House Bill 3

House Bill 3 signing

budget icon blue Budgeting Resources

interest  icon blue Topics of Interest

video icon blue HB 3 in 30correspondence 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)
    diamond bullet point State Aid Excel Tool (Excel) New

     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.

    diamond bullet point Budget Planning for Teacher Compensation  (Video)

    diamond bullet point Tax Rate Changes (Video) 

    diamond bullet point State Compensatory Education (SCE) Program (Video) 
    diamond bullet point Prekindergarten (Video) 
    diamond bullet point Recapture (Video) 
    diamond bullet point Current Year Values (Video) 
    diamond bullet point College, Career, or Military Readiness Outcomes Bonus and Exam Reimbursements (Video) 
    diamond bullet point Do Not Hire Registry (Video) New



    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 Schedule of Topics
    diamond bullet point Frequently Asked Questions 
      diamond bullet point Teacher Retirement System (TRS) Information -  HB 3 and Creditable Compensation 
       diamond bullet point Master Teacher Update 


          HB 3 Guidance and Correspondence
          08/15/2019Changes to Reporting Requirements and Creation of the Registry of Persons Ineligible to Work in Public SchoolsEducator & System Support
          08/08/2019 House Bill 3 (HB 3) Implementation: College, Career, or Military Readiness SectionsCollege, Career, and Military Preparation
          08/01/2019 House Bill 3 (HB 3) Implementation: Current year valuesState Funding
          7/25/2019Recapture Formula Changes and Reductions Under House Bill 3 (HB 3)School Finance
          7/18/2019House Bill 3 Pre-KEarly Childhood Education
          7/12/2019House Bill 3 (HB3) Implementation: State Compensatory Education (SCE) Allotment and the SCE Advisory CommitteeFinancial Compliance
          6/24/2019TEA Information Resources on House Bill (HB) 3Commissioner
          6/11/2019Minimum Salary Schedule Increase pursuant to House Bill 3 (HB 3)School Finance
          6/11/2019House Bill 3 (HB 3) Implementation: Salary IncreasesState Funding
          6/11/2019House Bill 3 (HB 3) Implementation: Tax rate compressionState Funding