Community College Finance Overview

Introduction

Texas transformed the way it funds community colleges with the passage of House Bill 8 in 2023 and Senate Bill 1786 in 2025. These investments in higher education shifted Texas away from a static system tied primarily to students’ time in class to a modern and dynamic outcomes-based formula that reflects the needs of our world-class economy.

Aligned with our state’s workforce needs and strategic plan for higher education, Building a Talent Strong Texas, the Texas community college finance (CCF) system rewards colleges for their progress toward our state’s higher educational goals while also ensuring colleges have access to the resources needed to support their mission to educate and train the workforce of the future. The outcomes driving the community college finance model include:

• The number of high school students who complete 15 semester credit hours in dual credit or dual enrollment courses;
• Community college students who transfer successfully to in-state public or private four-year universities or complete 15 semester credit hours in a structured co-enrollment program; and
• Community college students who earn credentials of value, which offer purpose in the economy, value in the labor market, and opportunities for good jobs and meaningful careers.

Additionally, these outcomes are weighted to recognize the higher costs to colleges when educating students from economically and academically disadvantaged backgrounds or adult learners.

Use the links below to learn more about specific aspects of the program, including the community college finance model, tools, and frequently asked questions.

Information about the Fast Application for Swift Transfer (FAST) program, which was also part of the HB 8 legislation, is available here.