Oklahoma Education Plan: 4M for Raises & Classroom Funding from TRS Savings

Oklahoma Education Plan: $254M for Raises & Classroom Funding from TRS Savings

February 25, 2026 Ahmed Hassan - World News Editor News

Oklahoma State Senate leaders have unveiled a plan to redirect existing state funds towards education, including teacher pay raises and classroom initiatives, following the long-term stabilization of the Teachers’ Retirement System (TRS). The proposal, announced on Tuesday, aims to inject $254 million into the state’s education system without resorting to new taxes or increased spending.

For over two decades, the Oklahoma legislature has invested more than $7 billion in strengthening the TRS, which now boasts assets exceeding $25 billion. Officials state the system is now financially secure, allowing for a re-evaluation of state contributions.

The plan proposes capping annual state contributions to the TRS at $200 million in Fiscal Year 2027, despite projections indicating they could reach $454 million. The difference – approximately $254 million – would then be redirected to bolster education programs.

“This plan protects the retirement system while allowing us to meet urgent needs in our classrooms today,” said Senate Education Chairman Adam Pugh, R-Edmond. “After years of responsible investment, TRS is strong. Although this is not a magic bullet, this is a bold plan to improve education outcomes sooner than later.”

In 2025, the TRS disbursed approximately $1.7 billion in benefits to retired educators, underscoring the system’s significant role in providing financial security for Oklahoma’s teaching workforce.

Senate Appropriations Chairman Chuck Hall, R-Perry, emphasized the historical context of the plan. “The Legislature spent more than two decades investing over $7 billion in the Teachers’ Retirement System when the pension fund was at a crisis point,” Hall stated. “Now that we’ve stabilized the system, it’s time to address the state’s education crisis.” He added that the proposal redirects excess funding without increasing the overall state budget, asserting, “We’re increasing our support of public schools because we know that when we invest in education, we create a brighter future for Oklahoma.”

Investment Package Funding Breakdown

The proposed $254 million investment package is allocated as follows:

  • $117 million for a $2,500 across-the-board teacher pay raise
  • $50 million for the Reading Sufficiency Act
  • $29.8 million in additional formula funding
  • $10 million for literacy coaches
  • $10 million for math coaches

These investments are intended to strengthen classroom instruction and improve student performance across the state.

Opposition from Democratic Lawmakers

The proposal has faced criticism from Democratic lawmakers, who argue it lacks a comprehensive, long-term strategy for improving Oklahoma’s education system. Senate Democratic Leader Julia Kirt, D-Oklahoma City, acknowledged the positive aspects of the plan but expressed concerns about its overall coherence. “It’s good to see the majority party prioritize reading, teacher salaries, and getting more teachers in the pipeline,” Kirt said. “These are disjointed initiatives, not a long-term plan for student success.”

Democratic legislators have also raised concerns about the allocation of taxpayer funds to private schools, calling for a commitment to prioritize public education. Senator Carri Hicks, D-Oklahoma City, stated, “This package raises the amount of public dollars going to the private school voucher scheme to $275 million dollars. Public dollars belong in public schools with public transparency and legislative oversight.”

Senator Mark Mann, D-Oklahoma City, warned that the proposal could potentially jeopardize retirement benefits for educators. “The Republican proposal would be paid for by lowering the state’s investment in the Teachers’ Retirement System,” Mann cautioned. “We are confident this will put a COLA (cost-of-living adjustment) for retired educators at risk.”

Next Steps

The funding proposal will be debated in upcoming legislative sessions. Any plan approved by the Oklahoma Senate will also require the approval of the Oklahoma House of Representatives. House Appropriations and Budget Chairman Trey Caldwell, R-Faxon, indicated the House will carefully review the proposal. “We look forward to working with the Senate through our normal budget process as we determine our education priorities and how to best move Oklahoma forward,” Caldwell said in a statement. He also expressed concerns about any potential negative impact on the TRS, stating, “The House has consistently supported commonsense retirement reforms to help experienced teachers return to the classroom, which the Senate has repeatedly rejected. We want to see the full details of Senator Pugh’s plan as we work to strengthen our schools without compromising our educators’ long-term stability.”

The debate over the future of Oklahoma’s education funding is expected to continue as lawmakers weigh the benefits of increased investment in classrooms against the need to maintain the financial stability of the Teachers’ Retirement System.