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 significant increases for the University of North Texas, Texas State University, and Texas Tech University, among others. The bill also introduces a new provision allowing governing boards to use these funds for paying the principal and interest on bonds issued for purposes outlined in the Texas Constitution.

Additionally, the bill repeals a previous section of the Education Code and establishes that the new allocation amounts will apply starting from the fiscal year beginning September 1, 2025. It includes a contingency clause that ties the allocation for the University of Houston–Victoria to its potential transfer to The Texas A&M University System, contingent on the passage of related legislation. The act is set to take effect on September 1, 2025, unless it requires a two-thirds legislative approval for certain sections.

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)