TX HB5035

Prohibits school district and charter district bonds from being guaranteed or underwritten by the corpus and income of the Texas Permanent School Fund, effective September 1, 2025

Preserves existing bond guarantees and credit enhancements approved before September 1, 2025, allowing them to remain in effect until those bonds mature or are defeased

Repeals multiple Education Code sections related to the bond guarantee program, including provisions governing charter district designations, bond guarantee reserve funds, and credit enhancement programs

Removes the Texas Education Agency's authority to approve bond guarantees and eliminates the charter district bond guarantee reserve fund

Redirects excess charter school liquidation funds (over $2 million) solely to teacher recruitment grant programs, removing the previous option to deposit funds into the charter district bond guarantee reserve fund