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The Texas Education Agency (TEA) released its 2025 Annual Report outlining the agency’s priorities, funding changes, and academic performance trends across Texas public schools. The report provides a statewide overview of public education policy, covering teacher recruitment initiatives, student outcomes, school accountability ratings, and demographic trends affecting the state’s school system.
Texas operates the second-largest public school system in the United States and currently serves more than 5.5 million students. The report highlights how the state is investing in educators, strengthening early literacy and mathematics instruction, expanding career pathways, and addressing challenges such as low-performing schools and the rapid growth of special education enrollment.
Many of the initiatives discussed in the report stem from legislation passed during the 89th Texas Legislature (2025). Texas Policy Research (TPR) previously analyzed those policies in detail in its 89th Legislative Session Policy Brief on School Choice and Education, which examined legislation related to school choice programs, teacher pay initiatives, and accountability reforms. The TEA report provides insight into how those legislative decisions are now being implemented within Texas public schools.
TEA Strategic Plan and Education Policy Priorities
The Texas Education Agency’s strategic plan focuses on preparing every student for success after graduation, whether through college, career training, or military service. One of the central long-term goals is to increase the number of Texans who earn postsecondary credentials. The state aims for at least 60% of Texans to obtain a degree, certificate, or other credential of value by 2030.
The report highlights four primary strategic priorities guiding Texas education policy.
The first priority focuses on recruiting, supporting, and retaining teachers and principals. The agency emphasizes that teacher quality remains the most important in school factor affecting student outcomes. The second priority involves strengthening foundational academic skills through improved reading and mathematics instruction in early grades. The third priority aims to connect high school students to college, career, and military opportunities through expanded career and technical education programs. The fourth priority focuses on improving low-performing schools through targeted intervention strategies and additional funding programs.
Texas School Funding Growth and Public Education Spending
One of the most significant policy developments highlighted in the report is House Bill 2 (HB 2), authored by State Rep. Brad Buckley (R-Salado), a major school finance measure passed during the 89th Texas Legislature.
According to the report, the legislation provides approximately $8.5 billion in additional funding for public education over the biennium and increases annual public education spending by about $4.1 billion beginning in the 2025 to 2026 school year.
The new funding is distributed across several major areas. Teacher and staff compensation programs account for roughly $1.8 billion. School district operational costs receive approximately $659 million. Early literacy and numeracy initiatives receive around $454 million. Special education reforms receive roughly $200 million in additional funding.
Other spending increases include funding for school safety allotments, career and technical education programs, instructional materials, and teacher preparation initiatives.
The report also highlights long-term spending trends. Per student funding in Texas has increased significantly over the past decade. According to the report’s funding chart, annual per student funding reached approximately $16,219 and has increased by more than 50% over the past 11 years.
Texas Public School Enrollment and Student Demographics
Texas public schools currently serve approximately 5.5 million students statewide. The state employs more than 382,000 teachers and educates one of the largest and most diverse student populations in the country.
Demographic trends show that Texas educates the largest number of rural students in the United States. Approximately one in five non-English speaking students in the country attends school in Texas. Around 60% of Texas public school students are classified as economically disadvantaged.
Special education enrollment has also expanded significantly. More than 857,000 students are currently served through special education programs statewide. Despite population growth across Texas, projections suggest that overall public school enrollment may begin to decline slightly in the coming years.
Teacher Recruitment and Teacher Pay Initiatives in Texas
Teacher recruitment and retention remain central priorities in the report. The Texas Education Agency describes a statewide strategy that combines recruitment programs, teacher training initiatives, and expanded compensation opportunities.
House Bill 2 created a new Educator Preparation Allotment expected to total approximately $400 million by the 2029 to 2030 school year. This funding supports teacher recruitment programs, training opportunities, and mentorship initiatives designed to strengthen the teaching pipeline.
Teacher compensation reforms also play a major role in the state’s strategy. The Teacher Incentive Allotment allows high-performing teachers to earn additional pay supplements based on their designation level.
According to the report, teachers designated as Master teachers may receive between $12,000 and $36,000 in additional compensation through the program.
The state also created a Teacher Retention Allotment totaling roughly $1.5 billion for the 2025 to 2026 period to support pay increases and help retain experienced teachers in the classroom.
Early Literacy and Mathematics Instruction in Texas Schools
Improving reading and mathematics proficiency remains a central focus of Texas education policy.
The report highlights the statewide Reading Academies and Mathematics Academies, which provide training for kindergarten through third-grade teachers and principals. These programs focus on research-based instructional practices aligned with Texas academic standards.
Participation in the academies is expected to grow significantly over the coming decade. By 2031, all kindergarten through third-grade teachers and principals are expected to complete the training programs.
The objective is to strengthen foundational academic skills during the earliest years of a student’s education.
Special Education Enrollment Growth in Texas Public Schools
Special education enrollment in Texas has increased significantly over the past several years.
The number of students receiving special education services has grown from about 498,000 students in the 2017 to 2018 school year to more than 857,000 students in the 2024 to 2025 school year. This represents an increase from roughly 9.2% of students to about 15.5 % of the statewide student population receiving special education services. The report notes that more than 178,000 initial special education evaluations were conducted during the 2024 to 2025 school year.
Changes in state law have also expanded eligibility criteria for certain disabilities. For example, dyslexia is now evaluated as a specific learning disability under special education programs, contributing to a substantial increase in students receiving services.
Texas School Accountability Ratings and Assessment Changes
The report also outlines changes to the state’s assessment and accountability systems.
Parents currently access their child’s academic performance through the STAAR testing system and can review detailed results through the TexasAssessment.gov website. However, the report notes that STAAR will eventually be replaced with a new state assessment beginning in the 2027 to 2028 school year.
School accountability ratings have also resumed after legal disputes previously delayed their release. The A through F accountability rating system returned in 2025, and the report indicates that campus performance improved during the most recent rating cycle.
Parents and community members can review school ratings and campus performance through the TXschools.gov website.
National Student Performance Comparison for Texas Schools
The report also compares Texas student performance with national averages using data from the National Assessment of Educational Progress.
Texas ranked 8th in the nation in fourth-grade mathematics. However, the state ranked 37th in fourth-grade reading and 44th in eighth-grade reading. In eighth-grade mathematics, Texas ranked 34th nationally. The report also compares education spending across states. According to the comparison presented, Texas spent about $13,538 per student during the 2020 to 2021 school year (A number that is disputed), while New York spent approximately $32,497 per student.
Despite this difference in spending levels, the report highlights several areas where Texas students perform competitively compared to students in higher spending states.
Texas Policy Research Perspective on Texas Education Policy
While the TEA report emphasizes increased funding and expanded initiatives across the public education system, Texas Policy Research (TPR) has raised concerns about the direction of education policy adopted during the 89th Texas Legislature.
Texas Policy Research opposed both House Bill 2 and Senate Bill 2, which together represent two of the largest education policy changes enacted during the session.
House Bill 2 significantly increased funding for public schools through new spending programs and expanded allotments. Senate Bill 2 established an education savings account program intended to expand school choice options.
Lawmakers described the combination of these policies as the “Texas Two Step.” The concept refers to the state simultaneously increasing funding for the existing government education system while also attempting to introduce competition through a limited school choice program.
Under this framework, the public school system continues to receive substantially more funding than the new school choice program. TPR noted that public schools were given additional funding at roughly an eight-to-one ratio compared to the funding available through the education savings account program.
In addition, the ESA legislation includes hold harmless provisions that protect school districts from losing funding when students leave the system to participate in the program.
From TPR’s perspective, these policies limit the potential for genuine market competition in education because the existing government school system continues to receive increased funding even as school choice programs are introduced.
How the TEA Annual Report Reflects Texas Education Policy
The Texas Education Agency’s 2025 Annual Report provides a comprehensive overview of the state’s public education system and the policy priorities shaping its future.
The report highlights increased public education spending, expanded teacher compensation programs, statewide literacy and mathematics initiatives, and targeted strategies to improve struggling schools. It also provides data on enrollment trends, special education growth, and student performance outcomes.
Many of these initiatives reflect policy decisions made during the 89th Texas Legislature. Texas Policy Research previously examined those legislative developments in its 89th Legislative Session Policy Brief on School Choice and Education, which explored the debate surrounding school funding increases and the adoption of education savings accounts.
The TEA report offers insight into how those policies are now being implemented within Texas public education and how they may influence future education policy discussions across the state.
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