HB 2 Texas House · 89th Legislature (2025)

Relating to public education and public school finance.

HB 2 amends Texas education law to change how public school districts and charter schools compensate teachers. It requires schools to implement performance-based pay systems where teacher salaries differentiate based on appraisals, prohibits routine across-the-board raises, and mandates that all teachers be eligible for designations like "master" or "exemplary" based on evaluations. The bill also establishes criteria for districts to qualify for enhanced teacher incentive funding, including strategic evaluation systems for principals and placing highly effective teachers at high-need campuses. This directly affects school districts, charter schools, and classroom teachers by restructuring compensation and evaluation practices.

Issues: ✓ Education

Bill status signed all 5 stages cleared

Introduction

Feb 2025

Committee Review

May 2025

House Passage

Jun 2025

Senate Passage

Jun 2025

Signed into Law

Jun 2025

Introduced Feb 25, 2025 Signed Jun 20, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

Engrossed → Enrolled · 8 edits · Jun 20, 2025

MODERATE

This bill fundamentally restructures Texas teacher compensation and evaluation systems by creating new teacher designation categories, establishing performance-based pay incentives, and adding retention funding for both teachers and support staff. The changes expand how teachers can be classified and compensated based on their qualifications and performance, while also providing additional funding to retain experienced educators and support staff.

Scope change

The bill expands from primarily addressing charter school funding to comprehensively restructuring teacher compensation, evaluation systems, and retention funding across all school districts and charter schools in Texas.

ELIGIBILITY

Created new teacher designation categories including 'master', 'exemplary', 'recognized', 'acknowledged', and 'nationally board certified' teachers with specific compensation amounts for each level.

FISCAL

Established new teacher retention allotment providing $4,000-$8,000 per teacher based on experience level, and $45 per student for support staff retention funding.

Increased teacher designation compensation amounts from previous levels, with base amounts ranging from $3,000 to $12,000 plus high-needs and rural factors.

REQUIREMENT

Requires districts implementing enhanced teacher incentive systems to use performance-based compensation and strategic evaluation systems aligned with teacher designations.

DEFINITION

Added new definition for 'teacher of record' to clarify who is responsible for evaluating student achievement and assigning grades.

ENFORCEMENT

Requires districts to certify annually how teacher retention funds were used and that high-needs campuses were prioritized in fund allocation.

TIMELINE

Sets September 1, 2026 as deadline for redesignating recognized teachers to nationally board certified status, with various provisions expiring September 1, 2027.

SCOPE

Expanded applicability to include support staff (counselors, librarians, nurses, assistants, custodial staff, food services, bus drivers) under new retention funding provisions.

Introduced → Engrossed · 7 edits · May 23, 2025

MODERATE

This bill amends the Texas Education Code to update charter school funding formulas, modify performance-based eligibility requirements, and introduce new grant programs for teacher designation systems and parental engagement. The changes affect how open-enrollment charter schools receive state funding and establish new criteria for teacher incentives and resource campus designations.

Scope change

The bill expands applicability to include new grant programs for teacher designation systems, parental engagement initiatives, and additional days school year planning, while modifying existing charter school funding and eligibility rules.

FISCAL

Charter school allotment formula updated to use weighted average daily attendance instead of average daily attendance, with new caps of $100 million for 2025-2026 and $160 million for 2026-2027.

New grant programs established for local optional teacher designation systems, additional days school year planning, and parental engagement initiatives.

ELIGIBILITY

Performance-based funding restrictions for charter schools revised to require unacceptable ratings for two consecutive years rather than reflecting acceptable performance, with exceptions for first two years of operation and specialized facilities.

Resource campus designation requirements modified to reduce experience requirements from three to two years for certain subject areas and add waiver provisions for teacher designation requirements.

REQUIREMENT

New requirement added for charter school governing bodies to annually certify that no administrators or board members derive personal financial benefit from real estate transactions with the school.

New designation system for 'enhanced teacher incentive allotment' requiring districts to implement strategic evaluations, performance-based compensation, and place highly effective teachers at high needs campuses.

TIMELINE

Various provisions extended or set expiration dates, including task force abolition through December 2031 and resource campus application provisions through September 2033.

Floor votes · House Apr 16, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Jun 20, 2025

Signed into law

Signed by the Governor

executive

Jun 1, 2025

Upper · Passed

Signed in the Senate

upper

Jun 1, 2025

Lower · Passed

Signed in the House

lower

May 29, 2025

Introduced

House concurs in Senate amendment(s)-reported

upper

May 29, 2025

Introduced

Text of Senate Amendment(s)

lower

May 29, 2025

Introduced

House concurs in Senate amendment(s)

lower

May 25, 2025

Introduced

Corrected Senate Amendments Analysis distributed

lower

May 25, 2025

Introduced

Senate Amendments Analysis distributed

lower

May 24, 2025

Introduced

Senate Amendments distributed

lower

May 24, 2025

Lower · Passed

Senate passage as amended reported

lower

May 23, 2025

Upper · Passed

Passed as amended

upper

May 23, 2025

Upper · Passed

Amended

upper

May 23, 2025

Introduced

Amendment(s) offered

upper

May 22, 2025

Upper · Passed

Passed to 3rd reading as amended

upper

May 22, 2025

Amended

Amendment withdrawn

upper

May 22, 2025

Upper · Passed

Amendment adopted as amended

upper

May 22, 2025

Amended

Amendment amended

upper

May 22, 2025

Introduced

Amendment to amendment offered

upper

May 22, 2025

Upper · Passed

Amended

upper

May 22, 2025

Introduced

Amendment(s) offered

upper

May 20, 2025

Upper · Passed

Committee report printed and distributed

upper

May 20, 2025

Upper · Passed

Reported favorably as substituted

upper

May 19, 2025

Upper · Passed

Vote taken in committee

upper

May 15, 2025

Upper · Passed

Left pending in committee

upper

May 15, 2025

Upper · Passed

Testimony taken in committee

upper

Apr 23, 2025

Committee

Referred to Education K-16

upper

Apr 23, 2025

Introduced

Read first time

upper

Apr 22, 2025

Introduced

Received from the House

upper

Apr 17, 2025

Lower · Passed

Passed

lower

Apr 16, 2025

Lower · Passed

Passed to engrossment as amended

lower

Apr 16, 2025

Lower · Passed

Amended

lower

Apr 16, 2025

Amended

Amendment withdrawn

lower

Apr 16, 2025

Lower · Passed

Amendment adopted as amended

lower

Apr 16, 2025

Amended

Amendment amended

lower

Apr 16, 2025

Introduced

Substitute amendment to amendment fails

lower

Apr 16, 2025

Introduced

Amendment to amendment offered

lower

Apr 16, 2025

Introduced

Amendment(s) offered

lower

Apr 16, 2025

House · Passed

House Vote: pass (141-3-1)

house

Apr 11, 2025

Lower · Passed

Committee report sent to Calendars

lower

Apr 10, 2025

Lower · Passed

Committee report distributed

lower

Apr 3, 2025

Lower · Passed

Reported favorably as substituted

lower

Mar 6, 2025

Lower · Passed

Left pending in committee

lower

Mar 6, 2025

Lower · Passed

Testimony taken/registration(s) recorded in committee

lower

Mar 4, 2025

Lower · Passed

Left pending in committee

lower

Mar 4, 2025

Lower · Passed

Testimony taken/registration(s) recorded in committee

lower

Feb 25, 2025

Committee

Referred to Public Education

lower

Feb 25, 2025

Introduced

Read first time

lower

4 primary · 89 co-sponsors