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 this new 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 public 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 Fast Application for Swift Transfer (FAST) and our community college finance model and tools.
Resources
FAST Program
Dig into details, requirements, and need-to-knows for the new FAST dual credit program
Formula Funding
Access tools information about the structure of the base and performance tiers used in the funding model
FAQs
Find answers to commonly asked questions
FY26 Office Hours
The Community College Finance team will host monthly office hours beginning on October 30, 2025, from 10-11am Central time and continuing once a month through March 2026.
During these sessions staff from the THECB finance and data teams will be available to respond to any questions related to the community college finance system. The sessions are not topic-specific, and we encourage attendees to submit questions in advance to CCFinance@highered.texas.gov.
Pre-registration is required for each session you wish to attend: https://highered-texas.zoomgov.com/meeting/register/dV8HzlBtQa61J7NpJZaKCQ
NOTE: If you plan to attend more than one session, please be sure to register for each session.
- October 30, 2025 – 10-11am
- November 20, 2025 – 10-11am
- December 18, 2025 – 10-11am
- January 15, 2026 – 10-11am
- February 19, 2026 – 10-11am
- March 19, 2026 – 10-11am
CCF Communications
The funding models, tools, and credential of value target years have moved to our Formula Funding page.
FY 2026 Funding
Memorandums
- Final FY2026 Funding Runs, Funding Models, and Other Updates (October 14, 2025)
- Update on Timing of Community College Payment (July 9, 2025)
- Release of FY2026 Funding Runs and Funding Model (June 25, 2025)
- Community College Finance High-Demand Fields Essential Occupations Petition (April 25, 2025)
Informational Recordings
FY 2025 Funding
Memorandums
- Proposed FY 25 Changes to Community College Finance Rules (January 26, 2024)
- Draft Funding Formula Models for FY 25 (May 10, 2024)
- Detailed Information on Draft FY25 Formula Model (May 10, 2024)
- Updated Draft Funding Formula Model and Tools for FY 25 (June 14, 2024)
- [Corrected Links] Final FY2025 Formula Funding Runs and Legislative Appropriations Request (LAR) Resubmission Update (September 11, 2024)
- Updated FY25 Supplemental Request, Funding Formula Model, Dynamic Adjustment (February 13, 2025)
Board Presentations on FY 2025 Administrative Rules
- Community College Finance Rule-Making Board Presentation January 2024
- Community College Finance Rule-Making Board Presentation April 2024
- Community College Finance Rule-Making Board Presentation July 2024
FY 2024 Funding
Memorandums
- Announcing Draft Formula Funding Models for FY 24 (July 14, 2023)
- Detailed Information on Draft FY 24 Formula Model (July 14, 2023)
- Important: Community College Finance Reform – What You Need to Know (June 8, 2023)
Legislative & Rulemaking Timeline
The CCF program was a multi-year legislative achievement. See below for a brief history of its development.
Aug. 7, 2025
Consideration and adoption of FY 26 regular rules
May 27, 2025
Senate Bill 1786 signed into law
Jul. 25, 2024
Consideration and adoption of additional FY 25 regular rules
Apr. 25, 2024
Consideration and adoption of FY 25 regular rules
Jan. 25, 2024
Consideration and adoption of FY 24 regular rules
Sep. 1, 2023
House Bill 8 went into effect
Aug. 22, 2023
Consideration and adoption of FY 24 emergency rules
Jul. 27, 2023
Jun. 9, 2023
Nov. 17, 2022
The Texas Commission on Community College Finance delivered a report recommending significant changes to the way Texas funds its community colleges. Read the report.
May 7, 2021
Texas Legislature passed SB 1230 establishing the Commission on Community College Finance
Contact
General inquiries regarding HB8 and Community College Finance should be sent to Glenna Bruun, Associate Commissioner for Public Affairs.
For technical assistance with the community college finance program, contact us through our CCF mailbox.