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Wednesday, December 17, 2025 at 8:48 AM
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Five ways a funding overhaul has transformed Texas community colleges

Community colleges in 2023 celebrated a long-awaited investment from the Texas Legislature, positioning Texas to lead the country in connecting young people to the workforce.

That year, state legislators reimagined how community colleges are financed with House Bill 8. The old funding formula awarded schools based on enrollment. Schools now have to see their students through to graduation to get money: The new formula ties state dollars to degree and certificate completions, transfers to fouryear universities and high schoolers’ participation in dual credit courses.

The effort was born out of state leaders’ desire to better prepare young Texans for the workforce. By 2030, at least 60% of jobs in Texas will require a postsecondary credential, and yet, less than 40% of students earn a degree or certificate within six years of graduating high school. For students, a postsecondary credential often leads to higher wages and increased economic and social mobility.

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