.

Stay Connected: Subscribe to United to Learn for updates on education news, community events, and volunteer opportunities that uplift Dallas ISD schools. Follow @unitedtolearn on LinkedIn, Instagram, Facebook, and X.

The $8.5 billion investment represents historic progress, but the work of transforming public education continues. By staying informed and engaged, we can ensure these resources translate into meaningful improvements for every Dallas student.

The United to Learn Women’s Forum event was held at The Communities Foundation of Texas on October 16, 2025. More than 80 guests gathered to learn about and discuss recent Texas legislative updates. Women’s Forum Committee members Victoria Brown and Whitney Fogel Lewis co-chaired the event. Find information about upcoming Women’s Forum events here.

 

FAQ: Understanding Texas Education Funding

Q: What is House Bill 2 (HB2)?

A: House Bill 2, passed by the 89th Texas Legislature, represents a historic $8.5 billion investment in public education—the largest increase in state history. It includes targeted funding for teacher compensation, early learning, special education, and campus safety, along with small increases to districts’ basic operating funds.

Q: How much did the basic allotment increase?

A: The basic allotment—the per-student amount schools receive for general operations—rose by $55, from $6,160 to $6,215. This marks the first increase since 2019. While progress is made, it doesn’t fully offset inflation or cover the rising costs of running programs, maintaining facilities, and supporting classrooms.

Q: What’s the difference between a bond and a school district’s operating budget?

A: Bonds fund capital projects—like repairing buildings, updating safety systems, and creating modern learning environments. They do not cover day-to-day expenses such as teacher salaries, instructional materials, or student programs. Both are essential: bonds improve learning spaces, while operating funds sustain the people and programs inside them.

Q: Why is teacher certification such a big focus in HB2?

A: Texas faces a teacher pipeline challenge, with fewer educators entering the field through traditional certification programs. HB2 sets new standards requiring all K–5 core subject teachers to be certified by 2026–27 and all K–12 core teachers by 2027–28. Dallas ISD is leading the way with initiatives like its teacher residency programs and partnerships with organizations.

Q: What are Education Savings Accounts (ESAs), and how might they affect public schools?

A: ESAs—sometimes called vouchers—allow families to use state funds for private school education. The program is still being developed, and key details, including participation and cost, will be released in 2026. Leaders continue to assess how ESAs might impact enrollment and funding in public schools.


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