Houston

Texas Legislature Eyes $400 Million in Higher Education Cuts Amid $24 Billion State Surplus

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Published on February 27, 2025
Texas Legislature Eyes $400 Million in Higher Education Cuts Amid $24 Billion State SurplusSource: Google Street View

Texas has a $24 billion surplus, but the state's legislature has proposed budget cuts that could significantly reduce funding for higher education. Both the House and Senate versions of the budget suggest eliminating the institutional enhancement fund, which provided $423 million to Texas universities in the last budget cycle, according to Click2Houston.

The lieutenant governor's proposed budget cuts aim to reduce funding for higher education institutions, claiming that universities have shifted focus to diversity, equity, and inclusion initiatives. Julie Kopycinski, a government relations staffer at Texas A&M, warned about these cuts, which were later confirmed by The Texas Tribune. If the budget is approved, Texas A&M could lose $52 million, the University of Texas at Austin nearly $40 million, and both Texas Tech University and the University of Houston could face cuts of around $50 million each. Health science centers and technical colleges are not affected by these cuts. Texas A&M University System Chancellor John Sharp stated that losing the institutional enhancement fund would have a significant impact on faculty and student teaching resources, saying, "It will have a heck of an impact."

Texas Tech University President Lawrence Schovanec explained that most institutional enhancement funding, which makes up 3% of total higher education funding, is used for initiatives like the Raider Success Hub to improve academic outcomes and graduation rates. Rep. Carl Tepper referred to it as a "slush fund" during a House committee discussion, asking for more transparency on how universities use the funds, as stated by Click2Houston. Sen. Joan Huffman also called for more clarity on the purpose of the growing fund. This discussion is part of a larger conversation about higher education funding in Texas, including Lt. Gov. Dan Patrick's 2023 efforts to ban diversity, equity, and inclusion programs in public universities. Jaime Puente of Every Texan said these efforts aim to use financial influence to shape higher education in Texas.