The Texas Senate Committee on Higher Education convened on July 28‑29, 2026 to examine the implementation of Senate Bill 37, a 2025 law that expanded governing‑board authority over university endowments and curricula. Lawmakers heard testimony from the University of Texas System and other state universities about course consolidations and funding allocations.
The committee’s Tuesday hearing focused on how public universities are applying SB 37, which granted boards broader discretion to reallocate endowment earnings and to modify academic programs without prior state approval [1]. The Wednesday session continued the discussion, emphasizing the University of Texas System’s use of state‑allocated funds to support student tuition assistance under the new authority [1].
Senate Bill 37, enacted by the 89th Texas Legislature in 2025, authorizes governing boards of public universities to adjust course offerings, merge programs, and direct endowment income toward institutional priorities [2]. Since its passage, multiple university systems have reported consolidating majors, eliminating duplicate courses, and redirecting endowment proceeds to meet budget shortfalls [2]. Legal challenges to the bill’s provisions remain pending in state courts [2].
Legislative Review of SB 37 Implementation
During the July 28‑29 hearings, committee members questioned senior officials from the UT System about the criteria used to determine which courses would be merged or discontinued [1]. The UT System indicated that decisions were guided by enrollment trends, labor‑market data, and the need to preserve financial stability of its endowment [1].
Representatives from other Texas universities, including Texas A&M University System and the Texas State University System, provided parallel testimony describing similar consolidation efforts across their campuses [2]. These institutions reported that, under SB 37, they have eliminated up to 12 percent of duplicate lower‑division courses in recent semesters, citing overlapping content and declining enrollment as primary factors [2].
The committee also reviewed the UT System’s allocation of a newly authorized $150 million from state‑funded endowment earnings to expand tuition‑waiver programs for low‑income students [1].
The committee also reviewed the UT System’s allocation of a newly authorized $150 million from state‑funded endowment earnings to expand tuition‑waiver programs for low‑income students [1]. Lawmakers requested documentation of how the funds would be distributed among the system’s 14 institutions and the timeline for disbursement [1].
Immediate Effects on Students and Institutions
Texas Senate Higher Education Committee Holds Hearings on Senate Bill 37 and University Endowments
The ongoing course‑review process has resulted in the removal of several undergraduate classes in fields such as liberal arts, basic sciences, and business administration [2]. Students currently enrolled in affected courses have been offered placement in alternative sections or transferred to equivalent programs at partner institutions [2].
University financial officers reported that the ability to direct endowment income toward student aid has allowed some campuses to increase the number of merit‑based scholarships by an average of 5 percent for the 2026‑27 academic year [1]. However, the redirection of endowment earnings also means reduced investment in faculty research and capital projects, according to budget summaries presented to the committee [1].
Legal challenges filed by faculty associations and advocacy groups argue that SB 37’s expanded board authority may contravene state statutes governing endowment use [2]. The lawsuits are pending, and the committee noted that any court rulings could affect the pace of further course consolidations [2].
Outlook for Texas Higher Education
The hearings concluded without immediate legislative amendments to SB 37, but committee chairs indicated that ongoing monitoring of endowment allocations and curriculum changes will continue throughout the 2026 legislative session [1]. Universities are expected to submit quarterly reports on course adjustments and endowment spending to the committee for review [1].
Stakeholders, including prospective students, current undergraduates, and faculty, are advised to consult their institutions’ registrars and financial aid offices for updates on course availability and scholarship opportunities arising from the bill’s provisions [2].
Key Facts
University financial officers reported that the ability to direct endowment income toward student aid has allowed some campuses to increase the number of merit‑based scholarships by an average of 5 percent for the 2026‑27 academic year [1].
What: Texas Senate Higher Education Committee examined the implementation of SB 37, which expands board authority over university endowments and curricula.
When: Hearings held July 28‑29, 2026; SB 37 enacted in 2025.
The Baboquivari Unified School District in Arizona completed a 41-unit complex in July 2026, offering two-bedroom apartments at $300 per month.[1] The core
NewsNews
