Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB2

Regular Session

Relating to public education and public school finance.

Government Affairs & Regulatory Compliance Analysis

Business Impact

Who HB2 Affects

Regulatory Priority: critical

Significant regulatory changes (effective 2025-06-20). Review with your legal and compliance teams to understand implications.

Estimated Cost Impact

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Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Immediate Action Plan

Operational Changes Required

Strategic Ambiguities & Considerations

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

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Bill Text(with markup)

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Quick Reference

Frequently Asked Questions

Common questions about HB2

Q

What does Texas HB2 do?

HB2 fundamentally restructures Texas public education finance by replacing the "Instructional Arrangement" special education funding model with a "Tiers of Intensity" system and mandating a hard phase-out of uncertified teachers by 2029. While the bill injects approximately $7. 5 billion into the system and raises the Basic Allotment, it imposes strict new operational burdens regarding facility reporting, teacher compensation segregation, and pre-kindergarten partnership solicitations.

Q

Who authored HB2?

HB2 was authored by Texas Representative Brad Buckley during the Regular Session.

Q

When was HB2 signed into law?

HB2 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB2?

HB2 is enforced by Commissioner of Education, State Board for Educator Certification (SBEC), State Board of Education (SBOE) and Texas Education Agency (TEA).

Q

How significant are the changes in HB2?

The regulatory priority for HB2 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB2?

The cost impact of HB2 is estimated as "high". This may vary based on industry and implementation requirements.

Q

What topics does HB2 address?

HB2 addresses topics including disabilities, persons with, education, education--primary & secondary, education--primary & secondary--accountability and education--primary & secondary--admission & attendance.

Q

What are the key dates for HB2?

Key dates for HB2: Effective date is 2025-06-20. Rulemaking: Conduct initial review of National Board Certifications to determine reauthorization or revocation of designations. (2026-12-31); Post the initial list of districts/charters designated as enhanced teacher incentive allotment public schools. (2026-09-01). Consult with legal counsel regarding applicability.

Q

What are the penalties under HB2?

HB2 establishes the following penalties: administrative penalty of Revocation of Designation for Commissioner may remove a district's 'Enhanced Teacher Incentive Allotment' designation if criteria are no longer met.; administrative penalty of Program Ban (up to 5 years) for Entities failing to meet performance goals in partnership programs (PREPP) may be prohibited from participation.; administrative penalty of Withholding of Funds for Districts remaining in noncompliance with Special Education laws for more than one year (progressive sanctions).. Consult with legal counsel for specific applicability to your situation.

Q

Which Texas businesses are affected by HB2?

HB2 primarily affects healthcare providers and medical facilities. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Legislative data provided by LegiScanLast updated: January 11, 2026