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In an effort to address the rising cost of higher education, Governor Greg Abbott recently sent a letter to Texas public university system chairmen and chancellors, urging them to prevent tuition increases. Originally implemented in 2023, the tuition freeze was a joint effort between universities and the Texas Legislature, with approximately $700 million in additional state funding allocated to support a freeze through the 2024-2025 school year. Abbott’s letter underscores his intention to extend this restriction, proposing no tuition hikes for the 2025-2026 and 2026-2027 school years.
By freezing tuition, Texas joins other states that have enacted similar measures to mitigate the financial burden of college costs on students and families. These initiatives reflect a growing national trend as states tackle the affordability crisis in higher education, driven by rising student debt and limited family income growth.
“When inflation and other economic pressures burden household budgets, our public universities must take every step possible to ease the financial burden on our students and their families. Last year, I signed a law that prohibits increasing undergraduate tuition and fees for both the 2023-24 and the 2024-25 academic years. As this tuition freeze expires, let me be clear: I will not support any tuition increase at any public higher education institution in the upcoming biennium. When all Texans have access to quality and affordable education, they can earn better wages, meet workforce qualifications, and experience a higher quality of life. I will ensure college affordability remains a top priority for the state as we head into the next legislative session.”
Source: Statement by Texas Gov. Greg Abbott, 11.13.2024
Rising Costs for Texas Families
In his letter to university leaders, Governor Abbott cited inflation and economic pressures on Texas households as central motivations for the continued tuition freeze. Inflation has led to higher costs across essential sectors, impacting everything from housing to groceries. For many Texas families, college tuition is one of the largest financial obligations after housing and healthcare. The Governor’s support for a tuition freeze is intended to ease this burden by keeping higher education costs stable over the next few years. This measure also offers a window of opportunity for state lawmakers to address the underlying issues driving tuition increases.
The commitment to affordable higher education has bipartisan support. The Republican Party of Texas’ 2024 Platform includes support for a tuition freeze, stating: “105. College Tuition and Student Loan Reform: (a): We call for the Texas Legislature to freeze tuition and fees at state colleges and universities.” Similarly, the Texas Democratic Party Platform advocates for a tuition freeze, calling for fees to be “frozen and then rolled back to previous, affordable levels with appropriate regulation reinstated moving forward.”
Preparing for the 2025 Legislative Session
As the Texas Legislature enters its 89th Legislative Session in January 2025, higher education funding and affordability are expected to be key issues. Governor Abbott has identified college affordability as a priority, and discussions could lead to additional reforms, including increased oversight of university spending, transparency in tuition and fee structures, and reconsideration of “tuition deregulation.” Such initiatives would position Texas as a leader among states in seeking solutions to the higher education affordability crisis and could drive significant change in the funding and regulation of public universities.
In the 88th Legislative Session (2023), State Representative Briscoe Cain (R-Deer Park) introduced House Bill 547, which would have mandated that public universities provide students with a detailed, itemized bill each semester, listing all charges as well as an itemized breakdown of tuition and fees. The bill also required institutions to consolidate all tuition into a single charge for catalog and billing purposes, ultimately enhancing transparency in a traditionally opaque process. This legislation aimed to empower students with a clearer understanding of specific charges. Unfortunately, Cain’s proposal was not granted a public hearing in the House Higher Education Committee and, therefore, was not considered.
The Impact of Tuition “Deregulation” in Texas
Implemented in 2003 through House Bill 3015, “tuition deregulation” shifted the authority to set tuition rates from the state legislature to individual public universities. This policy, intended to give institutions greater flexibility in managing funds and improving educational quality, has largely led to soaring tuition costs, making an affordable college education increasingly out of reach for many Texans. By removing the cap on tuition, deregulation allowed universities to raise costs to address budget needs or pursue institutional growth. However, this approach has disproportionately impacted students and their families, as tuition rates have far outpaced inflation and wage growth, contributing to the student debt crisis in Texas.
Deregulation has also reduced public accountability for how universities allocate their funds. With tuition rates no longer set by the legislature, there is less oversight over university spending, allowing some institutions to prioritize construction projects or administrative salaries over student affordability. In effect, the state has relinquished its role in making higher education affordable, leaving students vulnerable to the financial pressures imposed by institutions that may not always prioritize cost-effective education.
Conclusion: Continuing the Affordability Effort
Governor Abbott’s plan to extend the tuition freeze through the 2026-2027 academic year demonstrates Texas’ commitment to affordable higher education. This directive is designed to support families in their pursuit of educational and economic advancement without increasing the burden of tuition. With the 89th Legislative Session approaching, Texas lawmakers have an opportunity to address the issues driving rising tuition costs and ensure that the higher education system remains accessible and financially sustainable.
As Texas continues to refine its approach to funding higher education, the extended tuition freeze may serve as a model for other states grappling with similar affordability challenges. If these initiatives succeed in reducing costs and improving access, they could play a significant role in shaping the future of higher education in Texas and potentially across the country.
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