Billions flow into Texas from lottery sales each year, supporting schools and assistance programs. But how much of the lottery’s income funds these programs?
The Texas Lottery contributed $1.77 billion to the Foundation School Fund in fiscal year 2025, according to a news release from the agency.
Funds directed to the Foundation School Fund help pay for teacher salaries, classroom technology, special and bilingual education, facility improvements and extracurricular programs, according to the Texas Education Agency.
The Fund for Veterans’ Assistance also received a record $31.1 million, which helps fund programs that provide financial aid, housing assistance, counseling and other support services for Texas veterans and their families.
The Education Lab
“The 2025 fiscal year was a challenging one for the Texas Lottery, but it once again contributed critical revenue for the State of Texas,” said Courtney Arbour, executive director of the Texas Department of Licensing and Regulation, which now oversees the lottery. “More than $1.8 billion was directed to education and veterans.”
Historical impact
Since its creation in 1992, the Texas Lottery has provided $35.5 billion for public education and nearly $280 million for veterans’ programs, according to the agency. Annual contributions have generally grown faster than inflation.
When the lottery was established, some lawmakers framed it as a significant boost for school funding, while others said it would play a minor role.
Over time, the idea that lottery proceeds could cover a large share of Texas’ education budget has persisted, though it represents only a small portion of total funding.
How much does it cover?
The lottery now provides about $1.7 billion annually to Texas schools — roughly five days of a 180-day academic year, the agency said. That’s down from more than 10 days’ worth of funding in the lottery’s early years.