Higher Education Affordability package
In light of an unprecedented surplus of expected revenue for the biennium, the 2024-25 budget includes a "Higher Education Affordability" package. Through this, Texas is investing nearly $700 million toward five strategies to keep the costs of higher education predictable and affordable for students and families.
As a result of this new funding, public institutions of higher education in Texas will keep tuition flat for the next two academic years (Sept. 1, 2023 – Aug. 31, 2025).
We thank the Texas Legislature for this investment that will help to keep tuition affordable and predictable for students and families.
Read more on the components of the package below.
1. Formula funding — In addition to the base funding provided for the Instruction and Operations Formula, the Higher Education Affordability package provided an additional $263.8 million statewide. (Read more on formula funding below.)
2. Research — Three sources of funding for university research received major boosts in the 2024-25 budget. Through the Higher Education Affordability package, these funds (the Texas Research University Fund; the Core Research Support Fund; and the Comprehensive Regional University Fund) received an additional $18.66 million over the 2022-23 budget, proportionately divided.
3. Higher education employees' health insurance — Over the last several years, the state's share of health insurance premiums for employees of higher education institutions has declined, requiring Texas A&M University and other institutions to cover additional costs. Currently, the state only provides higher education employees 79.2% of the amount provided for other (non-higher education) employees in the Employee Retirement System (ERS) of Texas. The 2024-25 budget provides an additional $159.67 million statewide, bringing the coverage for these employees to 88.6% of the amount provided for non-higher education employees' ERS premium.
4. Hazlewood Legacy Program — The Hazlewood Act and the Hazlewood Legacy Program provides tuition waivers to eligible veterans and their dependents at Texas public institutions of higher education. Texas A&M proudly serves these veterans and their families; the waivers, however, are largely unfunded mandates on institutions. In FY 2021, for example, the state provided $15 million statewide to reimburse institutions for these costs; but the Texas A&M University System institutions alone waived over $44 million that year and was only reimbursed for 13.3% of this cost.
In the 2024-25 budget, the state will provide nearly $215 million to help reimburse institutions for the costs of the Hazlewood Legacy Program tuition waivers. This represents 72% of the statewide costs to institutions in 2022.
5. Performance-based funding for Comprehensive Regional Universities — Texas is home to 27 Comprehensive Regional Universities (CRUs), including Texas A&M University at Galveston. The 87th Legislature passed SB 1295, providing performance-based funds aimed at increasing graduation rates and student success at these institutions. CRUs serve approximately 40% of university students in Texas, particularly in rural, at-risk areas. To continue this program, the 88th Legislature provided $71.5 million in the Higher Education Affordability package.
