Higher Education Fund

HEF money can be spent on the acquisition and improvement of land; on the construction, maintenance, improvement, and furnishing of buildings; on capital equipment such as computers and research instruments; and on library acquisitions.

HEF was established in 1985 by amendment to the Texas Constitution as a source of money parallel to the Permanent University Fund, which only benefits University of Texas at Austin, Texas A&M at College Station, and Prairie View A&M. (and other schools within the UT and A&M systems). The constitutional language [Article 7 17(a)] creates 10-year cycles, during which the Legislature can authorize the increase of appropriations to HEF once and their reallocation twice. The original appropriation was for $100 million annually. It was increased to $175 million in 2003.

In 2005, the Legislature voted to increase the annual appropriation to $262.5 beginning in 2007.