Texas Colleges Must Cut State Budget Requests by 3%

Texas colleges and universities were directed to reduce their state budget requests by 3% for the upcoming 2028-2029 biennium. This directive comes from the Texas Higher Education Coordinating Board (THECB) and affects all state-funded institutions, including general academic institutions and health-related institutions. The reduction applies to the base funding requests, excluding specific programs like the Texas Grant Program and the Texas Research Incentive Program, which are funded through separate legislative appropriations.

The mandate for budget cuts was communicated in a memo sent to college and university presidents on July 19, 2026. The THECB stated that this measure is necessary to align with the state's fiscal projections and to ensure responsible stewardship of taxpayer funds. Institutions are required to submit their revised budget requests by September 1, 2026. The specific impact of these cuts will vary by institution, depending on their reliance on state funding and the nature of their programs.

This reduction in state funding requests could lead to a reevaluation of institutional priorities and potentially impact the scope of academic programs, research initiatives, and student support services. While the directive is for a 3% reduction in requests, the actual impact on institutional budgets will depend on the final legislative appropriations for the biennium. The THECB has indicated that it will provide further guidance and support to institutions as they navigate this process. The memo also noted that institutions should prioritize core academic missions and essential student services when making adjustments.