The bill, H.B. No. 281, aims to enhance the review, funding, and continuation of degree and certificate programs at public institutions of higher education in Texas based on specific performance standards. It amends existing provisions in the Education Code, mandating that the board shall review the number of degrees or certificates awarded every five years, rather than at the board's discretion. Additionally, it establishes a new section that requires the board to evaluate programs based on median student loan debt as a percentage of median annual earnings for graduates, with specific timeframes for undergraduate, master's, and doctoral programs. The bill introduces a performance rating system categorizing programs as "reward," "monitor," "sanction," or "sunset" based on their financial metrics.

Furthermore, the bill stipulates that programs receiving a "sanction" or "sunset" rating cannot utilize certain state funding for the first fiscal biennium following the rating. Institutions with programs rated as "sunset" must cease enrollment of new students and allow current students to complete their studies, while also informing them of the program's status. The bill also includes provisions for exceptions if the program is essential for fulfilling core curriculum requirements. The changes are set to take effect on September 1, 2025.

Statutes affected:
Introduced: Education Code 61.0512, Education Code 61.054 (Education Code 61)