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OregonHB 21402025 Regular SessionHouseWALLET

Relating to funding of the State School Fund; and declaring an emergency.

Sponsored By: Sponsor information unavailable

Became Law

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 7 benefits, 0 costs, 3 mixed.

More support for students with disabilities

Beginning July 1, 2025, the Department of Education sends $55 million each year to the High Cost Disabilities Account. It also pays what is needed each year for students in pediatric nursing facilities. The Department may spend up to $150,000 every two years to run a program that increases speech‑language pathologists and assistants.

Funding for safer, healthier school buildings

Beginning July 1, 2025, the Department of Education may spend up to $10 million every two years for school facilities work. It may also spend up to $3 million every two years to support schools before, during, or after threats and hazards. Another $2 million every two years goes to grants that test school drinking and food‑prep water for lead.

More money for English learner programs

Beginning July 1, 2025, the Department of Education sends $12.5 million every two years to the statewide English learner program account. The money supports English language services for students.

State School Fund setup and budgeting

Beginning July 1, 2025, the law creates a State School Fund inside the General Fund. The Department of Education can use it for listed K–12 purposes without new yearly approvals and may accept gifts and grants into the fund. The fund draws money from legislative appropriations and named education accounts. State budget offices must work with the Department of Education to project school fund costs, using the second year of the current biennium and counting projected local revenue.

Educator fund with school funding offsets

Beginning July 1, 2025, the Department of Education sends $39.5 million every two years to the Educator Advancement Fund. To pay this, the law reduces total State School Fund distributions by $6 million, district distributions by $16.75 million, and ESD distributions by $16.75 million. These amounts are adjusted each biennium by the same percentage the Governor directs for special payments.

New rules for school funding payouts

Starting with 2025–26 distributions, each district’s grant equals the general purpose, transportation, and high‑cost disabilities grants, minus local revenue. The Department of Education uses same‑year estimates and student counts as of June of the payout year. It pays 49% of general purpose and transportation amounts in year one of the biennium and 51% in year two. Education service districts are paid under the existing state formula. If a public charter school closes, the sponsor district gets a one‑year payment equal to its general purpose grant per extended ADMw times 5% of the charter’s prior‑year ADM.

Extra help for very small districts

Beginning July 1, 2025, the Department of Education sends $2.5 million each year to the Small School District Supplement Fund. This adds steady support for very small districts.

Funding for at-risk youth education

Beginning July 1, 2025, the Department of Education pays any remaining education costs for students in Oregon Military Department at‑risk youth programs after state and federal funds are used. The transfer happens every two years and covers only the unpaid balance.

Funding for free menstrual products

Beginning July 1, 2025, the Department of Education may transfer up to $5.595 million every two years to provide tampons and sanitary pads in schools. This reduces out‑of‑pocket costs for students and families.

Contract reduces ESD payments dollar for dollar

Beginning July 1, 2025, the Department of Education may spend up to $550,000 each year on a specified contract. Payments to education service districts that year drop by the same amount spent on the contract.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 125 • No: 3

Senate vote • 6/17/2025

Third reading. Carried by Weber. Passed.

Yes: 30 • No: 0

House vote • 6/5/2025

Third reading. Carried by McLain. Passed.

Yes: 50 • No: 1

legislature vote • 5/30/2025

Ways and Means: Heard and Reported Out

Yes: 38 • No: 2

House vote • 2/3/2025

Education: Heard and Reported Out

Yes: 7 • No: 0

Actions Timeline

  1. Chapter 435, (2025 Laws): Effective date July 1, 2025.

    7/25/2025House

  2. Governor signed.

    6/26/2025House

  3. President signed.

    6/18/2025Senate

  4. Speaker signed.

    6/18/2025House

  5. Third reading. Carried by Weber. Passed.

    6/17/2025Senate

  6. Carried over to 06-17 by unanimous consent.

    6/16/2025Senate

  7. Carried over to 06-16 by unanimous consent.

    6/12/2025Senate

  8. Carried over to 06-12 by unanimous consent.

    6/11/2025Senate

  9. Second reading.

    6/10/2025Senate

  10. Recommendation: Do pass.

    6/10/2025Senate

  11. Referred to Ways and Means.

    6/9/2025Senate

  12. First reading. Referred to President's desk.

    6/9/2025Senate

  13. Third reading. Carried by McLain. Passed.

    6/5/2025House

  14. Second reading.

    6/4/2025House

  15. Recommendation: Do pass.

    6/3/2025House

  16. Work Session held.

    5/30/2025House

  17. Returned to Full Committee.

    5/28/2025House

  18. Work Session held.

    5/28/2025House

  19. Assigned to Subcommittee On Education.

    5/24/2025House

  20. Referred to Ways and Means by order of Speaker.

    2/5/2025House

  21. Recommendation: Do pass and be referred to Ways and Means.

    2/5/2025House

  22. Work Session held.

    2/3/2025House

  23. Public Hearing held.

    1/27/2025House

  24. Referred to Education.

    1/17/2025House

  25. First reading. Referred to Speaker's desk.

    1/13/2025House

Bill Text

  • Enrolled

    6/17/2025

    PDF

  • Introduced

    1/10/2025

    PDF

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