H.B. No. 74 proposes a pay raise for state employees in Texas for the fiscal biennium beginning September 1, 2025. The bill stipulates that each full-time employee of a state agency, including institutions of higher education, will receive a gross annual salary increase of $10,000 for each fiscal year of the biennium. Part-time employees will receive a proportional increase based on the ratio of their working hours to that of a full-time employee, calculated against the $10,000 figure.

However, the bill specifies that this pay raise does not apply to members of the legislature or members of boards, commissions, or other governing bodies of state agencies, including institutions of higher education, who are not eligible for a salary but may receive per diem or expense reimbursements. The act is set to take effect 91 days after the conclusion of the legislative session.