House Bill 3 86(R)

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.

For the latest updates follow us on Twitter @teainfo or on Facebook.

View the transcript of House Bill 3 Overview video

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.

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.

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.

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:

View HB 3 in 30 Videos

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.

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