House Bill 3

House Bill 3 signing

budget icon blue Budgeting Resources

interest  icon blue Topics of Interest

video icon blue HB 3 in 30 correspondence icon blue Guidance and Correspondence

What is House Bill 3?

House Bill (HB 3) 3, a sweeping and historic school finance bill was passed by the 86th Texas Legislature in 2019 and signed by Gov. Greg Abbott. The bill provides more money for Texas classrooms, increases teacher compensation, reduces recapture and cuts local property taxes for Texas taxpayers. HB 3 is one of the most transformative Texas education bills in recent history. The bill is the result of months of work beginning with the Texas Commission on Public School Finance and culminating in bipartisan work between the members of the Texas House and Senate.


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Information on how the changes from House Bill 3 to the Texas education code and other Texas statutes will affect Texas public schools is listed below. As more information becomes available it will be shared with Texas school systems and posted here.

diamond bullet point Texas Commission on Public School Finance Final Report (PDF)

diamond bullet point House Bill 3: Bill Text (PDF)

diamond bullet point House Bill 3: Fiscal Note (PDF)

HB 3 High-Level Overview

The Texas Education Agency will be releasing resources that explain House Bill 3 at a very high level so that the public at-large can better understand the different components of the law and what guidance they can expect from the agency over the next few weeks and months. Make sure to check this section for new resources as they are released.

diamond bullet point HB 3 Overview (PDF) 
diamond bullet point HB 3 Bill Summary (PDF)
diamond bullet point HB 3 2-Pager (PDF) 

Budgeting Resources

For guidance on HB 3 budget implications, please refer to the below runs from the Legislative Budget Board (LBB) for M&O revenue comparisons for schools districts between current law and the HB 3 Conference Committee Report. Also included is a State Aid excel template for districts that will be coming soon. For purposes of calculating the 30 percent compensation increase requirement, it is important to note that the “change in total M&O revenue” amounts in the files below should not be used as a proxy for the gain amount, as these files compare FY2020 old law vs. current law, instead of comparing current law FY2020 to old law FY2019.

    diamond bullet point Legislative Budget Board (LBB) Runs FY 20 (PDF) 
    diamond bullet point Legislative Budget Board (LBB) Runs FY 21 (PDF) 
    diamond bullet point TEA Charter State Aid Excel Tool (Excel)

    HB 3 in 30 Video Series

    To support communications on House Bill 3, TEA staff will be releasing a video web series that seeks to provide more information on HB 3. These presentations will be posted every Thursday. Visit the series page to view them:


    HB 3 Topics of Interest

    Due to its sweeping and historic nature, House Bill 3 touches on many different aspects of education in Texas and impacts everything from recapture to Pre-K funding to Special Education and transportation. Because of the sheer number of topics to cover and provide guidance on, the agency will be releasing information week by week over the summer starting with a schedule of topics and a list of frequently asked questions. Please make sure to refer back to this section as updates and additional information are posted.

    diamond bullet point 2019 STAAR Study Report Part I (posted 12/02/19)
    diamond bullet point Schedule of Topics
    diamond bullet point Frequently Asked Questions
    diamond bullet point House Bill 3 Rulemaking Schedule 
      diamond bullet point Teacher Retirement System (TRS) Information -  HB 3 and Creditable Compensation 
      diamond bullet point Master Teacher Update 

      diamond bullet point Residential Facility Data Reporting and Funding  

      diamond bullet point HB 3 Teacher Compensation Report

      diamond bullet point HB 3 Compensation Report


          Advisory Committees

          The 86th Texas Legislature passed House Bill 3 and House Bill 3906, which requires the formation of five advisory committees to support public education

          HB 3 Guidance and Correspondence

          Date Title Division
          01/09/2020 House Bill 3 (HB 3) Implementation: 2020 Tax Rate Changes School Finance
          12/12/2019 House Bill 3 (HB 3): Teacher Incentive Allotment Letter of Intent Educator Support
          11/21/2019 House Bill 3 (HB 3) Implementation: K-2 Diagnostics School Programs
          11/14/2019 House Bill 3 (HB 3) Implementation: Financial Aid Application School Programs
          11/07/2019 House Bill 3 (HB 3) Implementation: Transportation Funding School Finance
          10/17/2019 House Bill 3 (HB 3) Implementation: Additional Days School Year School Programs
          10/17/2019 House Bill 3 (HB 3) Implementation: Reading Advisory Committee School Programs
          10/10/2019 House Bill 3 (HB 3) Implementation: Blended Learning Grant Program Special Populations
          10/03/2019 House Bill 3 (HB 3) Implementation: Teacher Incentive Allotment Educator Systems and Support
          10/03/2019 House Bill 3 (HB 3) Implementation: Teacher Appraisal survey Educator Systems and Support
          09/26/2019 House Bill 3 (HB 3) Implementation: Update on Changes to the Bilingual Education Allotment Special Populations
          09/19/2019 House Bill 3 (HB 3) Implementation: Early Childhood and CCMR Board Adopted Plans and Goals Governance
          09/12/2019 House Bill 3 (HB 3) Implementation: Reading Practices School Programs
          09/05/2019 House Bill 3 (HB 3) Implementation of the Special Education and Dyslexia Allotment and Senate Bill 2075 Monitoring Special Populations
          08/29/2019 House Bill 3 (HB 3) Implementation: Gifted/Talented Education Certification and Funding  Special Populations
          08/29/2019 House Bill 3 (HB 3) Implementation: Charter School Funding  School Finance
          08/22/2019 House Bill 3 (HB 3) Implementation: College, Career, or Military Readiness CTE, Incentives for High School Models, and High School Equivalency College, Career, and Military Preparation 
          08/22/2019 House Bill (HB 3) Implementation: Small and Mid-sized District Allotment  State Funding
          08/15/2019 Changes to Reporting Requirements and Creation of the Registry of Persons Ineligible to Work in Public Schools Educator & System Support
          08/15/2019 Updates to Program Intent Codes Financial Compliance
          08/08/2019  House Bill 3 (HB 3) Implementation: College, Career, or Military Readiness Sections College, Career, and Military Preparation
          08/01/2019  House Bill 3 (HB 3) Implementation: Current year values State Funding
          7/25/2019 Recapture Formula Changes and Reductions Under House Bill 3 (HB 3) School Finance
          7/18/2019 House Bill 3 Pre-K Early Childhood Education
          7/12/2019 House Bill 3 (HB3) Implementation: State Compensatory Education (SCE) Allotment and the SCE Advisory Committee Financial Compliance
          6/24/2019 TEA Information Resources on House Bill (HB) 3 Commissioner
          6/11/2019 Minimum Salary Schedule Increase pursuant to House Bill 3 (HB 3) School Finance
          6/11/2019 House Bill 3 (HB 3) Implementation: Salary Increases State Funding
          6/11/2019 House Bill 3 (HB 3) Implementation: Tax rate compression State Funding
          Contact Information

          For questions regarding House Bill 3 and its implementation, please email