TX HB4040

Prohibits Texas school districts from engaging in diversity, equity, and inclusion (DEI) practices, defined as influencing hiring based on race/sex/ethnicity, promoting differential treatment by race, developing policies referencing race/gender identity/sexual orientation, or requiring DEI statements

Requires school districts to promote a "colorblind meritocracy" and bars them from using state or local funds for DEI programs, contracting with DEI vendors, promoting race-favoring events, providing DEI training, hosting field trips with "racially exclusive rhetoric," or funding student organizations that exclude by race

Prohibits school boards from adopting DEI-supportive policies and bars board members and employees from attending conferences promoting DEI practices in their official capacity

Bans the use of restorative justice practices in school discipline and removes restorative justice from approved behavior management strategies and school safety funding provisions

Authorizes penalties for violations including loss of state funding for the following fiscal year and administrative penalties up to $1,000,000, with enforcement authority granted to the Commissioner of Education and Attorney General; applies beginning with the 2025-2026 school year