Texas Higher Education Coordinating Board Budget Process

The Texas Higher Education Coordinating Board Budget Process has been laid out in two separate sections addressing the agency’s Budget Hearing and Legislative Appropriations Request. The overview of both the budget hearing report and the LAR offers similar information regarding the agency’s Exceptional Items Request. Conversely, the budget hearing did not cover information regarding any riders seen in the LAR.

 

Texas Higher Education Coordinating Board Budget Hearing Report

The Legislative Budget Board budget hearing of THECB was held on September 25, 2024. The following provides an overview, and a video archive of the hearing can be found here.

This report is intended to give you an overview and highlight the various topics taken up. It is not a verbatim transcript of the discussions but is based upon what was audible or understandable to the observer. 

Item 1: Texas Higher Education Coordinating Board Budget Hearing

Sarah Keyton, Interim Commissioner, THECB

• Texas has experienced tremendous economic growth; consistently leads nation in job creation with 8^th largest economy in the world; continual need for skilled workers, talent pipelines, robust ecosystems
• In 2022, coordinating board updated state’s strategic plan for higher education; this plan called “Building a Talent Strong Texas,” is centered on enhancing values for Texas students; with 3 strategic goals; plan emphasizes we must strengthen partnerships across institutions and systems and with employers
• 88^th Legislature delivered historic investments in higher education in 3 key areas: community college finance, affordability and accessibility, research and development
• Thanks to HB 8, Texas is leading nation with dynamic outcomes- based funding formula; ensures colleges have access to the resources they need and train the workforce of the future
• Legislature’s investment making higher education very valuable to students, so students are equipped to enter the workforce and expand earning potential
• Soon will include direct admissions function; will allow students as early as Junior year to enter their class rank and SAT/ACT scores into My Texas Future and immediately receive a list of participating institutions where they qualify for direct admission
• Once students know where they qualify, they can complete a single application; will streamline admissions process for students and their families
• Specific emphasis on aligning institutions focuses with goal of building Talent Strong Texas; establishment of Texas University Fund (TUF) which is a nearly $4 B endowment; provide support towards our institution
• Texas Leadership Research Scholars Program is targeted to high-achieving students from lower-income backgrounds to Texas for their graduate studies; focus on leveraging momentum on initiatives to create impact at scale for Texas
• To maintain our trajectory and accelerate our progress, proposing strategic investments in 3 areas for upcoming biennium: student financial aid, research initiatives, and technology modernization
• We must provide students with greater clarity and predictability of their financial aid
• Request for research initiatives: intended for Texas Research Incentive Program (TRIP) which provides states matching funds; would pay off current amount of state matching funds received by the institutions; the other potion $13.8 M is requested to expand research Scholars Program
• The $15 M targeted towards technology and modernization reflects how pipeline of legacy system upgrades and security enhancements in ongoing and extends beyond supplemental appropriation in SB 30
• Majority of request, $9 M, is dedicated to further updating legacy systems; remaining is $5.5 M is crucial for maintaining data and technology efforts made over the past 5 years
• Request and initiatives represent our vision for a stronger, smarter Texas; not just preparing for the future, but actively shaping it

 

Q&A

• Owens – One of the aspects of the Research Initiatives EIR for Texas Leadership Research Scholars Program, can you elaborate a little more on that program?
  • Keyton – The is a component that was added to the Texas Leadership Scholars Program last session so that underlying Leadership Scholar Program for undergrads was started with some of the covid federal relief funds
  • Keyton – Last session, Legislature in statute added the graduate component; this is a stipend to attract high-achieving low-income graduate students to Texas; focused on building future pipeline for faculty and faculty talent in Texas; have 85 slots in that program right now, intended to extend to 100 slots in FY 26, 300 in FY 27
  • Keyton – Funding also could be used to expand to include additional population of students or just focused on low-income
• Warner – How much of a cost if Texas State and A&M Cristi were to get into that extra tier in TUF?
  • Keyton – Those are definitely the schools that would be closest to getting into that tier; will get back with you on that information

 

Item 2: Texas Association of Community Colleges Budget Hearing

Ray Martinez, President and CEO, Texas Association of Community Colleges

• Here to provide update on first year of HB 8 implementation and to discuss LAR for upcoming session
• Texas Community Colleges serve a broad and diverse student population; total enrollment of 665,000 students in 2023 academic year; our colleges are designed to meet needs of learners at every stage of their lives
• In 2023, awarded 125,000 degrees and certificates; 65,352 academic degrees and 59,663 career and technical education credentials; since 2001, degrees and certificates earned by community college students have increased by 62% with 36% growth in CTE credentials and 95% growth in academic credentials
• Additional 45% of all credentials were awarded to economically disadvantaged students; emphasizing critical role community colleges play in supporting upward mobility for Texas
• Affordability is crucial for community colleges; want students to be able to pursue educational goals without the burden of excessive financial strain
• Clear HB 8 has been pivotal in accelerating focus on student success; expresses appreciation to Governor Abbott, Lt. Governor Patrick, Speaker Phelan and entire Texas Legislature for historic investment in Texas Community Colleges through passage of HB 8 last session
• Linking state funding directly to student outcomes is critical because Texas Community Colleges are responsible for awarding over 90% of state’s career and technical education credentials, degrees and certificates
• Texas Community Colleges respectfully requests full amount of formula funding (will be recommended at later date by coordinating board) for coming biennium; funding is essential to ensure building skilled workforce Texas demands
• Also fully fund new community college formula for current biennium through supplemental appropriations bill; need this funding for continued success
• Texas is at a critical juncture; population is growing, and industry is expanding; demand for skilled workforce has never been greater
• Thanks to Commissioner Keyton and staff from Coordinating Board

 

Q&A

• Overmyer – Have you all started to see any impacts of HB 8 already?
  • Martinez – Absolutely, seeing impacts in various ways; do not have full data because the program has just been in place for one year; 30 of the 50 community colleges moved forward with implementation immediately; expecting 48 of the 50 to implement the Financial Aid for Swift Transfer (FAST) Program this year
  • Martinez – Will know more from Coordinating Board in October

 

 

Public Testimony

Noah Jones, on behalf of Texas Coalition for Healthy Minds

• Founded in 2015; coalition’s goal is to enhance policy collaboration for greater collective impact of Texas Legislature
• Goal is to collaborate with Texas lawmakers to advance policies and funding to access mental health and substance abuse services across Texas
• In 2023, Texas Legislature passed HB 400 which created 2 grants that assisted in increasing mental health workforce pipeline; psychiatric specialty program and behavioral health innovation grant; second grant was not funded in 88^th Leg
• Recommend including $20 M per biennium in EI funding for behavioral health innovation program created through HB 400; key benefits include prioritizing rural and underserved communities; encouraging partnerships between higher education institutions and public schools; creating future workforce pipeline; offering financial incentives such as salary increases to eligible faculty members instruction these students; allowing for public and private partnerships to receive additional funding
• 246 of 254 counties are designated as mental health provider shortage areas; shortages are very impactful in rural areas; Texas is ranked last in nation in access to health care services

 

Miranda Best Campos, self

• Council on Social Work education requires 400 hours of field experience for bachelor’s students; 900 hours for graduate students; these hours end up as lost wages for individuals
• Texas is ranked second in the nation with the most severe social work shortages projected for 2030; anticipated deficit of over 33,000 professionals across roles of child welfare, military, hospice, schools, substance abuse, etc.
• Shortage comes from students lack in interest in social work due to high cost and demands for completing a social work degree and most likely low pay upon graduation
• NISW worked with Rep. Bryant and Menendez on the SWIPS Bill in 2023 Leg. Session; Social Work Intern Practicum Stipends; bill sought to provide state-funded stipends for student internships to help alleviate social work shortage
• Hopeful we can see more movement and success with the SWIPS Bill that was not passed in past Legislature

 

Callie Kennedy, self

• Consider funding to establish stipend program to support social work students in completing their practicums
• Served as teaching assistant; lack of payment for social work students in higher education
• State funding to compensate students could create a pipeline to build up mental health workforce across the state
• Social work student interns contribute significantly to meet the economic, social and health needs for the people of Texas

 

Grace Atkins, Policy Advisor, Texas 2036

• Texas faces a significant skills gap; only about 45% of Texas are meeting these qualifications
• Support of Coordinating Board of Technology Modernization; success of HB 8 and state’s broader workforce readiness goals depend on robust and modern data systems; need enhanced capabilities
• Texas 2036 strongly supports adoption of Coordinating board EI 3 regarding Technology Modernization efforts

 

Alison Boleware, Director of Policy, Hogg Foundation for Mental Health

• Recognize enormous task ahead of LBB and Texas Legislature
• Making two recommendations for the budget; First recommendation is to fund the Behavioral Health Innovation Grant Program created last session through HB 400; however, grant program was not included in final phase of the budget; see this program as a way for regions to decide what they need for their own mental health and substance use workforce and develop appropriate program; recommend $20 M for this program
• Second recommendation; maintain the current funding for loan repayment program for mental health professionals at $28 M
• Commends coordinating board on how they have handled influx of funds; loan repayment is a large incentive to retain workers, so request and recommend funding be sustained

 

Bren Bradford, on behalf of Administrative and Policy track at University of Texas

• Asking LBB to consider include program that provides stipends to social work students during their practicum
• A 2023 survey conducted at UT Austin revealed 4 out of 5 social work students are distressed about meeting their monthly expenses; this is discouraging students from entering the field
• Lack of diversity in our profession prevents our profession from fully reflecting on the needs and perspectives of those who social work serves

 

Preston Poole, Texas Association of Community Health Centers (TACHC)

• Offer accessible, affordable and primary care for medial, health, dental, etc.; Texas has 75 FQHCs operating over 650 clinic sites across 127 counties; serving over 1.8 M Texans per year
• We employ of 15,000 FTEs; 800 physicians; 900 nurses; 500 mental health providers; also help to train future health care workforce
• Appreciate work done; Texas is in dire need of all provider types; including primary care physicians and mental health providers; encourage state to prioritize funding for Physician education loaner payment program; and Mental Health Professional loan repayment program; programs are good recruiting tools
• Believe state should continue to fund graduate medical expansion education program; also, the family practice residency program; joint admission medical program

 

Adjournment

 

 

Texas Higher Education Coordinating Board Legislative Appropriations Request

Texas Higher Education Coordinating Board

Legislative Appropriations Request FY 2026-2027

This report covers the submitted LAR document and attempts to summarize the priorities and changes in the aforementioned Legislative Appropriations Request.

Background Spotlight

Texas Higher Education Coordinating Board (THECB) reviewed the agency’s need to create an appropriations request for the FY 2026-2027 biennium.

THECB is requesting three exceptional items totaling $751.7 B over the 2026-27 biennium.

THECB is requesting $340.1 M for student financial aid to expand student opportunity and increase affordability through strategic investments.

THECB is requesting $396.6 M for research initiatives for advancing research programs at Texas public institutions of higher education.

THECB is requesting $15 M (including 4.0 FTEs) for partial restoration of Base Funding for Technology Efforts and Modernization

Rider Revisions and Additions Request

• Rider 2: Capital Budget:
  • (a) None of the funds appropriated above may be expended for capital budget items except as listed below. The amounts shown below shall be expended only for the purposes shown and are not available for expenditure for other purposes. Amounts appropriated above and identified in this provision as appropriations either for “Lease Payments to the Master Lease Purchase Program” or for items with an “(MLPP)” notation shall be expended only for the purpose of making lease-purchase payments to the Texas Public Finance Authority pursuant to the provisions of Government Code §1232.103.
  • (b) Notwithstanding (a) and the limitations of Article IX, Section 14.03, Transfers – Capital Budget, the capital budget authority of the Higher Education Coordinating Board may be increased by money appropriated to the coordinating board from money received under the student loan program established under Chapter 52, Education Code.
  • a. Acquisition of Information Resource Technologies
  • (1) Acquisition and Refresh of IT Infrastructure: $252,000 for 2026; $252,000 for 2027
  • b. Data Center/Shared technology Services
  • (1) data Center Consolidation: $4,571,451 for 2026; $4,571,450 for 2027
  • c. Cybersecurity
  • (1) Cybersecurity Initiatives: $125,000 for 2026; $125,000 for 2027
  • Total, Capital Budget: $4,948,451 for 2026; $4,948,450 for 2027
  • Method of Financing (Capital Budget):
  • General Revenue Fund: $3,463,916 for 2026; $3,463,915 for 2027
  • Other Funds: $1,484,535 for 2026; $1,484,535 for 2027
  • Total, Method of Financing: $4,948,451 for 2026; $5,948,450 for 2027
  • Justification: Request update to reflect current baseline amounts and consolidate projects that were paid for under the data center bill into one appropriation for administrative efficiency. Updates in paragraph (b) are intended to remove outdated agency program language and to allow the use existing appropriation authority for the self-funding student loan program under Rider 5 to be used for expenses that fit in a capital budget item which may be supported by those funds.
• Rider 3: Language struck from consideration.
  • Justification: Request deletion. There is no administrative need or value to use earned funds beyond what is directly appropriated by the Legislature to fund the Commissioner’s salary. Deleting the rider would not have any impact on the salary rate for the Commissioner
• Rider 4: Use of Excess Registration Fees Authorization: Any registration fee collected by the Coordinating Board to pay the expenses of a conference, seminar or meeting in excess of the actual costs of such conference, seminar or meeting may be used to pay the expenses of any other conference, seminar or meeting for which no registration fees were collected or for which registration fees collected were insufficient to cover the total expenses.
• Rider 5: Student Loan Program: All monies and future receipts in the Texas Opportunity Plan Fund and the Texas College Student Loan Bonds Interest and Sinking Fund, the Student Loan Auxiliary Fund, and the Student Loan Revenue Fund are hereby appropriated to the Texas Higher Education Coordinating Board, for the purposes specified in Article III, §§50b-4, 50b-5, 50b-6 and 50b-7 of the Texas Constitution and Education Code §§52.01-52.91 and 56.121-56.135. Any payments received on B-On-Time loans shall be deposited to the General Revenue Fund and are hereby appropriated to Strategy A.1.2 for administration of the loan program. Full-Time Equivalents (FTEs) employed by the Coordinating Board paid exclusively with bond proceeds appropriated in this Rider who are employed only to support the College Access Loans program are excluded from the Coordinating Board’s FTE limit and exempted from the provisions set out in Article IX, §6.10.
• Rider 6: Texas Public Educational Grant Programs: Unless a different percentage is set by passage of legislation amending the Texas Education Code, the amount of tuition to be set aside for the Texas Public Educational Grants Program in accordance with TEC §56.033(a)(1) shall be 15 percent in fiscal years 2026 and 2027.
• Rider 7: Texas Success Initiative:
  • a. Developmental Education Coursework. Funds appropriated for developmental courses under Texas Education Code, Section 51.336, shall be expended only for those costs associated with providing developmental education courses including instruction, tutoring, program evaluation, professional development for faculty and support staff, and other related costs. The funds shall not be used for the recruitment of students.
  • b. Intent Concerning Developmental Needs. It is the intent of the Legislature that all affected institutions of public higher education fully address developmental needs identified by the institutions through the Texas Success Initiative with appropriations made in this Act for the developmental education coursework and other available institutional funds.
  • Justification: Update Texas Education Code reference
• Rider 8: Baylor College of Medicine:
  • a. From funds appropriated by this Act for the Baylor College of Medicine, the Coordinating Board shall allocate an amount per student enrolled in the college equal to the cost of medical education in the established public medical schools cited in Subchapter D, Chapter 61, Education Code. The cost of medical education per student at public medical schools as determined by the Coordinating Board shall include General Revenue appropriations for instruction and operations, infrastructure, and staff benefits allocated to undergraduate medical education. Any unexpended appropriations made above as of August 31, 2026, are hereby appropriated for the same purpose in fiscal year 2027.
  • b. Appropriations made by this Act for Baylor College of Medicine are considered to be appropriations for any legal successor to Baylor College of Medicine and may be expended only for the purposes for which appropriated. Any details, limits, or restrictions applicable to those appropriations are applicable to that legal successor.
  • c. The Coordinating Board is authorized to make an intergovernmental transfer of the funds appropriated by this Act for Baylor College of Medicine to the Health and Human Services Commission.
• Rider 9: Cost Recovery for the Common Application Form: The Higher Education Coordinating Board may recover costs, less any appropriations provided above for this purpose, related to the common application form (either electronic or paper) for each general academic institution, each participating public two-year institution, and each participating independent institution. The amount collected from each institution shall be proportional to the percentage of enrollment compared to the total enrollment of all participating institutions based on the previous year’s certified Fall enrollment data. The funds collected shall only recover direct costs and only be used for the purposes of the electronic common application form, administrative expenses, and related activities designed to encourage student enrollment in college. Any balances on hand at the end of fiscal year 2026 may be carried over to fiscal year 2027 and any such funds are appropriated for fiscal year 2027 for the same purpose
• Rider 10: Tuition Equalization Grants: The Coordinating Board shall present the result of its most recent annual need survey for Tuition Equalization Grant (TEG) funds as part of its biennial appropriations request to the Legislative Budget Board and the Governor. The request shall include the number of eligible students and an estimate of the amount needed to fund fully the TEG program in the coming biennium. Each institution receiving tuition equalization grants shall furnish to the Coordinating Board any financial information requested.
  • Independent colleges and universities that enroll students receiving Tuition Equalization Grant funds appropriated by this Act shall provide reports to the Higher Education Coordinating Board regarding the diversity of their student body and faculty. The reports for headcount enrollment shall be submitted annually in a form and at a time consistent with the Board’s reporting schedule. The faculty data shall be submitted to the Integrated Postsecondary Educational Data System (IPEDS) and accessed by the Board when available from IPEDS.
  • For all funds appropriated above in Strategy B.1.2, Tuition Equalization Grant Program, and funds transferred into the TEG Program, any unexpended balances on hand at the end of fiscal year 2026 may be carried over to fiscal year 2027 and are appropriated for the same purpose.
  • Justification: The need survey submitted with the LAR is already the most up-to-date data that will be available for the duration of the legislative session. Modify the UB language to align with the UB language in other riders.
• Rider 11: Information Access Initiatives: The Higher Education Coordinating Board shall use the appropriations above to coordinate with the Texas Education Agency regarding sharing, integrating, and housing pre-kindergarten through grade 16 (P-16) public education data in implementing its Information Access Initiative. The two agencies shall work together to ensure that common and related data held by each agency is maintained in standardized, compatible formats to enable the efficient exchange of information between agencies and for matching of individual student records for longitudinally based studies and analysis. It is the intent of the Legislature that individual initiatives interact seamlessly across agency systems to facilitate efforts to integrate the relevant data from each agency into a longitudinal public education data resource to provide a widely accessible P-16 public education data warehouse.
• Rider 12: Tobacco Funds- Estimated Appropriation and Unexpended Balance: Included in the amounts appropriated above to the Texas Higher Education Coordinating Board are estimated appropriations of amounts available for distribution or investment returns out of the Permanent Fund for Minority Health Research and Education and the Permanent Fund for Nursing, Allied Health and Other Health Related Programs.
  • a. Amounts available for distribution or investment returns in excess of the amounts estimated above are also appropriated. In the event that amounts available for distribution or investment returns are less than the amounts estimated above, this Act may not be construed as appropriating funds to make up the difference.
  • b. All balances of estimated appropriations from the Permanent Fund for Minority Health Research, at the close of the fiscal year ending August 31, 2025, estimated to be $0 (and included above in the Method of Finance) and the income to said fund during the fiscal years beginning September 1, 2025, are hereby appropriated. Any unexpended appropriations made above as of August 31, 2026, are hereby appropriated for the same purposes for fiscal year 2027.
  • c. All balances of estimated appropriations from the Permanent Fund for Nursing, Allied Health and Other Health Related Programs, at the close of the fiscal year ending August 31, 2025, estimated to be $0 (and included above in the Method of Finance) and the income to said fund during the fiscal years beginning September 1, 2025, are hereby appropriated. Any unexpended appropriations made above as of August 31, 2026, are hereby appropriated for the same purposes for fiscal year 2027.
• Rider 13: Reporting by Texas Higher Education Coordinating Board: It is the intent of the Legislature that the Texas Higher Education Coordinating Board include in its Legislative Appropriations Request for the 2028-29 biennium, information on actual expenditures and budgeted expenditures for the Baylor College of Medicine, which receives distributions from the Permanent Health Fund for Higher Education and the Permanent Endowment Fund for Baylor College of Medicine.
• Rider 14: Language has been struck from consideration.
  • Justification: Request deletion. General authority for these collections and the direction to follow the applicable statutes in spending these funds is covered in Article IX, Sec. 8.13. Appropriation of Specialty License Plate Receipts. Deleting the rider would have no impact on the spending related to these collections.
• Rider 15: Language has been struck from consideration.
  • Justification: Request deletion. General authority for these collections and the direction to follow the applicable statutes in spending these funds is covered in Article IX, Sec. 8.13. Appropriation of Specialty License Plate Receipts. Deleting the rider would have no impact on the spending related to these collections.
• Rider 16: Language has been struck from consideration.
  • Justification: Request modification. General authority for these collections and the direction to follow the applicable statutes in spending these funds is covered in Article IX, Sec. 8.13. Appropriation of Specialty License Plate Receipts. The remaining language provides appropriation guidance for the collections for out of state institutions where the underlying statute does not specify the use of funds. This use of funds has been the existing practice and the modifications to the rider will have no impact on the spending related to these collections.
• Rider 17: Appropriations Transfer: Notwithstanding any other provisions of this bill, the Higher Education Coordinating Board may allow each institution to transfer, within a fiscal year, the lesser of 25 percent or $60,000 between an allocation an institution received for one of these programs: the Texas College Work-Study Program, TEXAS Grant Program, Texas Educational Opportunity Grant Program-Public Community Colleges, Texas Educational Opportunity Grant Programs-Public State and Technical Colleges and the Tuition Equalization Grant Program. This threshold is applied to the program from which the funds are being transferred.
• Rider 18: Language has been struck from consideration.
  • Justification: Request deletion. General authority for these collections and the direction to follow the applicable statutes in spending these funds is covered in Article IX, Sec. 8.13. Appropriation of Specialty License Plate Receipts. Deleting the rider would have no impact on the spending related to these collections.
• Rider 19: Language has been struck from consideration.
  • Justification: Request deletion. General authority for these collections and the direction to follow the applicable statutes in spending these funds is covered in Article IX, Sec. 8.13. Appropriation of Specialty License Plate Receipts. Deleting the rider would have no impact on the spending related to these collections.
• Rider 20: Language has been struck from consideration.
  • Justification: Request deletion. General authority for these collections and the direction to follow the applicable statutes in spending these funds is covered in Article IX, Sec. 8.13. Appropriation of Specialty License Plate Receipts. Deleting the rider would have no impact on the spending related to these collections.
• Rider 21: Tobacco Funds-Baylor College of Medicine- Permanent Health Fund: Included in the amounts appropriated to the Baylor College of Medicine in Strategy E.1.4, Tobacco-Permanent Health Fund, is an estimated appropriation based on the Baylor College of Medicine’s allocation of amounts, under Section 63.003, Education Code, available for distribution out of the Permanent Health Fund for Higher Education, estimated to be $1,914,193 in each year of the 2026-27 biennium. These funds are to be used for purposes specified in Education Code, §63.002 (c), (d), and (f).
  • Amounts available for distribution or investment returns in excess of the amounts listed above in Strategy E.1.4, Tobacco-Permanent Health Fund, are also appropriated. In the event that amounts available for distribution or investment returns are less than the amounts listed above in Strategy E.1.4, Tobacco-Permanent Health Fund, this Act may not be construed as appropriating funds to make up the difference.
  • All balances of estimated appropriations from the institution’s allocation from the amounts available for distribution out of the Permanent Health Fund for Higher Education, at the close of the fiscal year ending August 31, 2025, estimated to be $0 (and included in the Method of Finance above) and the income to said fund during the fiscal year beginning September 1, 2025, are hereby appropriated. Any unexpended appropriations made above as of August 31, 2026, are appropriated for the same purposes in fiscal year 2027.
• Rider 22: Texas College Work Study Program: Because of the positive effect of work study programs on student participation and success, funds appropriated above to Strategy B.1.5, College Work Study Program, are intended to maximize the extent to which state funds appropriated for student grants that are awarded with criteria requiring a work study component.
• Rider 23: Tobacco Funds- Baylor College of Medicine- Permanent Endowment Fund: Included in the amounts appropriated to Baylor College of Medicine in Strategy E.1.3, Tobacco-Permanent Endowment is an estimated appropriation of amounts available for distribution or investment returns out of the Permanent Endowment Fund for the Baylor College of Medicine.
  • a. Amounts available for distribution or investment returns in excess of the amounts estimated above are also appropriated. In the event that amounts available for distribution or investment returns are less than the amounts estimated above, this Act may not be construed as appropriating funds to make up the difference.
  • b. All balances of estimated appropriations from the Permanent Endowment Fund for the Baylor College of Medicine and all balances from the institution’s allocation from the amounts available for distribution out of the Permanent Health Fund for Higher Education, at the close of the fiscal year ending August 31, 2025, estimated to be $0 (and included in the Method of Finance above), and the income to said fund during the fiscal years beginning September 1, 2025, are appropriated. Any unexpended appropriations made above as of August 31, 2026, are appropriated for the same purposes for fiscal year 2027.
• Rider 24: Annual Financial Aid Report: The Coordinating Board shall present an annual report concerning student financial aid at Texas public and independent institutions of higher education. This report shall be provided to the Legislative Budget Board by November 1 of each calendar year.
• Rider 25: Texas Armed Services Scholarship Program: Out of the funds appropriated above in Strategy B.1.8, Texas Armed Services Scholarship Program, any unexpended balances on hand on or after March 1 of each year shall be transferred to the TEXAS Grant Program and are hereby appropriated for the purpose set forth in Strategy B.1.1. Any payments received on Texas Armed Services Scholarship Program loans are appropriated to Strategy A.1.2 for administration of the program.
• Rider 26: Professional Nursing Shortage Reduction Program: Appropriations for the Professional Nursing Shortage Reduction Program total $23,400,000 in fiscal year 2026 and $23,400,000 in fiscal year 2027. These funds shall be allocated as follows:
  • The Texas Higher Education Coordinating Board (THECB) shall allocate the funds appropriated in their bill pattern in Strategy D.1.6, as follows:
  • a. Up to 3 percent each year may be used for administrative expenses. Funds used for program administration shall proportionally reduce the amounts allocated in subsections b, c, and d.
  • b. Growth Tier. Out of funds appropriated above in Strategy D.1.6, Professional Nursing Shortage Reduction Program, $14,000,000 in fiscal year 2026 and $14,000,000 in fiscal year 2027 shall be distributed in an equitable manner to institutions with nursing programs, including institutions graduating their first nursing class, based on increases in the numbers of nursing students graduating. Nursing graduates include graduates for initial licensure. The THECB shall allocate up to 50 percent in each fiscal year of the biennium and any unexpended amounts to community colleges.
  • c. Production Tier. Out of funds appropriated above in Strategy D.1.6, Professional Nursing Shortage Reduction Program, $4,000,000 in fiscal year 2026 and $4,000,000 in fiscal year 2027 shall be distributed in an equitable manner based on the total number of nursing students graduating from a program each year. Nursing graduates include graduates for initial licensure.
  • d. Faculty Tier. Out of funds appropriated above in Strategy D.1.6, Professional Nursing Shortage Reduction Program, $5,400,000 in fiscal year 2026 and $5,400,000 in fiscal year 2027 shall be distributed in an equitable manner based on the total number of doctoral level and master’s in nursing education students graduating from a program each year.
  • e. For THECB expenditure purposes, any funds not expended in fiscal year 2026 may be expended in fiscal year 2027 for the same purposes. If an institution spends funds on nonqualifying expenditures or does not spend the funds within the designated timeframe, the institution shall return these funds to the THECB by the date specified by THECB rule. The THECB shall reallocate these funds to other qualified programs. All institutions receiving funds shall submit to the THECB a detailed accounting of funds received, obligated or expended.
  • f. The THECB may not include nonresident students who are enrolled in online professional nursing programs while residing outside of the state in methodologies used to calculate program awards described in Paragraphs b, c, and d.
• Rider 27: Family Practice Rural and Public Health Rotations: Funds appropriated above for Family Practice Residency Programs, include up to $113,957 in fiscal year 2026 and $113,957 in fiscal year 2027 for one month rural rotations or one month public health rotations for family practice residents in accordance with the provision of Education Code §51.918.
• Rider 28: Developmental Education and Underprepared Student Support: Funds appropriated above in Strategy A.1.3, Academic Innovation and Success for the Developmental Education Program, $1,285,250 in General Revenue for fiscal year 2026and $1,285,250 in General Revenue for fiscal year 2027 shall be used to continue scaling effective strategies that promote systemic reforms, to improve student outcomes and provide professional development opportunities for faculty and staff focused on improving evidence-based practices for advising, acceleration strategies and completion/transfers of underprepared students. Out of funds appropriated to this strategy, the Higher Education Coordinating Board will collaborate with Texas public institutions of higher education to scale and enhance corequisite models using non-course competency based interventions, emporium/modular and other innovative technology-based and hybrid delivery models, tutoring and supplemental instruction, as well as support services impacting persistence and completions. Out of funds appropriated to this strategy, the Higher Education Coordinating Board will analyze and compare information collected annually from all Texas public institutions on the annual Developmental Education Program Survey and other Texas Success Initiative (TSI) data to determine the most effective and efficient interventions and submit a report to the Governor, Lieutenant Governor, Speaker of the House, the Chair of the Senate Finance Committee, the Chair of House Appropriations, Senate Committee on Higher Education and House Committee on Higher Education before February 1, 2027. Any balances remaining as of August 31, 2026, are hereby appropriated for the same purpose for the fiscal year beginning September 1, 2026.
• Rider 29: Toward Excellence, Access and Success (TEXAS) Grant Program: For all funds appropriated in Strategy B.1.1, TEXAS Grant Program, and funds transferred into the TEXAS Grant Program, any unexpended balances on hand at the end of fiscal year 2026 may be carried over to fiscal year 2027 and 2024 are hereby appropriated for the same purposes in fiscal year 2025.
  • The Higher Education Coordinating Board shall coordinate with eligible institutions to distribute funds appropriated above for Strategy B.1.1, TEXAS Grant Program, to those institutions in a manner that ensures that each eligible student who graduates in the top 10 percent of the student’s high school graduating class receives an initial grant for the 2023-2024 academic year. Notwithstanding any other provision of this Act, the Higher Education Coordinating Board may transfer not more than five percent of the total funds appropriated for Strategy B.1.1, TEXAS Grant Program, for the state fiscal year ending August 31, 2025, to that strategy for the state fiscal year ending August 31, 2024, to the extent necessary to implement this rider.
  • Any amounts received by the Higher Education Coordinating Board as donations under Texas Education Code §56.310 during the biennium beginning September 1, 2025, are hereby appropriated for the purpose of awarding TEXAS Grants during the biennium beginning September 1, 2025.
  • Any amounts transferred to the Higher Education Coordinating Board by the Comptroller of Public Accounts in accordance with Texas Property Code §72.1016(e) which provides that five percent of the money collected from stored value cards presumed to be abandoned are to be used as grants under Subchapter M. Education Code Chapter 56, are hereby appropriated for the biennium beginning September 1, 2025, for the purpose of awarding TEXAS Grants during the biennium beginning September 1, 2025.
  • Justification: Change the UB language to align with the UB language in other riders. Update years.
• Rider 30: Texas Educational Opportunity Grant (TEOG) Program- Public Community Colleges: Out of the funds appropriated above in Strategy B.1.3, Texas Educational Opportunity Grant Public Community Colleges, the Higher Education Coordinating Board shall distribute funding to Public Community Colleges for the Texas Educational Opportunity Grant Program. For all funds appropriated above in Strategy B.1.3, Texas Educational Opportunity Grant Public Community Colleges, and funds transferred into the Texas Educational Opportunity Grant Program Public Community Colleges, any unexpended balances on hand at the end of fiscal year 2026 may be carried over to fiscal year 2027 and are appropriated for the same purpose.
• Rider 31: Texas Educational Opportunity Grant (TEOG) Program- Public State and Technical Colleges: Out of the funds appropriated above in Strategy B.1.4, Texas Educational Opportunity Grant Public State and Technical Colleges, the Higher Education Coordinating Board shall distribute funding to Public State and Technical Colleges for the Texas Educational Opportunity Grant Program. For all funds appropriated above in Strategy B.1.4, Texas Educational Opportunity Grant-Public State and Technical Colleges, and funds transferred into the Texas Educational Opportunity Grant Program Public State and Technical Colleges, any unexpended balances on hand at the end of fiscal year 2026 may be carried over to fiscal year 2027 and are appropriated for the same purpose
• Rider 32: College Work-Study (CWS) Program: For all funds appropriated above in Strategy B.1.5, College Work Study (CWS) Program and funds transferred into the CWS Grant Program, any unexpended balances on hand at the end of fiscal year 2026 may be carried over to fiscal year 2027 and are appropriated for the same purpose.
• Rider 33: Full-Time Equivalents Funded by Private Grants: Consistent with the provisions in Article IX, §6.10, the Texas Higher Education Coordinating Board may exceed the limitation on the number of full-time equivalent employees (FTEs) indicated above only by the number of FTEs whose salaries, benefits, and other expenses related to employment are through federal or private grant funds.
• Rider 34: Graduate Medical Education Expansion: Out of funds appropriated above in Strategy D.1.3, Graduate Medical Education Expansion, the Higher Education Coordinating Board shall allocate funds as follows:
  • a. $239,345 in fiscal year 2026 and $239,345 in fiscal year 2027 in Strategy D.1.3, Graduate Medical Education Expansion, shall be used to award one-time graduate medical education planning and partnership grants to hospitals, medical schools, and community-based ambulatory patient care centers to develop new graduate medical education programs.
  • b. $99,903,570 in fiscal year 2026 and $99,903,570 in fiscal year 2027 in Strategy D.1.3, Graduate Medical Education Expansion, shall be used to enable new or existing GME programs to increase the number of first year residency positions and provide support to these positions through the biennium. The minimum per resident award amount is $75,000.
  • c. $4,739,027 in fiscal year 2026 and $4,739,027 in fiscal year 2027 in Strategy D.1.3, Graduate Medical Education Expansion, shall be used to award grants to graduate medical education programs to enable those programs that received a grant award in fiscal years 2016 and 2017 to fill first year residency positions that are unfilled as of July 1, 2013.
  • d. $11,668,058 in fiscal year 2026 and $11,668,058 in fiscal year 2027 in Strategy D.1.3, Graduate Medical Education Expansion, shall be used to award grants to graduate medical education programs that received a grant award for the New and Expanded Graduate Medical Education Program in fiscal year 2015.
  • Any unexpended balances on hand at the end of fiscal year 2026 are hereby appropriated for the same purpose for fiscal year 2027. Notwithstanding Article IX, Section 14.01 of this Act any funds identified above that remain unexpended and unobligated after the purposes stated in this rider have been reasonably addressed, may be transferred to the other programs identified by this rider.
• Rider 35: Family Practice Residency Program: All unexpended balances for Strategy D.1.1, Family Practice Residency Program at the end of fiscal year 2026 may be carried over to fiscal year 2027 and are appropriated for the same purpose.
• Rider 36: Trauma Fellowships: Appropriations above to the Higher Education Coordinating Board in Strategy D.1.4, Trauma Care Program, include $2,957,203 in fiscal year 2026 and $2,957,203 in fiscal year 2027 from General Revenue. This program provides funds for the expansion of physician and nursing trauma fellowships per Education Code, Chapter 61, Article 9, Subchapter HH, Texas Emergency and Trauma Care Educational Partnership Program. Any unexpended balance for Strategy D.1.4, Trauma Care Program, at the end of fiscal year 2026 may be carried over to fiscal year 2027 for the same purpose.
• Rider 37: Teacher Research Incentive Program: Funds appropriated above in Strategy G.1.1, Texas Research Incentive Program, shall be distributed in accordance with Education Code, Sections 62.121-62.124.
• Rider 38: For all funds appropriated in Strategy B.1.7, Educational Aide Program, any unexpended balances on hand at the end of fiscal year 2026 are hereby appropriated for the same purposes in fiscal year 2027. The Higher Education Coordinating Board is directed to prioritize the distribution of funds appropriated above in Strategy B.1.7, Educational Aid Program, to institutions providing a match of at least 10 percent for each exemption awarded.
• Rider 39: Advise TX: The Higher Education Coordinating Board may solicit and accept gifts for additional support for the Advise program. Any unexpended balances on hand at the end of fiscal year 2026 may be carried over to fiscal year 2027 and are appropriated for the same purpose. Out of funds appropriated above, the Higher Education Coordinating Board shall report information regarding the effectiveness of the Advise TX program to the Legislative Budget Board and Governor’s Office by January 1st of each year.
  • Justification: Request consolidation of riders 39 and 42 regarding Advise TX program and alignment of naming conventions.
• Rider 40: Austin Grant Program: Out of funds appropriated above to Strategy G.1.2, the Texas Higher Education Coordinating Board (THECB) shall distribute to autism research centers at public and private institutions of higher education that currently provide evidence-based behavioral services and training, in the amounts and for the purposes as follows:
  • a. Parent-directed Treatment: $2,055,000 per fiscal year to serve 750 children per year;
  • b. Board-certified Behavioral Analyst (BCBA) Training for Teachers/Paraprofessionals: $950,000 per fiscal year to serve 2,547 children per year. The research centers may contract with educational service centers to provide this training;
  • c. Research, development and evaluation of innovative autism treatment models: $700,000 per fiscal year; and
  • d. Administrative support of the programs in subsections a through c: $150,000 per fiscal year may be expended by the Higher Education Coordinating Board.
  • e. If funds appropriated under Paragraphs a, b, or c exceed the funds that can be expended in accordance with the requirements of that paragraph, the Higher Education Coordinating Board may expend the excess funds for any purpose described in Paragraphs a, b, or c.
  • f. Any unexpended balances on hand at the end of fiscal year 2026 are hereby appropriated for the same purpose for fiscal year 2027.
  • THECB shall gather data on the above programs from each institution’s autism research center and submit an annual report on the effectiveness of each program, including the number of children served, the number of parents and/or teachers/paraprofessionals trained, and the results of the research on innovative treatment models. The report shall be submitted no later than September 1 of each year, to the Legislative Budget Board, Office of the Governor, the Chair of the House Appropriations Committee, Chair of the Senate Finance Committee, Speaker of the House, and Lieutenant Governor.
• Rider 41: Permanent Fund Supporting Graduate Medical Education: The proceeds of the Permanent Fund Supporting Graduate Medical Education available for allocation are appropriated in Strategy D.1.3, Graduate Medical Education Expansion, at the Texas Higher Education Coordinating Board in Other Funds for each year of the biennium ending August 31, 2027, for the purpose of supporting Graduate Medical Education.
• Rider 42: Language has been struck from consideration.
  • Justification: Recommend deletion of this rider and addition of the reporting requirement to Rider 39.
• Rider 43: Program to Encourage Certification to Teach Bilingual Education, English as a Second Language, or Spanish: Out of the funds appropriated above in Strategy C.1.2, Bilingual Education Program, the Coordinating Board may allocate in equal amounts to the University of North Texas, University of North Texas at Dallas, Texas Woman’s University, The University of Texas at Dallas, The University of Texas Arlington, Texas A&M Commerce and DFW Tech Teach, in consultation with Texas Tech University, The University of Texas San Antonio, The University of Texas El Paso, The University of Texas Rio Grande Valley, Texas A&M University-Kingsville, and University of Houston – Clear Lake to be used for grants to provide financial incentives in the form of tuition assistance, to encourage students who enroll in an educator preparation program at the university to become certified to teach bilingual education, English as a Second Language, or Spanish in school districts with high critical needs. Any balances on hand at the end of fiscal year 2026 may be carried over to fiscal year 2027 for the same purpose.
  • The program shall make awards to qualified students admitted to the Teacher Education Program in Bilingual Education or other comparable programs for teacher education in English as a second language or Spanish. Qualified students must: 1) have demonstrated financial need, as defined by the Higher Education Coordinating Board and 2) Maintain a minimum cumulative 3.0 GPA. The program shall submit a report not later than January 1, 2025, to the Texas Higher Education Coordinating Board detailing annual information on the following performance measures:
  • a. Student graduation rates from the program;
  • b. Passage rates for the Texas Examination of Education Standards Bilingual Education Supplemental exam and/or the English as a Second Language Supplemental exam; and Graduate employment data at Texas public school districts.
• Rider 44: Language has been struck from consideration.
  • Justification: Request deletion. Listed amounts are part of the Open Education and Course Sharing program in the consolidated Academic Innovation and Success strategy and referenced in the requested version of Rider 47.
• Rider 45: Preceptorship Program: All unexpended balances for Strategy D.1.2, Preceptorship Program, at the end of fiscal year 2026 may be carried over to fiscal year 2027 and are appropriated for the same purpose.
• Rider 46: Texas Child Mental Health Care Consortium:
  • (a) Appropriation. Included in the amounts appropriated above in Strategy D.1.7, Child Mental Health Care Consortium, is $140,277,958 in General Revenue in fiscal year 2026 and $140,277,954 in General Revenue in fiscal year 2027. Also included in the amounts appropriated above in Strategy D.1.7, Child Mental Health Care Consortium is all unexpended balances as of August 31, 2025, to be used for the same purpose for the biennium beginning September 1, 2025 (estimated to be $0 in General Revenue).
  • (b) Programs. At the direction of the Texas Child Mental Health Care Consortium (TCMHCC), the Texas Higher Education Coordinating Board (THECB) shall transfer appropriations though interagency contracts with health-related institutions for the following programs:
  • Program:
  • Child Psychiatry Access Network (CPAN) $23,620,280; for 2026 $23,620,279 for 2027
  • Texas Child Access Through Telemedicine $71,041,395 for 2026; $71,041,395 for 2027
  • Workforce Expansion $21,540,733 for 2026; $21,540,732 for 2027
  • CAP Fellowships $5,314,392 for 2026; $5,314,391 for 2027
  • Coordinated Research $13,787,730 for 2026; $13,787,729 for 2027
  • Central Operation Support Hub $3,141,547 for 2026; $3,141,547 for 2027
  • External Evaluation $500,000 for 2026; $500,000 for 2027
  • Administration $1,331,881 for 2026; $1,331,881 for 2027
  • (c) Administration and Oversight. Not later than September 1, 2025, out of funds referenced in Subsection (b) of this rider, THECB shall execute interagency and other contracts to transfer $1,331,881 in fiscal year 2026 and $1,331,881 in fiscal year 2027 to an institution of higher education designated by TCMHCC for oversight and evaluation of the outlined initiatives. THECB may employ, using existing resources, one additional FTE in each fiscal year of the 2026-27 biennium to oversee the transfer.
  • (d) Transfers and LBB Approval. TCMHCC may transfer up to 10 percent of funds between programs referenced in Subsection (b) of this rider. If TCMHCC needs to transfer more than 10 percent of funds between programs, TCMHCC shall seek approval from the Legislative Budget Board (LBB). The request shall be considered approved unless the LBB issues a written disapproval within 10 business days.
  • (e) Unexpended Balances. Any unexpended balances remaining at THECB or any participating institution of higher education which may have received a transfer of this appropriation as of August 31, 2026, are appropriated for the same purpose in the fiscal year beginning September 1, 2026.
  • (f) Contingency for Behavioral Health Funds. Notwithstanding appropriation authority granted above, the Comptroller of Public Accounts shall not allow the expenditure of General Revenue-Related Funds at the Texas Higher Education Coordinating Board in Strategy, D.1.7, Child Mental Health Care Consortium, in fiscal year 2026 or 2027, as identified in Art. IX §10.04, Statewide Behavioral Health Strategic Plan and Coordinated Expenditures, if the Legislative Budget Board provides notification to the Comptroller of Public Accounts that the agency’s planned expenditure of those funds in fiscal year 2026 or fiscal year 2027 does not satisfy the requirements of Art. IX §10.04, Statewide Behavioral Health Strategic Plan and Coordinated Expenditures.
• Rider 47: Informational Listing of Appropriated Funds: Academic Innovation and Success: Funds appropriated above in Strategy A.1.3, Academic Innovation and Success are intended to assist Texans to prepare for, enter, and/or reenter higher education, increase success rates, and increase access to courses with reduced textbook costs. These include programs that provide a one-stop advising tool for all students, increase advising at Texas high schools with low college going rates, improve the effectiveness and delivery of developmental education, improve college and career advising for all students, support programs that use evidence-based models to increase student success, and increase the availability of open education resources and institutional course-sharing through grants and the maintenance of an Open Educational Resources Repository. The distribution of available amounts in Strategy A.1.3, Academic Innovation and Success includes, but is not limited to, the following program allocations:
  • Program:
  • Developmental Education: 1,285,250 for 2026; 1,285,250 for 2027
  • My Texas Future: 9,300,000 for 2026; 9,300,000 for 2027
  • College and Career Advising: 3,525,852 for 2026; 3,525,852 for 2027
  • Student Success Programs: 5,083,298 for 2026; 5,083,298 for 2027
  • Open Education and Course Sharing: 8,231,278 for 2026; 8,231,278 for 2027
  • Total: $27,425,678 for 2026; $27,425,678 for 2027
  • If General Revenue funds appropriated for any program above exceed the funds that can be expended in accordance with the requirements of the program, the Higher Education Coordinating Board may expend the excess funds for any other purpose above.
  • Any unexpended balances on hand at the end of fiscal year 2026 are appropriated for the same purposes in fiscal year 2027.
  • Justification: Request update to reflect programs consolidated in new budget structure. Advise TX is a component of the My Texas Future program as administered by the agency. Update years.
• Rider 48: College and Career Advising- Texas OnCourse Program: From funds appropriated above to Strategy A.1.3, Academic Innovation and Success, the College and Career Advising program, in coordination with the Governor’s Tri Agency Initiative, shall support the sue of strategic and technology driven approaches to student advising based on student demographics, enrollment, performance and outcomes data. The Board may contract with the Texas Higher Education Foundation in order to license or otherwise commercialize products and resources developed by Texas OnCourse.
  • Any unexpended appropriations as of August 31, 2025, are appropriated to the Higher Education Coordinating Board for the same purposes for fiscal year 20246. Any unexpended   as of August 31, 2026, are appropriated for the same purposes for the fiscal year beginning September 1, 2026.
  • All revenue received during fiscal year 2026 and 2027, related to the use of OnCourse services, are appropriated for the same purpose.
  • Justification: Request update to reflect these funds are part of the agency’s consolidated advising efforts and part of the new Academic Innovation and Success strategy. Update years.
• Rider 49: Graduate Medical Education Expansion Administration: It is the intent of the legislature, that in administrating the program above in Strategy D.1.3, Graduate Medical Education Expansion, the Higher Education Coordinating Board shall consider the timing of the grant application and award process, and shall consider the time needed to obtain accreditation approval of new residency positions as well as the time needed to allow new residency positions to be included in the next scheduled annual match process by the National Resident Matching Program.
• Rider 50: Informational Listing of Appropriated Funds: Educational and Loan Repayment Programs: The distribution of available amounts in Strategy C.1.3, Educational Loan Repayment Program includes the following program allocations:
  • Program:
  • Teach for Texas Loan Repayment Program: $1,304,063 for 2026; $1,304,063 for 2027
  • Math and Science Loan Repayment Program: 1,255,313 for 2-26; 1,255,313 for 2027
  • Peace Officer Loan Repayment Program: 2,063,757 for 2026; 2,063,757 for 2027
  • Physician Education Loan Repayment Program: 17,767,492 for 2026; 17,767,492 for 2027
  • Mental Health Loan Repayment Program: 14,000,000 for 2026; 14,000,000 for 2027
  • Nursing Faculty Loan Repayment Program: 3,500,000 for 2026; 3,500,000 for 2027
  • Nurse Loan Repayment Program: 6,250,000 for 2026; 6,250,000 for 2027
  • Total: $46,140,625 for 2026; $46,140,625 for 2027
  • If General Revenue funds appropriated for any program above exceed the funds that can be expended in accordance with the requirements of the program, the Higher Education Coordinating Board may expend the excess funds for any other purpose above.
  • Any unexpended balances on hand at the end of fiscal year 2026 may be carried over to fiscal year 2027 and are appropriated for the same purposes.
• Rider 51: Physician Education Loan Repayment Program Retention Rates: The Texas Higher Education Coordinating Board shall report the results of a survey of physicians who have received funding through the Physician Education Loan Repayment Program to determine rates of retention in those shortage areas and counties. The Texas Higher Education Coordinating Board shall report the results of the survey in its Annual Financial Aid Report of every even numbered year.
  • Justification: Modify language to better clarify the population being surveyed.
• Rider 52: Physician Education Loan Repayment Program: The funds provided to Strategy C.1.3, Educational Loan Repayment for the Physician Education Loan Repayment Program, are appropriated in accordance with Education Code §§ 61.531 – 61.539 for repayment of eligible student loans received by a physician who meets the stipulated requirements.
• Rider 53: Teach for Texas Loan Repayment Assistance Program: Any payments received from students are hereby appropriated for the same purposes as the original Teach for Texas Loan Repayment Assistance Program.
• Rider 54: Nursing Faculty Loan Repayment Assistance Program: The funds provided to the Nursing Faculty Loan Repayment Program are appropriated to Strategy C.1.3, Educational Loan Repayment, in accordance with Education Code §§ 61.9821 – 61.9828 for repayment of eligible student loans received by qualified nurses who meet the stipulated requirements. In accordance with Texas Education Code Chapter 61, Subchapter II, §61.9826 which provides for the allocation of funds from the Physician Education Loan Repayment Program Fund (Account 5144) for the Nursing Faculty Loan Repayment Assistance Program, any reallocated funds are hereby appropriated for loan repayment assistance to qualifying nursing faculty.
• Rider 55: Math and Science Scholar’s Loan Repayment Program: The funds provided to Strategy C.1.3, Educational Loan Repayment Program include funding for the Math and Science Scholar’s Loan Repayment Program, which are appropriated in accordance with Education Code §§ 61.9831- 61.9841.
  • Justification: SB 532 (88th Legislature, Regular Session) removed the requirement for a participant in the Math and Science Scholar’s Loan Repayment Program to teach at a Title I school.
• Rider 56: Language has been struck from consideration.
  • Justification: Recommend deletion. Funding in this strategy has been moved to other items for the 2026-27 budget request in alignment with previous guidance and the approved budget structure.
• Rider 57: Forensic Psychiatry Fellowship Program: Out of funds appropriated above in Strategy D.1.8, Forensic Psychiatry Fellowship Program, $2,500,000 in General Revenue in fiscal year 2026 and $2,500,000 in General Revenue in fiscal year 2027 will be used to support the development or expansion, and administration of accredited forensic psychiatry one-year fellowship training programs and to support the salaries and benefits of the training physicians. Any unexpended balances as of August 31, 2026, are appropriated for the same purpose for the fiscal year beginning September 1, 2026.
• Rider 58: Language has been struck from consideration.
  • Justification: Update to remove contingency language.
• Rider 59: Language has been struck from consideration.
  • Justification: Recommend deletion. Study will be completed by the 2024 deadline.
• Rider 60: Language has been struck from consideration.
  • Justification: Recommend deletion. Rider references one-time funding for the 2024-25 biennium.
• Rider 61: Language has been struck from consideration.
  • Justification: Request deletion. Amounts are part of the Student Success and Open Education & Course Sharing programs in the new consolidated Academic Innovation and Success strategy.
• Rider 62: Computer Science Pipeline Initiative: Out of funds appropriated above in Strategy A.1.6, Computer Science Pipeline Initiative, $5,000,000 in General Revenue in fiscal year 2026 and $5,000,000 in General Revenue in fiscal year 2027 is to be used to consolidate and streamline computer science education by establishing a statewide Computer Science Pipeline Initiative.
  • In addition to amounts appropriated above in Strategy A.1.6, Computer Science Pipeline Initiative, $2,000,000 in General Revenue in fiscal year 2026 and $2,000,000 in General Revenue in fiscal year 2027 is hereby appropriated to the Higher Education Coordinating Board, contingent upon the Higher Education Coordinating Board demonstrating to the Comptroller of Public Accounts that the Computer Science Pipeline Initiative has raised at least $2,000,000 in gifts and donations, including those offered in-kind, in fiscal year 2026 and at least $2,000,000 in gifts and donations, including those offered in-kind, in fiscal year 2027. These funds shall be used for the Computer Science Pipeline Initiative. The Higher Education Coordinating Board shall furnish information supporting the amounts of gifts and donations for the program to the Comptroller of Public Accounts. If the Comptroller finds the information sufficient, a finding of fact to that effect shall be issued and the contingent appropriation shall be made available for the intended purpose. Any unexpended balances of funds remaining as of August 31, 2026, are appropriated for the fiscal year beginning September 1, 2026, for the same purpose.
• Rider 63: Rural Residency Physician Grant Program: Funds appropriated above in Strategy D.1.10, Rural Residency Physician Grant Program, $1,500,000 in General Revenue in fiscal year 2026 and $1,500,000 in General Revenue in fiscal year 2027 shall be used to award grants for the creation of new graduate medical education positions in rural and non-metropolitan areas. Any unexpended balances of funds remaining as of August 31, 2026, are appropriated for the fiscal year beginning September 1, 2026, for the same purpose.
• Rider 64: Nursing Innovation Grant Program: Funds appropriated above in Strategy D.1.11, Nursing Innovation Grant Program, $6,000,000 in General Revenue in fiscal year 2026 shall be used for the purpose of supporting innovation in nursing education programs. Up to 3 percent of funding may be used for administrative expenses at the Higher Education Coordinating Board. Funding will be used to support the development of innovative nursing education programs, evaluation of these and other innovative nursing programs, and research on methods to increase the state’s nursing workforce pipeline. Any unexpended balances of funds remaining as of August 31, 2026, are appropriated for the fiscal year beginning September 1, 2026, for the same purpose.
• Rider 65: Language has been struck from consideration.
  • Justification: Recommend update to remove contingency language.
• Rider 66: Scholarship Program: Included in amounts appropriated above in Strategy B.1.12, Scholarship Program, is $500,000 in General Revenue in fiscal year 2026 and $500,000 in General Revenue in fiscal year 2027 for the Senfronia Thompson Scholarship Program.
• Rider 67: Language has been struck from consideration.
  • Justification: Recommend deletion. Rider is inapplicable to 2026-27 biennium.
• New Rider: Funds appropriated above in Strategy C.1.3, Workforce Education and Reskilling Programs are intended to a for creating, redesigning, or expanding workforce training programs and to provide grants and funding to enhance pathways into high-demand and significantly higher-earning occupations. The distribution of available amounts in Strategy C.1.3, Workforce Education and Reskilling Programs includes, but is not limited to, the following program allocations:
  • Program:
  • TRUE Program: $12,500,000 for 2026; $12,500,000 for 2027
  • Innovative Adult career Education Grant Pgm: $4,332,000 for 2026; UB for 2027
  • Total: $16,832,000 for 2026; $12,500,000 for 2027
  • If General Revenue funds appropriated for any program in this strategy exceed the funds that can be expended in accordance with the requirements of the program, the Higher Education Coordinating Board may expend the excess funds for any other program funded by this strategy.
  • Any unexpended balances on hand at the end of fiscal year 2026 are appropriated for the same purposes in fiscal year 2027.
  • Justification: Request informational rider for the new Workforce Education and Reskilling Programs strategy to outline expected allocation of items to be funded.
• New Rider: Financial Aid for Swift Transfer: It is the intent of the legislature that the Texas Higher Education Coordinating Board distribute the funding transferred from the Texas Education Agency, estimated to be $77,211,269 for fiscal year 2026 and $77,211,269 for fiscal year 2027 to participating public institutions of higher education to enable certain students to enroll at no cost to the student in dual credit courses. Any unexpended balances on hand at the end of fiscal year 2026 are appropriated for the same purposes in fiscal year 2027.
  • Justification: Request new rider for the FAST program established through House Bill 8 (88th Regular Session) to replace language from the contingency rider for that bill and outline the ongoing estimated appropriations and use of actual funding to be received by THECB from TEA.
• New Rider: Nurse Loan Repayment Program: The funds provided to Strategy C.1.3, Educational Loan Repayment for the Nurse Loan Repayment Program, are appropriated in accordance with Education Code §§ 61.651 – 61.659 for repayment of eligible student loans received by a nurse who meets the stipulated requirements.
  • Justification: Request new rider for a program that was created under SB 25 and funded by the 88th Legislature.
• New Rider: Texas Leadership Scholars Program: For all funds appropriated above in Strategy B.1.12, Texas Leadership Scholars Program, any unexpended balances on hand at the end of fiscal year 2026 may be carried over to fiscal year 2027 and any such funds are appropriated for fiscal year 2027 for the same purpose.
  • Justification: Request new rider for a program that was codified under HB 1590 and funded by the 88th Legislature.
• New Rider: Texas Transfer Grants Program: For all funds appropriated above in Strategy B.1.11, Texas Transfer Grants Program, any unexpended balances on hand at the end of fiscal year 2026 may be carried over to fiscal year 2027 and any such funds are appropriated for fiscal year 2027 for the same purpose.
  • Justification: Request new rider for a program that was funded by the 88th Legislature.

Special Provisions Relating Only to State Agencies of Higher Education

• Sec 16: Formula Variable and Educational and General Income Audits: The Texas Higher Education Coordinating Board in consultation with the State Auditor’s Office and the Legislative Budget Board shall clearly define all variables used by the Eighty-eighth Legislature in arriving at formula appropriations for fiscal years 2024 and 2025. According to an audit plan developed in consultation with the Coordinating Board and Legislative Budget Board, all variables of selected formulas used in making fiscal years 2024 and 2025 formula appropriations are subject to audit by the Coordinating Board. The Coordinating Board shall report any differences from data submitted by the institutions to the State Auditor, the Legislative Budget Board, and the Governor. The Coordinating Board shall then calculate a new appropriations amount for each institution that reported data in conflict with that verified by the Coordinating Board. These calculations shall then be reported to the Legislative Budget Board, Governor, and the Comptroller of Public Accounts and may be used to revise appropriation authority accordingly. The calculation of revised appropriation amounts shall allow each institution an error rate of up to 2 percent of the biennial appropriations related to the funding formula that utilized those reported variables.
  • In addition, components of educational and general income reported in the institutional requests for legislative appropriations for fiscal years 2024 and 2025 are subject to audit by the State Auditor and Coordinating Board.
  • The State Auditor or Coordinating Board may request the assistance of an institution’s internal auditor in performing the audits described in this section.
  • Justification: Recommend modification to clarify what the 2% reference relates to in regard to the error. This change specifies that each total formula amount is allowed a variance of 2% based on the variable change.
• Sec 39: Language has been struck from consideration.
  • Justification: Recommend deletion. This is controlled by statute under TEC 61.059(r).

Special Provisions Relating Only To Components of Texas State Technical College

• Sec 1: Expenditure of Educational and General Funds: Recognizing that Texas State Technical College may have the opportunity and should be encouraged to attract private contributions, grants, or contracts, and to enter into agreements with private businesses and other agencies of government for purposes not specifically contained in the strategy items above that might require matching funds from TSTC, the Board of Regents of Texas State Technical College is hereby authorized to expend its remaining educational and general funds to meet contribution, contract, or grant-matching requirements only for the following purposes:
  • a. planning and implementing a large-scale job-training program in conjunction with private business and other state agencies;
  • b. acquiring facilities and equipment to carry out a large-scale industrial training program in conjunction with a major employer; and
  • c. additional space and mechanical systems or renovation of existing buildings in accordance with the Campus Master Plans and subject to approval by the Texas Higher Education Coordinating Board as required by law.
  • Justification: Recommend modification related to THECB approval. The agency only collects data on facilities additions and renovations and no longer reviews/approves the projects as that authority rests with an institution’s Board of Regents. The exception to this is TEC 135.02, which requires THECB to approve TSTC’s acceptance or acquisition of land/facilities if it exceeds $300,000 and will be placed on the educational and general building and facilities inventory.

Public Community/Junior Colleges

• Rider 3: Appropriations Eligibility: To be eligible for and to receive an appropriation a public community/junior college must be certified as required by Education Code, Chapter 61, §61.063, and comply with the following provisions:
  • (a) On or before the dates for reporting official enrollments each semester to the Texas Higher Education Coordinating Board, each college will collect in full from each student that is to be counted for state aid purposes the amounts set as tuition by the respective governing boards. Valid contracts with the United States government for instruction of eligible military personnel, and valid contracts with private business and public service-type organizations or institutions such as hospitals, may be considered as collections thereunder, but subject to adjustments after final payment thereof.
  • (b) Each community/junior college must use a registration and financial reporting system which is sufficient to satisfy the audit requirements of the State Auditor and furnish any reports and information as the auditor may require.
  • (c) Each community/junior college must file by December 1 of each fiscal year directly with the Governor, Legislative Budget Board, the Legislative Reference Library, and the Texas Higher Education Coordinating Board, a copy of an annual operating budget, and subsequent amendments thereto, approved by the community/junior college governing board. The operating budget shall be in such form and manner as may be prescribed by the board and/or agency with the advice of the State Auditor providing, however, that each report include departmental operating budgets by function.
  • Justification: Delete sentence that duplicates Texas Education Code §54.0071.
• Rider 21: Language has been struck from consideration.
  • Justification: Recommend deletion. HB 8 has been implemented.
• Rider 22: Public Junior College State Finance Program: Out of the funds appropriated above, and any other funds appropriated for the Public Junior College Finance Program during the 2024-25 biennium, a total of $2,273,191,855 in General Revenue for the 2024- 25 biennium shall represent the sum-certain appropriation to the Public Junior College Finance Program. The total appropriation may not exceed the sum-certain amount. The Commissioner shall make allocations to community college districts under Chapters 61, 130, and 130A based on the following:
  • (a) Base Tier Funding. The Texas Higher Education Coordinating Board shall determine a guaranteed instruction and operation funding level using the statewide basic allotment rate, weighted full-time equivalent students enrolled at the district, and the district’s contact hour funding. The Texas Higher Education Coordinating Board will compare the guaranteed instruction and operations amount to estimated local share amounts to determine the state’s share of base tier of funding.
  • (b) Performance Tier. The Texas Higher Education Coordinating Board shall determine the attainment of measurable outcomes by students of public community/junior colleges for achievement of credentials of value, attainment of 15 semester credit hours of dual credit or dual enrollment courses, eligible transfer to a general academic institution, and eligible participation in a co-enrollment program.
  • (c) Base tier and performance tier allocations shall include applicable weighting in accordance with Chapters 130 and 130A.
  • The Texas Higher Education Coordinating Board shall determine, for fiscal years 2024 and 2025 the basic allotment amounts, contact hour funding, applicable weights, and rates in accordance with Chapters 130 and 130A and legislative appropriation amounts in Strategy A.1.1., Base Tier and Strategy A.1.2, Performance Tier. Rates, weights, and other amounts used in the calculation of funding for the Public Junior College Finance Program are subject to notification of the Legislative Budget Board and the Governor’s Office.
  • The amounts identified in subsections (a) – (c) are used solely to determine the initial annual payments to community college districts. To the extent that amounts provided above differ from a local community college district’s updated data and outcome measures, the Commissioner shall settle-up with local community college district pursuant to Rider 23, Appropriation of Audit Adjustments, Settle-Up Funds and Data Elements and applicable provisions in Chapters 61, 130, and 130A of the Education Code.
  • Notwithstanding any other provision of this Act, the Texas Higher Education Coordinating Board may make transfers as appropriate between Strategy A.1.1, Base Tier, and Strategy A.1.2, Performance Tier. The Commissioner of Higher Education shall notify the Legislative Budget Board and the Governor of any such transfers at least 15 days prior to the transfer.
  • Justification: Updating notification to come from the Commissioner rather than the Board.
• Rider 23: Appropriation of Audit Adjustment, Settle-Up Funds and Data Elements: When reviews and audits of allocations to a community college district reveal the allocations previously made were greater or less than the amounts found to be due, the Texas Higher Education Coordinating Board may recover or pay the sums necessary to adjust to the correct amounts. All such amounts recovered are appropriated for purposes of the Public Junior College State Finance Program, and the amounts necessary to make such additional payments to the local community college district are appropriated from the General Revenue Fund for the same purpose (estimated to be $0). All funds received from Public Junior College State Finance Program as recovery for overpayment pursuant to the provisions of §130A.009 of the Texas Education Code are appropriated to the Coordinating Board for distribution to community college districts for Public Junior College State Finance Program purposes. All unexpended balances on August 31, 2026 are appropriated to the Texas Higher Education Coordinating Board in fiscal year 2027 for distribution to community colleges for the Public Junior College State Finance Program purposes.
• Rider 24: Additional Transfer Authority: Notwithstanding the general provisions of this Act, the Commissioner of Higher Education is authorized to transfer funds from fiscal year 2027 to fiscal year 2026, as necessary to implement the provisions of House Bill 8, only upon the approval of the Legislative Budget Board and the Governor’s Office. The request shall be considered to be approved unless the Legislative Budget Board or the Governor issues a written disapproval within 30 business days after the date on which the staff of the Legislative Budget Board makes its recommendation on the transfer to the Chair of the House Appropriations Committee, Chair of the Senate Finance Committee, Speaker of the House, and Lieutenant Governor.
  • Justification: Update years and remove reference to House Bill 8 as this rider should continue under the new funding system.
• Rider 25: Unexpended Balance Authority: Any unexpended balances of funds appropriated by this rider that will be used for formula funding in Strategy A.1.1., Base Tier and Strategy A.1.2, Performance Tier are appropriated to fiscal year 2027 for the same purpose. It is the intent of the legislature that any unexpended balances of these funds remaining as of August 31, 2027, will be appropriated to the Public Community/Junior Colleges for the fiscal year beginning September 1, 2027, for the same purpose.
  • Justification: Update years and remove reference to House Bill 8 as this rider should continue under the new funding system.

Available Texas University Fund

• Rider 1: Distribution to Eligible Institutions: There is appropriated to each eligible institution for the fiscal year ending August 31, 2027, that portion of the earnings of the Texas University Fund distributed to it by Article VII, Sec. 20 of the Texas Constitution, together with any interest on balances attributable to the eligible institutions. Pursuant to Article VII, Sec. 20 of the Texas Constitution, each eligible institution must use its Available Texas University Fund appropriation only for the support and maintenance of educational and general activities that promote increased research capacity at the institution.
• Rider 3: Language has been struck from consideration.
  • Justification: Recommend deletion. NRUF is no longer in existence.

Article IX

• 17.03: Language has been struck from consideration.
  • Justification: Recommend deletion. THECB is not involved in this process.

Appropriations Spotlight

Comparison of FY 24-25 request to FY 26-27 request

Exceptional Item Request written as EIR

• General Revenue – Decrease from $2,546,437,017 to $2,430,429,000
• GR Dedicated – Decrease from $179,599,591 to $35,534,984
• Federal Funds – Decrease from $94,529,143 to $88,524,112
• Other Funds – Increase from $180,608,865 to $225,981,636
• ALL FUNDS – Decrease from $3,001,174,616 to $2,780,469,732
• EIR – $751,758,607
• EIR FUNDS TOTAL – $751,758,607