Relating to an annual adjustment to the basic allotment under the Foundation School Program to reflect inflation.

HB 351 requires annual adjustments to Texas public school funding under the Foundation School Program to keep pace with inflation. Starting in the 2026-2027 school year, the basic allotment per student will increase each year by either 3% or the Consumer Price Index (CPI) rate - whichever is lower - with negative inflation rates treated as zero. This change directly affects all Texas school districts receiving state funding through the Foundation School Program. The adjustment mechanism ensures funding grows with inflation while allowing the legislature to set a lower annual increase in the budget process, provided it remains at or above the current funding level.