HB 289 amends Section 48.257 of the Texas Education Code, adjusting the requirements for specific school districts to reduce their local revenue levels. This bill specifically applies to districts that adopted a maintenance and operations (M&O) tax rate for the 2024-2025 school year equal to or greater than their maximum compressed tax rate plus six cents. Under HB 289, if a qualifying district's Tier 1 revenue level reduction would result in lower per-student M&O revenue than it had in the 2025-2026 school year, the Texas Education Agency (TEA) is required to adjust the reduction. This adjustment would ensure the district maintains per-student funding at least equivalent to its 2025-2026 level, thus mitigating potential revenue losses due to the local revenue cap​.