Relating to a reduction in the maximum compressed tax rate of a school district; making an appropriation.

HB 142 reduces the maximum tax rate school districts can levy for the 2026-2027 school year by directing $200 million in federal border security funds to the Texas Education Agency. It requires the commissioner to calculate each district's current maximum tax rate and reduce it equally using these funds, while ensuring no district's rate falls below 90% of another district's rate. This change directly affects all Texas public school districts by lowering their allowable tax rates for that school year. The bill updates how school funding formulas reference these tax rates, ensuring the reduction is reflected in calculations for state funding. The appropriation expires September 1, 2028.