Relating to prohibiting diversity, equity, and inclusion practices at school districts; authorizing an administrative penalty.

HB 4040 prohibits Texas public school districts from implementing or funding diversity, equity, and inclusion (DEI) practices. It bans activities such as using public funds for DEI training, creating DEI-based curricula, hosting racially exclusive events, giving preferential treatment in discipline based on race, and using restorative justice approaches. The bill requires school districts to promote a "colorblind meritocracy" ensuring equal treatment for all students regardless of race, ethnicity, religion, or nationality. School boards and employees are also barred from attending DEI-focused conferences or adopting policies supporting DEI practices. This legislation directly affects all Texas public school districts and their personnel.