Texas has one of the nation’s largest and fastest-growing economies, yet its per-student public school funding remains in the bottom 10 nationally. During the 89th Legislative Session, lawmakers approved House Bill 2, providing $8.5 billion in public education funding for the 2025-26 biennium. Despite billions invested during the 89th Legislative Session, school districts still face many challenges, including school closures, staff layoffs, and budget deficits.

To address this, Raise Your Hand Texas proposes the creation of a “Legacy Education Fund,” a new endowment that could broaden funding sources and increase resources for schools across the state.

“We can’t keep waiting for each legislative session to patch the same school funding gaps,” said Bob Popinski, dean of policy for Raise Your Hand Texas. “The ‘Legacy Education Fund’ is about preparing Texas schools for the future—thinking 10 to 20 years ahead, not just the next budget cycle. There will be an estimated $28.5 billion in our Economic Stabilization Fund, also known as the Rainy Day Fund. That money could help seed a new endowment fund to support public education in ways our current funding methods cannot.”

Texas schools are under financial pressure

In Texas classrooms, the effects of underfunding are visible daily. Students face larger class sizes and fewer resources, teachers take on heavier workloads, support staff cover extra duties, and district leaders stretch budgets to cover the essentials. Rising costs, inflation, and new state mandates make the challenge even more difficult.

Despite the Texas Legislature’s recent investment, Texas spends about $3,500 less per student than the national average. The state’s two-year budget cycle adds uncertainty, forcing schools to make long-term commitments without dependable support.

“Districts are constantly stretching resources to cover basic needs,” Popinski said. “Without steady, long-term funding, they’re busy fighting fires and catching up instead of investing in student success.”

The proposed “Legacy Education Fund” aims to address this challenge by providing a reliable, supplemental revenue source.

How the “Legacy Education Fund” would work

The “Legacy Education Fund” could operate as an endowment working alongside the existing Permanent School Fund (PSF). Funded through an initial investment, the fund’s principal would be invested to generate earnings distributed to support education across the state. This creates a self-sustaining revenue source that grows over time, providing schools with financial stability.

Currently, funding sources such as lottery proceeds and the PSF help pay for public education through formulas set by the Texas Legislature. However, neither of these increases the total dollars flowing into classrooms; they determine how schools receive funding, not how much funding they receive.

“The ‘Legacy Education Fund’ is about adding new dollars to the system, not just moving the same money,” Popinski said. “It would provide schools with additional funding on top of what they already receive. The goal isn’t to replace existing support but to strengthen it, giving districts a more stable and predictable foundation.”

Benefits for schools

The “Legacy Education Fund” would give Texas schools more than funding. It would provide Texas with:

• Durability: guarantees future funding regardless of the political or economic climate
• Diversified funding streams: introduces reliable funding sources beyond current school funding
• Stability: allows districts to make long-term decisions without worrying about the uncertainty in two-year state budgets
• Competitive investment: fuels economic growth, promotes healthier communities, enhances quality of life, and sets Texas on the path to match other states’ investments in public school students
• Legacy: establishes an endowment as a permanent promise to Texas kids and the down payment on a quality education

Other states, including Alabama, Colorado, Mississippi, and Connecticut, have established public education endowments funded by general revenue and private contributions. These funds effectively support various school needs—from core expenses to programs, technology, and facility improvements—showing the potential impact a similar approach could have in Texas.

It’s time for lawmakers to take action

During the 90th Legislative Session, legislators have the opportunity to create a different type of permanent, growing funding source that could transform public schools for decades.

If lawmakers take action during the next legislative session, Texas could move beyond short-term fixes and provide districts with a stable, predictable foundation to meet current and future needs.

"The ‘Legacy Education Fund’ will ensure that this is an investment that leads to a better tomorrow and better opportunities in the future,” said Andrea Ramirez, former middle school teacher and San Antonio Raise Your Hand Texas advocacy team member. “We have an opportunity to establish a legacy for our communities and be a part of something bigger. It’s a chance to give every student the stability, resources and support they need to truly thrive and succeed”

The fund’s implementation—initial investment, ongoing contributions, and governance—will shape the long-term impact on Texas schools. Decisions made during the 90th Legislative Session, which is set to begin in January 2027, could establish a new direction for funding Texas public education.

To stay informed on the “Legacy Education Fund,” sign up for Raise Your Hand Texas’ Across the Lawn newsletter or visit www.raiseyourhandtexas.org.

The above story was produced by Community Impact's Multi Platform Journalist Chloe Chapel, with information solely provided by the local business as part of its "sponsored content" purchase through our advertising team.