How Texas Public Schools Are Funded

Texas public schools receive funding from three sources: local property taxes collected by school districts, state formula funding distributed through the Foundation School Program, and federal dollars that flow primarily through Title I and other categorical grants. The state formula is notoriously complex and has been the subject of repeated lawsuits arguing that it creates inequitable outcomes for students in low-wealth districts. This guide breaks down how the funding system works, explains the relationship between local property wealth and school resources, and helps Houston parents understand what drives funding levels at their child's school.

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