H.B. No. 42 amends the Education Code to adjust the annual constitutional appropriation for various higher education institutions in Texas, effective from the fiscal year ending August 31, 2026. The bill increases the total annual appropriation to $590,625,000, up from the previous amount of $393.75 million. It specifies allocations for numerous institutions, including the University of North Texas, Texas State University System, Texas Tech University System, and others, with detailed funding amounts for each institution. Additionally, it introduces a new subsection allowing governing boards to use these funds for paying principal and interest on bonds issued for purposes outlined in the Texas Constitution.

The bill also repeals a previous section of the Education Code and establishes that the new funding allocations will apply starting from the fiscal year beginning September 1, 2025. Furthermore, it includes a contingency clause that reallocates funds to the University of Houston–Victoria if it is transferred to The Texas A&M University System. The act is set to take effect on September 1, 2025, contingent upon legislative approval.

Statutes affected:
Introduced: Education Code 62.021, Education Code 62.024, Education Code 62.027 (Education Code 62)
House Committee Report: Education Code 62.021, Education Code 62.024, Education Code 62.027 (Education Code 62)
Engrossed: Education Code 62.021, Education Code 62.024, Education Code 62.027 (Education Code 62)
Senate Committee Report: Education Code 62.021, Education Code 62.024, Education Code 62.027 (Education Code 62)
Enrolled: Education Code 62.021, Education Code 62.024, Education Code 62.027 (Education Code 62)