House Bill 8: A New Way of Funding Texas Community Colleges

What is HB 8?

In 2023, the 88th Texas Legislature unanimously approved historic legislation that transforms how Texas funds its 50 community college districts. House Bill 8 replaces a static funding model based on the number of courses and credit hours offered with a dynamic, performance-based model tied to specific outcomes.

Instead of competing against one another for state dollars, each community college is now challenging itself to earn additional funding by educating more students and awarding credentials of value that align with Texas’s workforce needs today and tomorrow.

What are the Outcomes?

December 2022

Texas Commission on Community College Finance submitted recommendations for a new funding system to the Texas Legislature.

May 2023

House and Senate approved House Bill 8.

June 2023

Gov. Abbott signed House Bill 8 into law.

September 2023

First 50% of formula funding distributed to districts.

January 2024

Texas Higher Education Coordinating Board (THECB) adopts finance rules for 2023-2024 academic year.

February 2024

Next 50% of formula funding will be distributed to districts.

April 2024

THECB adopts rules for the 2023-2024 academic year.

June 2024

Final 25% of formula funding distributed to districts.

Texas Higher Education Coordinating Board maintains a page of questions and answers regarding the formula funding provisions of House Bill (HB) 8. It will be updated as additional questions are received.

HB8 Frequently Asked Questions

Read the text of the HB8 legislation on the Texas Legislature Online. All of the various reports, anlysis, and summaries are also contained here.

'Building Talent Strong Texas,' is a detailed, insightful publication by the Texas Higher Education Coordinating Board that outlines the key strategies and goals for enhancing Texas's educational and workforce development.

Read the State's Higher Education Strategic Plan

Financial Aid for Swift Transfer (FAST)

The Financial Aid for Swift Transfer program (FAST) pays colleges to provide dual credit courses at no cost to high school students on free and reduced-price lunches. It reimburses colleges today and sets them up for the future when those students complete their dual credit courses, transfer, or earn credentials of value

FAST Participation

Base Tier Funding

Most Community Colleges will pay for their Instruction and Operations (I&O) entirely through property taxes and tuition. But for districts that can’t meet those needs through local revenue alone, the state will provide Base Tier Funding.

Base Tier "101 Primer"

Performance Tier Funding

95% of dollars distributed to Community Colleges through new state formulas are based on measurable outcomes. All colleges are eligible for these performance-based funds — earning specific dollar amounts for specific outcomes, with extra weight for serving students who are academically disadvantaged, economically disadvantaged, or adult learners (25 years or older).

Learn more

Credentials of Value

Credentials of value equip students for strong career trajectories, improve their earning potential, and align with high-demand jobs offered by Texas employers. A credential of value empowers a student to earn enough within 10 years to pay for the cost of their education and surpass the earnings of a typical high school graduate.

Learn more

Standing Advisory Committee

The Standing Advisory Committee (SAC) is made up of community college leaders representing a diverse mix of different-sized colleges from around the state. Its role is to consult with and provide guidance to THECB as it develops rules and policies related to HB 8.

Learn more

Contact Information

In the News

Texas Tribune

Houston Chronicle

The Dallas Morning News

KTSM

Austin American Statesman