Relating to the amount and allocation of the annual constitutional appropriation to certain agencies and institutions of higher education and to the permissible uses of that money.

89th Legislature (2025) Introduced by Salman Bhojani and 13 co-sponsors

Texas HB 42 restructures constitutional appropriations to state agencies and universities and limits how those funds may be spent, effective September 1, 2025.

Effective on 9/1/25

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Legislative bill overview

HB 42 modifies how Texas allocates its constitutionally-mandated annual appropriations to certain state agencies and higher education institutions, and redefines what those funds can be used for. The bill became effective September 1, 2025, after receiving bipartisan sponsorship and gubernatorial approval.

Why is this important

Constitutional appropriations are guaranteed funding streams that bypass normal budget negotiations, making changes to them significant for both state finances and institutional planning. Altering permissible uses affects how universities and agencies can deploy resources across operations, potentially impacting everything from research funding to administrative costs.

Potential points of contention

Funding allocation shifts: Changes in how money is distributed between institutions could advantage some universities while disadvantaging others, creating winners and losers in higher education

Restricted spending flexibility: Narrowing permissible uses might prevent agencies from responding to emerging needs or reprioritizing funds during fiscal challenges

Institutional autonomy vs. state control: Stricter definitions of how funds can be spent represent greater state oversight over traditionally independent higher education decision-making