Houston ISD is projected to lose 4,000 students next year, which the superintendent expects will result in a $50 million funding cut.
Teachers with one to two years of experience would receive a raise of about 3%, while teachers with at least three years of experience would receive an average raise of 7%.
Gov. Greg Abbott has already said he intends to sign the bill, which will give schools funding for salary increases, special education, teacher preparation, and operational costs.
"This is going to be, this potentially has the opportunity to be, the best session and maybe legislative history," Lt. Governor Dan Patrick said.
Texas will give participating families about $10,000 to pay for their kids' private schooling. Other details about the program, set to launch in 2026, are unclear.
New Caney ISD said full-time employees returning for the 2025-26 school year will receive a $1,000 retention incentive on their May 5 paycheck.