89th Legislature

SB 37

Overall Vote Recommendation
Vote No; Amend
Principle Criteria
Free Enterprise
Property Rights
Personal Responsibility
Limited Government
Individual Liberty
Digest

SB 37 proposes significant changes to the governance and oversight of public institutions of higher education in Texas. The legislation introduces a structured, recurring review process for the general education curriculum at each institution, requiring governing boards to evaluate courses at least once every five years. This review must ensure that curricula are foundational, relevant to civic and professional life, aligned with workforce needs, and free from content that promotes racial, gender, ethnic, or religious superiority. Institutions must also submit annual updates on curriculum changes, which the governing board can overturn.

The bill also mandates a formal process to evaluate minor degree and certificate programs for enrollment viability and workforce demand. Programs lacking sufficient enrollment or industry justification may be consolidated or eliminated, with final approval resting with the institution’s governing board. Programs in operation for fewer than five years are exempt from this review.

In addition, SB 37 outlines governance reforms including the establishment or oversight of faculty councils or senates, required training for members of institutional governing boards, and the creation of a Texas Higher Education Coordinating Board Office of the Ombudsman. This new office is tasked with addressing internal concerns and ensuring compliance with state oversight requirements, further strengthening state-level influence over academic institutions.

The bill reflects an overarching goal of aligning higher education outputs with economic and civic needs while also asserting increased state control over academic policy and governance.

The Senate engrossed version of SB 37 introduced significant expansions and structural changes that go beyond the House Committee Substitute. While both versions emphasize curriculum review and institutional accountability, the Senate version asserted a much broader state role in academic governance. One of the most prominent differences was the creation of a comprehensive “degree program value rating” system overseen by the Texas Higher Education Coordinating Board. This system evaluates programs based on return on investment and student debt, mandating closure or redesign of underperforming programs—provisions absent from the House version.

Another major difference lies in the oversight of faculty governance and hiring. The Senate version granted governing boards sweeping authority to approve or deny tenured faculty postings in certain academic fields and to overturn campus hiring decisions for provosts and deans. It also outlined strict regulatory standards for faculty councils or senates, limiting their size, scope, and authority. These councils are reclassified as advisory-only bodies, and any that fail to meet the new criteria are automatically dissolved by 2025 unless formally ratified—elements not found in the House substitute.

Additionally, the Senate engrossed version established a new Office of the Ombudsman with investigative authority and the power to refer unresolved compliance issues to the attorney general, potentially leading to funding penalties for institutions. This enforcement mechanism, along with a temporary core curriculum advisory committee charged with simplifying course offerings statewide by 2027, adds further layers of centralized control not present in the House version. Overall, the Senate bill reflected a stronger push for top-down governance, tighter control over academic direction, and reduced faculty influence in institutional decision-making.

Author
Brandon Creighton
Co-Author
Paul Bettencourt
Brian Birdwell
Brent Hagenbuch
Bryan Hughes
Mayes Middleton
Charles Schwertner
Sponsor
Matthew Shaheen
Fiscal Notes

According to the Legislative Budget Board (LBB), the fiscal implications of SB 37 reflect a projected net cost of approximately $1.57 million to General Revenue funds over the 2026–2027 biennium. The majority of this cost stems from the establishment and operation of the Texas Higher Education Coordinating Board’s new Office of the Ombudsman, which is tasked with investigating complaints and monitoring institutional compliance with the bill’s requirements.

To support the Ombudsman’s activities, the Higher Education Coordinating Board would need to hire five full-time employees, including an ombudsman, two compliance analysts, a general counsel, and a legal assistant. These positions would handle complaint intake, legal review, investigations, and enforcement. The ongoing annual cost for these roles—including salaries, benefits, and related operating expenses—is estimated at $786,790 per year beginning in fiscal year 2026.

Importantly, the fiscal note assumes that any compliance or implementation costs incurred by public higher education institutions themselves, including tasks such as curriculum reviews, faculty council restructuring, and reporting, could be absorbed within their existing budgets. Thus, while the bill creates a measurable impact at the state agency level, it is not expected to generate significant fiscal burdens for local institutions or units of government.

Vote Recommendation Notes

SB 37 proposes a wide-ranging restructuring of public higher education governance in Texas, driven by concerns over transparency, ideological bias, and misalignment between university priorities and state workforce needs. It introduces new mandates for governing board oversight of curriculum and hiring, requires academic program reviews based on return-on-investment (ROI) metrics, and establishes a centralized Office of the Ombudsman to monitor compliance and enforce penalties. While the bill’s goals of accountability and efficiency are understandable and even laudable, several of its core provisions conflict directly with foundational liberty principles, and as such, Texas Policy Research recommends that lawmakers vote NO on SB 37 unless amended as described below.

The most serious concern lies in the bill’s restriction of general education content. By prohibiting instruction in “identity politics” or “theories of systemic oppression,” the legislation imposes an ideologically selective content filter that risks violating academic freedom and First Amendment protections in public institutions. These provisions are vaguely worded and could chill speech in classrooms, discouraging discussion of legitimate, often complex topics in political science, history, sociology, and law. Whether one agrees with these frameworks or not is immaterial: the constitutional and philosophical imperative is to protect the free exchange of ideas.

Indeed, this recommendation is rooted in a core liberty principle: individual liberty must be preserved even when it protects speech or ideas we personally abhor. Philosophically and constitutionally, liberty is not upheld by banning ideas we dislike—it is upheld by defending the process by which all ideas can be examined, challenged, or affirmed. Higher education institutions, especially public ones, must remain spaces for open inquiry. Suppressing even deeply controversial views sets a dangerous precedent that undermines the liberty we seek to protect.

The bill also undermines limited government by expanding state power through the Ombudsman’s Office, which holds broad investigatory and enforcement authority. These powers, combined with top-down curriculum control, represent an increase in centralized bureaucracy that exceeds legitimate oversight and begins to resemble micromanagement. Additionally, the bill weakens shared governance traditions by restricting the role of faculty senates, limiting institutional autonomy, and reducing opportunities for professional input in curricular and academic decisions.

That said, SB 37 does affirm personal responsibility and some aspects of free enterprise. It seeks to ensure that degree programs are economically viable, helping students and taxpayers understand the financial implications of educational choices. By tying ROI and student debt outcomes to institutional accountability, it encourages efficiency and alignment with real-world needs. However, without protections for non-vocational fields and civic disciplines, the ROI framework may lead to a narrow definition of value, which undermines intellectual and cultural diversity.

The bill does not directly implicate private property rights, but the cumulative effect of its content controls, governance restrictions, and bureaucratic enforcement structure places it at odds with the broader liberty framework.

To reconcile these issues, several amendments are essential: (1) remove or clearly define ideological content bans to preserve academic freedom; (2) place appropriate limits and legislative checks on the Ombudsman’s enforcement authority; (3) restore meaningful faculty governance participation; and (4) ensure ROI measures account for educational value beyond initial salary outcomes.

Without these critical revisions, SB 37 would constitute an overreach by the state into areas of constitutionally protected expression and institutional self-governance.

  • Individual Liberty: The bill most directly conflicts with individual liberty through its restrictions on curricular content. It prohibits general education courses from promoting or instructing in concepts such as "identity politics" and "theories of systemic oppression." While such frameworks may be ideologically contentious, censoring them in a public university setting, where First Amendment protections apply fully, is a serious infringement on academic freedom and freedom of expression. Universities are meant to foster rigorous debate, not limit it based on ideological preference. The vague and politically charged language used in the bill could chill lawful speech, discourage critical inquiry, and suppress dissenting views. Even if one personally disagrees with identity politics, defending its presence in the university context is philosophically consistent with a commitment to liberty, which demands the protection of expression, not the regulation of ideas. Liberty is tested not by our willingness to protect popular speech, but by our tolerance of unpopular or controversial ideas.
  • Personal Responsibility: The bill promotes personal responsibility by requiring institutions to evaluate degree programs based on return on investment (ROI) and student debt levels. This gives students and families greater transparency about the economic value of different educational paths, encouraging more informed and fiscally responsible decision-making. Institutions are also held accountable for offering programs that align with meaningful career opportunities. In doing so, the bill reinforces the idea that public resources, both financial and institutional, should be managed prudently, with responsibility shared between students, faculty, and administrators.
  • Free Enterprise: The bill partially supports free enterprise by attempting to align academic offerings with labor market demand. Encouraging institutions to offer programs that support workforce needs can help build a dynamic, responsive economy and foster innovation in high-demand sectors. However, the bill also risks undermining intellectual freedom and innovation by imposing rigid ROI-based evaluations and restricting certain ideological frameworks. The “marketplace of ideas”, a foundational concept in both free enterprise and democratic society, depends on open intellectual competition. Overregulating which ideas are permissible in the classroom can discourage creative thinking, scholarly risk-taking, and the pursuit of unconventional or interdisciplinary knowledge, all of which are crucial to an entrepreneurial and free society.
  • Private Property Rights: The bill does not implicate private property rights. It does not alter regulations around property ownership, land use, or eminent domain. Its scope is confined to the internal policies and governance structures of public higher education institutions.
  • Limited Government: While the bill is framed as an accountability measure, it significantly expands the reach of state government into the operations of higher education. The creation of a centralized Office of the Ombudsman within the Texas Higher Education Coordinating Board (THECB), with investigatory powers, civil penalty authority, and the ability to intervene in university affairs, reflects a substantial increase in state control. Additionally, the bill transfers curriculum oversight and faculty governance authority away from decentralized, professional bodies (like faculty senates) to governing boards and the state bureaucracy. This level of top-down control runs counter to the principle of limited government, which holds that central authorities should only intervene when absolutely necessary, and with clear, narrow mandates. The bill crosses into micromanagement of intellectual life, an area where government should tread lightly, if at all.
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