Relating to a credit against required recapture payments for certain school districts for the cost of windstorm and hail insurance under the public school finance system.

SB 1635 creates a credit for certain Texas school districts against required payments under the public school finance system. It applies only to districts in first or second tier coastal counties (as defined in Texas Insurance Code) that paid for windstorm and hail insurance in the previous school year. The bill reduces the district's required payment amount by the exact cost of that insurance. This credit is applied after other existing reductions and takes effect September 1, 2025. The policy directly benefits coastal school districts facing significant storm insurance costs.