Overview
Texas Permanent School Fund Corporation manages and invests the assets of the Texas Permanent School Fund, the state's oldest sovereign wealth fund. Its investments aim to generate returns that fund a portion of public education expenses such as textbooks and technology, contributing to Texas school funding since 1969. The Fund also runs a Bond Guarantee Program that uses its AAA credit rating to help independent and charter districts borrow money at lower interest rates, freeing more funds for school improvements and reducing costs for taxpayers. Unlike typical private funds, Texas PSF combines asset management with a state-backed guarantees program, leveraging the fund’s size and public backing. The goal is to protect and grow the endowment to support current and future Texas schoolchildren while lowering financing costs for school districts.
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Simplify's Take
What believers are saying
- Moody's affirmed the PSF Bond Guarantee Program's top-tier rating on September 6, 2026.
- The board approved a $1.2 billion distribution to schools for the 2028-29 biennium.
- FY2025 ACFR showed $2.2 billion distributed to the Available School Fund.
What critics are saying
- Texas law still lets the State Board of Education steer capital allocation and payouts.
- Budget files show hiring pauses and an FTE cap, constraining execution through FY2026.
- A failed ten-year return test would slash distributions and damage the fund's mandate.
What makes Texas Permanent School Fund Corporation unique
- Texas PSF is Texas's $60.6 billion sovereign wealth fund backing K-12 schools.
- January 2026 asset allocation added 9.5% private debt and 6% absolute return.
- Robert Borden and Stu Bohart are consolidating fewer strategic partnerships and co-investments.
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