HB42

Regular Session

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.

01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Immediate Action Plan

Operational Changes Required

Strategic Ambiguities & Considerations

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02
03

Official Analysis

Bill Text(with markup)


Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
304 Comptroller of Public Accounts, 710 Texas A&M University System Administrative and General Offices, 717 Texas Southern University, 719 Texas State Technical College System Administration, 720 The University of Texas System Administration, 758 Texas State University System, 768 Texas Tech University System Administration, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board, 783 University of Houston System Administration
LBB Staff:
JMc, FV, LBO, CPo, NV
Quick Reference

Frequently Asked Questions

Common questions about HB42

Q

What does Texas HB42 do?

HB42 increases the annual Higher Education Fund (HEF) constitutional appropriation by nearly $200 million (totaling $590. 625 million) starting Fiscal Year 2026. This legislation immediately expands capital budgets for public universities outside the UT and A&M (PUF) systems, creating significant revenue opportunities for construction, finance, and equipment vendors, while imposing strict "delivery-first" invoicing requirements for payment.

Q

Who authored HB42?

HB42 was authored by Texas Representative Terry Wilson during the Regular Session.

Q

When was HB42 signed into law?

HB42 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB42?

HB42 is enforced by Comptroller of Public Accounts, Texas Higher Education Coordinating Board and University System Boards of Regents.

Q

How urgent is compliance with HB42?

The compliance urgency for HB42 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of HB42?

The cost impact of HB42 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB42 address?

HB42 addresses topics including education, education--higher, education--higher--finance, state finances and state finances--appropriations.

Legislative data provided by LegiScanLast updated: November 25, 2025

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