Student transportation in Texas: FAQ for district transportation leaders
Answers to common questions from Texas transportation directors, with a link to the official source for every answer. Updated October 2026. State rules change, so confirm details with TEA before you act on them.
How does Texas fund school districts and why does attendance matter?
Texas funds districts through the Foundation School Program. The basic allotment is paid per student in average daily attendance (ADA). TEA calculates ADA by adding up the days students attended and dividing by the number of instructional days. House Bill 2 from 2025 kept ADA as the basis for the basic allotment, so daily attendance is a direct input to district funding. A reliable bus ride is one of the ways students get to school on time each day.
Sources: TEA, Texas public school finance overview and TEA, HB 2 implementation letter
Which students qualify for the state transportation allotment?
The allotment covers home-to-school and school-to-home service for regular eligible students who live more than 2 miles from their campus. Districts can also receive limited funding for students who live fewer than 2 miles away in an area designated as hazardous traffic or high risk. Special needs students who require special transportation to attend school also qualify. The allotment is paid at a rate per mile and appears as its own line on the district's state aid report.
Sources: TEA, transportation allotment overview and TEA, school transportation funding
What transportation reports does TEA require and when are they due?
Districts file 2 annual reports in the FSP application, and both are required to receive transportation funding. The Route Services Report covers eligible student services, meaning mileage and ridership. It opens in the first week of June and is due August 1. The Operations Report covers all costs and mileage. It opens in the first week of October and is due December 1. Districts applying for the first time submit a Transportation Allotment Application by July 15.
Source: TEA, school transportation funding
Did House Bill 2 change transportation funding?
Yes, for special transportation. HB 2 raised the state rate for eligible students who receive special transportation as a related service from $1.08 per mile to $1.13 per mile. If your district runs special education routes, accurate mileage for those routes matters, because the rate applies to each eligible mile reported.
Source: TEA, HB 2 implementation letter
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