SB2066

Regular Session

Relating to the repeal of the Texas Research Incentive Program.

LowStandard timeline

Low Cost

Effective:2025-09-01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025 (per Bill Text).
Compliance Deadline: Immediate. While the repeal is effective in September, the funding queue is effectively closed. Appropriations (S.B. 1) limit backlog funding to gifts certified prior to January 2025.
Agency Rulemaking: The Texas Higher Education Coordinating Board (THECB) is expected to issue guidance regarding the distribution of final "backlog" appropriations. Watch for guidance on proration if appropriated funds do not cover the total certified backlog.

Immediate Action Plan

Audit Pending Gifts: Generate a report of all university donations made in the last 24 months that have not yet received their state match.
Secure Certification Proof: Demand proof of THECB certification for all pending gifts to ensure eligibility for the final "backlog" payout.
Revise ROI Models: Strip all "state match" assumptions from future R&D budget proposals effective immediately.
Issue Waivers: If you intend to fulfill a pledge despite the loss of the match, issue a formal waiver of the "matching condition" to the university to prevent legal ambiguity regarding the gift's status.

Operational Changes Required

Contracts

Gift Agreements: Review all active pledge agreements with emerging research universities (e.g., Texas Tech, UH, Texas State). If future tranches are legally contingent on the receipt of TRIP matching funds, you must exercise rights to terminate or renegotiate the pledge.
Research Sponsored Agreements (RSAs): Identify RSAs where the Scope of Work relies on equipment or personnel funded by the state match. These contracts require immediate amendment to reduce scope or increase corporate contribution to cover the shortfall.

Hiring/Training

Government Relations & CSR: Brief corporate social responsibility teams and university relations officers immediately. They must stop using TRIP leverage in internal proposals for university funding.

Reporting & Record-Keeping

Backlog Certification: For donations made prior to January 2025, obtain written confirmation from the university that the gift was certified by THECB and is included in the S.B. 1 backlog funding request.
Dead Zone Documentation: Flag any donations made between January 2025 and September 2025. These are likely ineligible for backlog funding *and* ineligible for future matching.

Fees & Costs

Budget Impact: There are no new regulatory fees. However, R&D projects relying on leverage will see an effective cost increase of 50% to 100% to achieve the same funding levels previously subsidized by the state.

Strategic Ambiguities & Considerations

Effective Date Conflict: The Bill text states an effective date of September 1, 2025, while the Legislative Budget Board's Fiscal Note cites September 1, 2027. Counsel’s Directive: Operate based on the 2025 date in the statute. Do not plan on a two-year sunset period unless the bill text is amended to match the fiscal note.
Backlog Proration: It remains unclear how THECB will distribute funds if the S.B. 1 appropriation is insufficient to cover the entire pre-January 2025 backlog. Agency rulemaking will determine if this is handled via proration or a first-come, first-served model.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsEducation Education--higher Education--higher--finance Education--higher--institutions & Programs Research & Development

Official Analysis

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BILL ANALYSIS

Senate Research Center	S.B. 2066
89R9184 JTZ-D	By: Huffman
	Finance
	3/26/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The purpose of the Texas Research Inventive Program (TRIP) is to provide matching funds to assist eligible public institutions of higher education in leveraging private gifts for the enhancement of research productivity and faculty recruitment.

S.B. 1, the appropriations bill, includes contingency funding for TRIP to address the backlog in eligible unmatched donations received through the program and certified by the Texas Higher Education Coordinating Board (THECB) as of THECB's January 2025 quarterly board meeting, if the program is repealed through legislation. S.B. 2066 repeals the program.

As proposed, S.B. 2066 amends current law relating to the repeal of the Texas Research Incentive Program.

RULEMAKING AUTHORITY

Rulemaking authority previously granted to the Texas Higher Education Coordinating Board is rescinded in SECTION 1 (Section 62.124, Education Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Repealer: Subchapter F (Texas Research Incentive Program (TRIP)), Chapter 62 (Constitutional and Statutory Funds to Support Institutions of Higher Education), Education Code.

SECTION 2. Effective date: September 1, 2027.

Senate Authors

Sen. Joan HuffmanRepublican · Primary Author

House Sponsor

Rep. Greg BonnenRepublican · Primary Sponsor

Bill Text(with markup)

S.B. No. 2066

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the repeal of the Texas Research Incentive Program.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter F, Chapter 62, Education Code, is
	repealed.
	SECTION 2. This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 8, 2025

TO:	Honorable Joan Huffman, Chair, Senate Committee on Finance

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB2066 by Huffman (Relating to the repeal of the Texas Research Incentive Program.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would repeal the Texas Research Incentive Program, which is administered by the Higher Education Coordinating Board, effective September 1, 2027. The program provides matching funds to assist eligible institutions in leveraging private gifts for the enhancement of research productivity and faculty recruitment and grant amounts are dependent on funds appropriated for the purposes of the program.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

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, KK, LBO, GO, FV, NV

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Frequently Asked Questions

Common questions about SB2066

What does Texas SB2066 do?

Senate Bill 2066 repeals the Texas Research Incentive Program (TRIP), permanently eliminating the statutory mechanism for state matching funds on private donations to emerging research universities. Corporate donors and R&D partners must immediately remove state matching multipliers from ROI models and renegotiate gift agreements contingent upon these funds. Implementation Timeline Effective Date: September 1, 2025 (per Bill Text).

Who authored SB2066?

SB2066 was authored by Texas Senator Joan Huffman during the Regular Session.

When was SB2066 signed into law?

SB2066 was signed into law by Governor Greg Abbott on May 19, 2025.

How urgent is compliance with SB2066?

The compliance urgency for SB2066 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB2066?

The cost impact of SB2066 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does SB2066 address?

SB2066 addresses topics including education, education--higher, education--higher--finance, education--higher--institutions & programs and research & development.

Legislative data provided by LegiScanLast updated: November 25, 2025

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