HB 2419

relating to special education and special education funding under
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 8.051(d), Education Code, is amended to
(d)  Each regional education service center shall maintain
core services for purchase by school districts and campuses.  The
(1)  training and assistance in:
(A)  teaching each subject area assessed under
(B)  providing instruction in personal financial
literacy as required under Section 28.0021;
(2)  training and assistance in providing each program
that qualifies for a funding allotment under Section 48.102,
48.1021, 48.103, 48.104, 48.105, or 48.109;
(3)  assistance specifically designed for a school
district or campus assigned an unacceptable performance rating
(4)  training and assistance to teachers,
administrators, members of district boards of trustees, and members
of site-based decision-making committees;
(5)  assistance specifically designed for a school
district that is considered out of compliance with state or federal
special education requirements, based on the agency's most recent
compliance review of the district's special education programs; and
(6)  assistance in complying with state laws and rules.
SECTION 2.  Subchapter I, Chapter 21, Education Code, is
amended by adding Section 21.4024 to read as follows:
Sec. 21.4024.  SALARY STIPENDS FOR CERTAIN SPECIAL EDUCATION
EMPLOYEES.  (a)  A classroom teacher or full-time paraprofessional
assigned to and certified in special education is entitled to
receive an annual salary stipend in the amount of $1,000 plus $150
for each year of experience in special education, up to a maximum of
(b)  A salary stipend a classroom teacher receives under this
(A)  the regular salary to which the teacher is
entitled under this subchapter; and
(2)  is not considered in determining whether the
district is paying the teacher the minimum monthly salary under
(c)  A salary stipend a paraprofessional receives under this
section is in addition to any local supplement or wages the district
would otherwise pay the paraprofessional during the school year.
SECTION 3.  Chapter 22, Education Code, is amended by adding
Subchapter E to read as follows:
SUBCHAPTER E. RETIRED SPECIAL EDUCATION TEACHER GRANT PROGRAM
Sec. 22.151.  RETIRED SPECIAL EDUCATION TEACHER GRANT
PROGRAM.  (a)  From money appropriated or otherwise available for
the purpose, the commissioner shall establish a grant program to
reimburse school districts and open-enrollment charter schools for
the cost of required contributions under Section 825.4092,
Government Code, for the employment of a retiree hired to teach
special education or provide services related to special education.
(b)  A grant received under the program may only be used for
the cost of required contributions for the employment of a retiree:
(1)  who retired before September 1, 2024; or
(2)  as provided by the General Appropriations Act.
(c)  If the amount of grant requests under the program
exceeds the amount appropriated or otherwise available for the
purpose, the commissioner shall proportionately reduce the amount
SECTION 4.  Section 29.002, Education Code, is amended to
Sec. 29.002.  DEFINITION.  In this subchapter, "special
(1)  special education instruction, which may be
provided by professional and supported by paraprofessional
personnel in a general education setting [the regular classroom] or
in a special education setting, as defined by commissioner rule [an
instructional arrangement described by Section 48.102]; and
(2)  related services, which are developmental,
corrective, supportive, or evaluative services, not instructional
in nature, that may be required for the student to benefit from
special education instruction and for implementation of a student's
individualized education program.
SECTION 5.  Subchapter A, Chapter 29, Education Code, is
amended by adding Section 29.0055 to read as follows:
Sec. 29.0055.  LOCAL INTELLECTUAL AND DEVELOPMENTAL
DISABILITY AUTHORITY INFORMATION.  At the meeting at which a
child's initial individualized education program is developed, the
school district shall provide to the child's parent the contact
information for the local intellectual and developmental
disability authority for the region in which the district is
located for use in discussing services or public benefits that may
provide additional support to the child.
SECTION 6.  Section 29.008, Education Code, is amended by
amending Subsections (a) and (b) and adding Subsection (a-1) to
(a)  The commissioner shall establish a list of approved
public or private facilities, institutions, or agencies inside or
outside of this state that a [A] school district, shared services
arrangement unit, or regional education service center may contract
with [a public or private facility, institution, or agency inside
or outside of this state] for the provision of services to students
with disabilities in a residential placement.  The commissioner may
approve either the whole or a part of a facility or program.
(a-1)  Each contract described by this section [for
residential placement] must be approved by the commissioner.  The
commissioner may approve a [residential placement] contract under
this section only after at least a programmatic evaluation of
personnel qualifications, costs, adequacy of physical plant and
equipment, and curriculum content.  [The commissioner may approve
either the whole or a part of a facility or program.]
(b)  Except as provided by Subsection (c), costs of an
approved contract for residential placement may be paid from a
combination of federal, state, and local funds.  The local share of
the total contract cost for each student is that portion of the
local tax effort that exceeds the district's local fund assignment
under Section 48.256, divided by the average daily attendance in
the district.  If the contract involves a private facility, the
state share of the total contract cost is that amount remaining
after subtracting the local share.  If the contract involves a
public facility, the state share is that amount remaining after
subtracting the local share from the portion of the contract that
involves the costs of instructional and related services.  For
purposes of this subsection, "local tax effort" means the total
amount of money generated by taxes imposed for debt service and
maintenance and operation less any amounts paid into a tax
increment fund under Chapter 311, Tax Code.  This subsection
SECTION 7.  Section 29.014(d), Education Code, is amended to
(d)  The basic allotment for a student enrolled in a district
to which this section applies is adjusted by the tier of intensity
of service defined in accordance with [weight for a homebound
student under] Section 48.102 and designated by commissioner rule
for use under this section [48.102(a)].
SECTION 8.  Section 29.022(u)(3), Education Code, is amended
(3)  "Self-contained classroom" does not include a
classroom that is a resource room as defined by commissioner rule
[instructional arrangement under Section 48.102].
SECTION 9.  Subchapter A, Chapter 29, Education Code, is
amended by adding Section 29.028 to read as follows:
Sec. 29.028.  SUPPORTS FOR RECRUITING SPECIAL EDUCATION
STAFF.  (a)  From money appropriated or otherwise available for the
purpose, the agency shall provide grants to school districts and
open-enrollment charter schools to increase the number of qualified
and appropriately credentialed special education staff, including
special education teachers, special education paraprofessionals,
evaluation personnel, educational interpreters, ancillary
instruction personnel, and related service personnel.
(b)  A school district or open-enrollment charter school
that receives a grant under this section shall require each person
the district or school uses the grant money to assist in becoming
licensed, certified, or otherwise credentialed as described by
Subsection (a) to work at the district or school for a period
established by commissioner rule.
(c)  The commissioner shall adopt rules establishing the
period of required employment described by Subsection (b) and any
other rules necessary to implement this section.
SECTION 10.  Section 29.316(c), Education Code, is amended
(c)  Not later than August 31 of each year, the agency, the
division, and the center jointly shall prepare and post on the
agency's, the division's, and the center's respective Internet
websites a report on the language acquisition of children eight
years of age or younger who are deaf or hard of hearing.  The report
(A)  existing data reported in compliance with
federal law regarding children with disabilities; and
(B)  information relating to the language
acquisition of children who are deaf or hard of hearing and also
(A)  the educational setting [instructional
arrangement] used with the child, as defined by commissioner rule
[described by Section 48.102], including the time the child spends
on average in a general education setting [mainstream instructional
(B)  the specific language acquisition services
provided to the child, including:
(i)  the time spent providing those
(ii)  a description of any hearing
amplification used in the delivery of those services, including:
(a)  the type of hearing amplification
(b)  the period of time in which the
child has had access to the hearing amplification; and
(c)  the average amount of time the
child uses the hearing amplification each day;
(C)  the tools or assessments used to assess the
child's language acquisition and the results obtained;
(D)  the preferred unique communication mode used
(E)  the child's age, race, and gender, the age at
which the child was identified as being deaf or hard of hearing, and
any other relevant demographic information the commissioner
determines to likely be correlated with or have an impact on the
(3)  compare progress in English literacy made by
children who are deaf or hard of hearing to progress in that subject
made by children of the same age who are not deaf or hard of hearing,
(4)  be redacted as necessary to comply with state and
federal law regarding the confidentiality of student medical or
SECTION 11.  Subchapter A, Chapter 48, Education Code, is
amended by adding Section 48.0055 to read as follows:
Sec. 48.0055.  ENROLLMENT-BASED FUNDING.  The commissioner
by rule shall establish the method for determining average
enrollment for purposes of funding provided based on average
enrollment under Chapter 46 and this chapter.
SECTION 12.  Section 48.051(a), Education Code, is amended
(a)  For each student in average daily attendance, not
including the time students spend each day in career and technology
education programs or in special education programs receiving
special education services in a setting [an instructional
arrangement] other than a general education setting [mainstream or
career and technology education programs], for which an additional
allotment is made under Subchapter C, a school district is entitled
to an allotment equal to the lesser of $6,160 or the amount that
results from the following formula:
"A" is the allotment to which a district is entitled;
"TR" is the district's tier one maintenance and operations
tax rate, as provided by Section 45.0032; and
"MCR" is the district's maximum compressed tax rate, as
determined under Section 48.2551.
SECTION 13.  Section 48.102, Education Code, is amended to
Sec. 48.102.  SPECIAL EDUCATION.  (a)  For each student in
average enrollment [daily attendance] in a special education
program under Subchapter A, Chapter 29, [in a mainstream
instructional arrangement,] a school district is entitled to an
annual allotment equal to the basic allotment, or, if applicable,
the sum of the basic allotment and the allotment under Section
48.101 to which the district is entitled, multiplied by the weight
assigned under Subsection (c) to the highest tier of intensity of
service for which the student qualifies [1.15].
(a-1)  Notwithstanding Subsection (a), for the 2026-2027 and
2027-2028 school years, the amount of an allotment under this
section shall be determined in accordance with Section 48.1023.
This subsection expires September 1, 2028.  [For each full-time
equivalent student in average daily attendance in a special
education program under Subchapter A, Chapter 29, in an
instructional arrangement other than a mainstream instructional
arrangement, a district is entitled to an annual allotment equal to
the basic allotment, or, if applicable, the sum of the basic
allotment and the allotment under Section 48.101 to which the
district is entitled, multiplied by a weight determined according
to instructional arrangement as follows:
[Self-contained, mild and moderate, regular campus  3.0
[Self-contained, severe, regular campus  3.0
[Vocational adjustment class  2.3]
(b)  The commissioner by rule shall define seven tiers of
intensity of service for use in determining funding under this
section.  The commissioner must include one tier specifically
addressing students receiving special education services in
residential placement [A special instructional arrangement for
students with disabilities residing in care and treatment
facilities, other than state schools, whose parents or guardians do
not reside in the district providing education services shall be
established by commissioner rule.  The funding weight for this
arrangement shall be 4.0 for those students who receive their
education service on a local school district campus.  A special
instructional arrangement for students with disabilities residing
in state schools shall be established by commissioner rule with a
(c)  The weights assigned to the seven tiers of intensity of
service defined under Subsection (b) are, from least to most
intense, 0.6, 0.85, 1, 1.45, 1.75, 2, and 2, or other weights
provided by appropriation. [For funding purposes, the number of
contact hours credited per day for each student in the off home
campus instructional arrangement may not exceed the contact hours
credited per day for the multidistrict class instructional
arrangement in the 1992-1993 school year.]
(d)  [For funding purposes the contact hours credited per day
for each student in the resource room; self-contained, mild and
moderate; and self-contained, severe, instructional arrangements
may not exceed the average of the statewide total contact hours
credited per day for those three instructional arrangements in the
[(e)  The commissioner by rule shall prescribe the
qualifications an instructional arrangement must meet in order to
be funded as a particular instructional arrangement under this
section.  In prescribing the qualifications that a mainstream
instructional arrangement must meet, the commissioner shall
establish requirements that students with disabilities and their
teachers receive the direct, indirect, and support services that
are necessary to enrich the regular classroom and enable student
[(f)  In this section, "full-time equivalent student" means
30 hours of contact a week between a special education student and
special education program personnel.
[(g)]  The commissioner shall adopt rules and procedures
governing contracts for residential and day program placement of
[special education] students receiving special education services.
(e)  [The legislature shall provide by appropriation for the
state's share of the costs of those placements.
[(h)]  At least 55 percent of the funds allocated under this
section must be used in the special education program under
(f) [(i)]  The agency shall ensure [encourage] the placement
of students in special education programs, including students in
residential placement [instructional arrangements], in the least
restrictive environment appropriate for their educational needs.
(g) [(j)]  A school district that provides an extended year
program required by federal law for special education students who
may regress is entitled to receive funds in an amount equal to 75
percent, or a lesser percentage determined by the commissioner, of
the basic allotment, or, if applicable, the sum of the basic
allotment and the allotment under Section 48.101 to which the
district is entitled for each [full-time equivalent] student in
average enrollment [daily attendance], multiplied by the amount
designated for the highest tier of intensity of service for which
the student qualifies [student's instructional arrangement] under
this section, for each day the program is provided divided by the
number of days in the minimum school year.  The total amount of
state funding for extended year services under this section may not
exceed $20 [$10] million per year.  A school district may use funds
received under this section only in providing an extended year
(h) [(k)]  From the total amount of funds appropriated for
special education under this section, the commissioner shall
withhold an amount specified in the General Appropriations Act, and
distribute that amount to school districts for programs under
Section 29.014.  The program established under that section is
required only in school districts in which the program is financed
by funds distributed under this subsection and any other funds
available for the program.  After deducting the amount withheld
under this subsection from the total amount appropriated for
special education, the commissioner shall reduce each district's
allotment proportionately and shall allocate funds to each district
(i)  Not later than December 1 of each even-numbered year,
the commissioner shall submit to the Legislative Budget Board, for
purposes of the allotment under this section, proposed weights for
the tiers of intensity of service for the next state fiscal
biennium.  The commissioner must include information regarding the
selection of the proposed weights.  In developing the proposed
weights, the commissioner shall consult with school district
superintendents and chief financial officers, the continuing
advisory committee appointed under Section 29.006, and other
SECTION 14.  Subchapter C, Chapter 48, Education Code, is
amended by adding Sections 48.1021, 48.1022, and 48.1023 to read as
Sec. 48.1021.  SPECIAL EDUCATION SERVICE GROUP ALLOTMENT.
(a)  For each six-week period in which a student in a special
education program under Subchapter A, Chapter 29, receives eligible
special education services, a school district is entitled to an
allotment in the amount assigned under Subsection (c) to the
service group for which the student is eligible.
(a-1)  Notwithstanding Subsection (a), for the 2026-2027 and
2027-2028 school years, the amount of an allotment under this
section shall be determined in accordance with Section 48.1023.
This subsection expires September 1, 2028.
(b)  The commissioner by rule shall establish four service
groups for use in determining funding under this section.  In
establishing the groups, the commissioner must consider:
(1)  the level of services, equipment, and technology
required to meet the needs of students receiving special education
(2)  services that meet the needs of students receiving
special education services and were previously eligible for
reimbursement through the school health and related services
(c)  The amounts assigned to the four service groups
established under Subsection (b) are, from lowest to highest level
of service, $100, $350, $650, and $1,000, or other amounts provided
(d)  A school district is entitled to receive an allotment
under this section for each service group for which a student is
(e)  A school district is entitled to the full amount of an
allotment under this section for a student receiving eligible
special education services during any part of a six-week period.
(f)  At least 55 percent of the funds allocated under this
section must be used for a special education program under
(g)  Not later than December 1 of each even-numbered year,
the commissioner shall submit to the Legislative Budget Board, for
purposes of the allotment under this section, proposed amounts of
funding for the service groups for the next state fiscal biennium.
The commissioner must include information regarding the selection
of the proposed amounts.  In developing the proposed amounts, the
commissioner shall consult with school district superintendents
and chief financial officers, the continuing advisory committee
appointed under Section 29.006, and other relevant stakeholders.
Sec. 48.1022.  SPECIAL EDUCATION FULL INDIVIDUAL AND INITIAL
EVALUATION.  For each student for whom a school district conducts a
full individual and initial evaluation under Section 29.004 or 20
U.S.C. Section 1414(a)(1), the district is entitled to an allotment
of $500 or a greater amount provided by appropriation.
Sec. 48.1023.  SPECIAL EDUCATION TRANSITION FUNDING.  (a)
For the 2026-2027 and 2027-2028 school years, the commissioner may
adjust weights or amounts provided under Section 48.102 or 48.1021
as necessary to ensure compliance with requirements regarding
maintenance of state financial support under 20 U.S.C. Section
1412(a)(18) and maintenance of local financial support under
(b)  For the 2026-2027 and 2027-2028 school years, the
commissioner shall determine the formulas through which school
districts receive funding under Sections 48.102 and 48.1021.  In
determining the formulas, the commissioner may combine the methods
of funding under those sections with the method of funding provided
by Section 48.102, as it existed on January 1, 2025.
(c)  For the 2028-2029 school year, the commissioner may
adjust the weights or amounts set for purposes of Section 48.102 or
48.1021.  Before making an adjustment under this subsection, the
(1)  submit the proposed adjustment to the secretary of
state for publication in the Texas Register and must receive notice
(2)  notify in writing and must receive approval from
(d)  Notwithstanding any other provision of this section,
the sum of funding provided under Sections 48.102 and 48.1021 for
the 2026-2027 or for the 2027-2028 school year as adjusted under
this section may not exceed the sum of:
(1)  funding that would have been provided under
Section 48.102, as it existed on January 1, 2025; and
(2)  the amount set by the legislature in the General
(e)  Each school district and open-enrollment charter school
shall report to the agency information necessary to implement this
(f)  The agency shall provide technical assistance to school
districts and open-enrollment charter schools to ensure a
successful transition in funding formulas for special education.
(g)  This section expires September 1, 2030.
SECTION 15.  Sections 48.103(a) and (c), Education Code, are
(a)  Subject to Subsection (b), for each student that a
school district serves who has been identified as having dyslexia
or a related disorder, the district is entitled to an annual
allotment equal to the basic allotment multiplied by 0.5 [0.1] or a
greater amount provided by appropriation.
(c)  A school district may receive funding for a student
under each provision of this section, [and] Section 48.102, and
Section 48.1021 for which [if] the student qualifies [satisfies the
requirements of both sections].
SECTION 16.  Section 48.110(d), Education Code, is amended
(d)  For each annual graduate in a cohort described by
Subsection (b) who demonstrates college, career, or military
readiness as described by Subsection (f) in excess of the minimum
number of students determined for the applicable district cohort
under Subsection (c), a school district is entitled to an annual
(1)  if the annual graduate is educationally
(2)  if the annual graduate is not educationally
(3)  if the annual graduate is enrolled in a special
education program under Subchapter A, Chapter 29, $5,000 [$2,000],
regardless of whether the annual graduate is educationally
SECTION 17.  Section 48.151(g), Education Code, is amended
(g)  A school district or county that provides special
transportation services for eligible [special education] students
receiving special education services is entitled to a state
allocation at a [paid on a previous year's cost-per-mile basis.
The] rate of $2 per mile or a greater amount provided [allowable
shall be set] by appropriation [based on data gathered from the
first year of each preceding biennium].  Districts may use a portion
of their support allocation to pay transportation costs, if
necessary.  The commissioner may grant an amount set by
appropriation for private transportation to reimburse parents or
their agents for transporting eligible special education students.
The mileage allowed shall be computed along the shortest public
road from the student's home to school and back, morning and
afternoon.  The need for this type of transportation shall be
determined on an individual basis and shall be approved only in
SECTION 18.  Subchapter D, Chapter 48, Education Code, is
amended by adding Section 48.157 to read as follows:
Sec. 48.157.  SPECIAL EDUCATION CERTIFICATION ALLOTMENT.
(a)  For each classroom teacher, educational diagnostician,
licensed specialist in school psychology, speech pathologist,
physical therapist, occupational therapist, behavior analyst,
dyslexia therapist, or other special education professional
employed by a school district who, during the preceding year,
became certified under Subchapter B, Chapter 21, to teach special
education or as an educational diagnostician or under the
applicable provision of the Occupations Code, as applicable, the
district is entitled to an allotment in the amount of the employee's
(b)  A school district shall use an allotment received under
this section to provide a stipend in the amount of the allotment to
the employee for whom the district received the allotment.  A
stipend received under this subsection by an employee subject to
the minimum salary schedule under Section 21.402 is not considered
in determining whether the district is paying the employee the
minimum monthly salary under that section.
SECTION 19.  Subchapter F, Chapter 48, Education Code, is
amended by adding Section 48.2522 to read as follows:
Sec. 48.2522.  ADDITIONAL STATE AID FOR SALARY STIPENDS FOR
CERTAIN SPECIAL EDUCATION EMPLOYEES.  A school district, including
a school district that is otherwise ineligible for state aid under
this chapter, is entitled to state aid in an amount equal to the
total amount of salary stipends to which classroom teachers and
paraprofessionals employed by the district are entitled to receive
SECTION 20.  Section 48.265(a), Education Code, is amended
(a)  If [Notwithstanding any other provision of law, if] the
commissioner determines that the amount appropriated for the
purposes of the Foundation School Program exceeds the amount to
which school districts are entitled under this chapter, the
commissioner may provide [by rule shall establish a grant program
through which excess funds are awarded as] grants using the excess
money for the purchase of video equipment, or for the reimbursement
of costs for previously purchased video equipment, used for
monitoring special education classrooms or other special education
settings required under Section 29.022.
SECTION 21.  Section 48.279(e), Education Code, is amended
(e)  After the commissioner has replaced any withheld
federal funds as provided by Subsection (d), the commissioner shall
distribute the remaining amount, if any, of funds described by
Subsection (a) to proportionately increase funding for the special
education allotment under Section 48.102 and the special education
service group allotment under Section 48.1021.
SECTION 22.  Section 825.4092(f), Government Code, is
(f)  A reporting employer is ultimately responsible for
payment of the amounts required to be contributed under Subsections
(b) and (c).  The employer may not directly or indirectly pass that
cost on to the retiree through payroll deduction, by imposition of a
fee, or by any other means designed to recover the cost.  This
subsection does not apply to contributions required for a retiree
employed by a school district or open-enrollment charter school to
SECTION 23.  Section 21.4024, Education Code, as added by
this Act, Subchapter E, Chapter 22, Education Code, as added by this
Act, Chapter 29, Education Code, as amended by this Act, and Section
825.4092(f), Government Code, as amended by this Act, apply
beginning with the 2025-2026 school year.
SECTION 24.  (a)  Except as provided by Subsection (b) of
this section, this Act takes effect immediately if it receives a
vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.
(b)  The amendments by this Act to Chapter 48, Education
Code, take effect September 1, 2025.