Governor Greg Abbott signed House Bill 2 (HB2) into law Tuesday, delivering a “historic” boost to public education funding and teacher pay across Texas.
According to a June 4 press release from the governor’s office, the $8.5 billion package includes a record $4 billion in salary raises for teachers and school staff. The goal is to build up the state’s education workforce and improve student success rates.
The bill signing occurred at Salado Middle School, where Abbott was joined by over 175 teachers, students, and parents.
“Now is the time to make Texas No. 1 in educating our children,” Abbott said. “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 bill also dedicates nearly $834 million to special education, $648 million to “early literacy and numeracy,” and $430 million to increasing overall school safety. Small and rural schools will receive $318 million in additional support, while $199 million will go toward expanding facilities for charter schools.
Abbott was accompanied by Salado ISD Superintendent Dr. Michael Novotny and Temple ISD Educator JoMeka Gray at the ceremony.
Gray, a Region 12 Teacher of the Year and 2025 Texas Teacher of the Year finalist, praised the legislation’s focus on teacher retention and support for special education.
“House Bill 2 is more than just policy—it is a promise to our teachers,” Gray said.
“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,” she added.
Abbott’s plan also expands career and technical education, particularly in smaller or previously underrepresented areas across Texas.
Lawmakers allocated $153 million for high-demand fields of work and job training facilities, while $187 million will enhance teacher preparation and certification programs.
The measure increases the Tier II basic allotment by $55 per student and funds school districts’ operational costs: including transportation, insurance, and utilities – by $1.3 billion.
In his 2025 State of the State Address, Abbott had previously declared an incoming increase in teacher pay raises and career training opportunities as emergency priorities for the legislative session.
Yesterday, the governor’s office announced that more than $481 million from the Teacher Incentive Allotment was distributed to over 42,000 designated teachers for the 2024-25 school year.
“The foundation is now in place for Texas education to start climbing the ranks,” Abbott said after signing the bill.