TX HB351

Increases the basic allotment under the Foundation School Program from $6,160 to $7,160 per student in average daily attendance, effective September 1, 2025

Establishes an automatic annual inflation adjustment beginning with the 2026-2027 school year, increasing the basic allotment by the lesser of 3% or the Consumer Price Index for All Urban Consumers

Prevents decreases to the allotment during periods of deflation by treating negative inflation rates as zero

Allows the legislature through the General Appropriations Act to provide a smaller increase than the calculated inflation adjustment, but not below the base allotment amount

Updates the guaranteed yield formulas for tier two funding to reference the new $7,160 basic allotment and the inflation adjustment provisions