TX HB2435

Increases the basic allotment per student in average daily attendance under the Foundation School Program from $6,160 to $8,947

Establishes automatic annual inflation adjustments to the basic allotment beginning with the 2026-2027 school year, based on the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics

Prevents reductions to the basic allotment during periods of deflation by setting a floor of zero percent for any negative inflation rate

Updates the guaranteed yield formula for tier two funding to reference the adjusted basic allotment amount rather than the fixed $6,160 figure, ensuring the guaranteed level of state and local funds per weighted student also reflects inflation adjustments

Takes effect September 1, 2025