Oklahoma Senate leaders propose $254 million plan for literacy initiatives, teacher pay raises, and tax credit expansion

Plan targets reading outcomes, teacher compensation and coaching capacity

Oklahoma Senate Republican leaders on Tuesday, Feb. 24, 2026, outlined a $254 million education proposal that would increase teacher pay and expand literacy and math supports for schools, while changing how much extra state money is directed to the Oklahoma Teacher Retirement System (TRS). The plan was presented at the state Capitol as lawmakers continue debating how to respond to Oklahoma’s low reading performance among elementary students.

The proposal would be funded by capping an additional TRS appropriation known as an “apportionment” at $200 million. Senate leaders said shifting money from the apportionment would not reduce promised retirement benefits, but would slow the pension system’s timeline toward full funding. They also said the plan is designed to be revenue-neutral during a year described as budget-tight.

Largest single cost: $2,500 raise for all public school teachers

The largest line item is $117 million to provide an across-the-board $2,500 salary increase for public school teachers. The plan also includes $4.5 million to double scholarship funding intended for future teachers, tying recruitment and preparation to literacy goals and teacher training aligned with the “science of reading.”

In addition, Senate leaders proposed $29.8 million in added funding through the state aid formula used to support district operations. They said the increase could help districts add staff or address local needs.

• $117 million for teacher pay raises (planned as $2,500 per teacher)
• $50 million to expand the Strong Readers Act fund
• $10 million to expand literacy coaching support
• $10 million to establish math coaching support
• $7.7 million for books and reading materials, including $5 million tied to statewide expansion of Dolly Parton’s Imagination Library
• $4.5 million to increase teacher scholarship funding
• $29.8 million in additional formula funding for public schools

Reading performance data cited as urgency

State testing results for 2025 were cited in the Senate announcement, indicating that 26% of public school students scored on grade level in English language arts. Senate leaders framed the proposal as an effort to scale summer academies, tutoring and training that districts can use to strengthen early literacy instruction.

Senate leaders said redirecting money from the pension apportionment would not change teacher retirement benefits, but would extend the timeline to reach full funding.

Private school tax credit cap would rise by $25 million

The plan also includes a $25 million increase to the Parental Choice Tax Credit Program cap, raising the maximum annual amount from $250 million to $275 million. The program’s available credits were reported as nearly fully claimed for the 2025-26 school year. Senate leaders said a higher cap would prevent eligible students from being turned away if demand again reaches the limit next year.

Senate Democrats said they support investments in teachers and literacy instruction but raised concerns about funding the package by limiting TRS contributions and about expanding a private school tax credit program without requiring participating private school students to take the same state tests used in public schools.

The proposal is expected to be part of ongoing negotiations with the Oklahoma House of Representatives and the governor’s office as budget deliberations continue.