THECB committee reviews fiscal report, loan and bond outlook and adopts operating budget for 2026–27

Anthony Infantini, THECB chief financial officer, presented a nine‑month fiscal year 2025 financial report to the Agency Operations Committee on July 23, and the committee voted to adopt the agency operating budget for fiscal years 2026–27.

Infantini summarized the agency’s cash and budget posture, noting budget adjustments that move funds from year one of the biennium to year two and that staff are monitoring cash availability for the remainder of the year. He said loan demand has been lower this year, in part because of recently implemented debt limits, and that the agency completed a bond sale for about $100,000,000 this quarter. He told the committee the tax‑exempt status of the bonds “does remain, as of now,” but that federal legislation introduced uncertainty earlier in the process.

On student loans, Infantini said the agency will be able to offer the same fixed rate for the 2025–26 academic year: “a fixed rate of 6.3% with the option for borrowers to lower that to 6 5% by electing automated automatic payments,” he said. He described how callable bonds and market conditions could create opportunities to lower loan rates in the future through refunding or by using cash on hand instead of issuing new bonds.

The committee approved the agency operating budget for FY 2026–27. Infantini said the proposed operating budget starts from the agency’s legislative appropriations request and that the final enacted budget reflects significant additions, including funding for financial aid and research. He said the final approved operating budget for the coming biennium will total just over $3.3 billion and that the increase reflects both pass‑through program funding and new agency operational responsibilities.

Separately, the committee approved an interagency contract cap with the Texas Department of Information Resources (DIR) for data‑center services. Infantini recommended a $25,000,000 limit for the biennium to accommodate mandatory data‑center procurements and to allow technology capital items that must be procured through DIR to pass through the data‑center program without additional appropriation steps.

Why it matters: The financial presentation and votes set THECB’s authorized spending and contracting authority for the next biennium, confirm student loan terms for the coming academic year, and establish a procurement pathway for technology investments that may be required to flow through DIR.