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 by establishing specific performance standards. It mandates that the board shall review the number of degrees or certificates awarded every five years, rather than at the board's discretion. Additionally, the bill introduces a new section, 61.05123, which outlines performance standards based on the median student loan debt as a percentage of median annual earnings for program graduates. Programs will be assigned performance ratings of "reward," "monitor," "sanction," or "sunset," depending on their financial outcomes, with specific consequences for those rated as "sanction" or "sunset."

Furthermore, the bill stipulates that institutions may not use state funding for programs that receive a "sanction" or "sunset" rating, and those with a "sunset" rating must cease enrollment of new students and consolidate or eliminate the program after current students graduate or leave. The bill also includes provisions to ensure that core curriculum courses are not affected by these ratings. 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)