The Texas philanthropic sector invests a generous $1 billion annually in education initiatives across the state. In 2025, Texas will steward $38.1 billion of state and federal funding. Private money alone cannot sustain Texas’s education system. For maximum impact, philanthropic sector investments must be strategically paired with public funding.

Education is an Investment

With a limited budget, it’s essential to carefully prioritize where dollars will yield the best outcomes for Texas students, teachers, and communities. When policymakers and grantmakers join forces, they can take a mixed funding approach to ensure effective distribution of operating and targeted investments.

When we invest in quality, certified teachers, we know that more children will achieve foundational skills, resulting in more students graduating high school and continuing through postsecondary credential completion. As the economy shifts and jobs require postsecondary certifications, we must invest wisely today to ensure economic stability for Texas families and our economy tomorrow.

Where We’re Headed

Funding strategies to meet the varied needs of Texas schools requires that we:

• Invest in students and teachers through increases in the Basic Allotment and strategic weights in current law. Reach targeted populations and expand impact by: increasing the Teacher Incentive Allotment (TIA), Teacher Mentor Allotment and Compensatory Education Allotment, adjusting the Early Education Allotment to Pre-K 3 & 4 students, and creating the Teacher Residency Allotment.
• Continue progress made possible by HB 8 (community college finance, 88R), invest in programs such as FAST, R-PEP, P-TECH, etc., and increase incentives for completion of postsecondary credentials tied to family-sustaining wage outcomes.