The bill, H.B. No. 184, proposes an amendment to the Education Code by adding Section 48.2554, which establishes a new maximum compressed tax rate for school districts for the 2026-2027 school year. This section mandates that the commissioner calculate each district's maximum compressed tax rate by reducing the rate determined under existing sections (48.2551 or 48.2552(b)) using funds appropriated specifically for this purpose. Additionally, if a district's calculated rate falls below 90% of another district's rate, it will be adjusted to match that threshold. The bill also clarifies that references to maximum compressed tax rates in various legal provisions will now refer to the rates determined under this new section.

Furthermore, the bill appropriates federal funds received under the One Big Beautiful Bill Act to the Texas Education Agency for the fiscal year starting September 1, 2026, specifically to support the reduction of school district maximum compressed tax rates as outlined in the new section. The provisions of this section will expire on September 1, 2028, and the bill is set to take effect 91 days after the conclusion of the legislative session.

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