TX HB5265

Creates the Texas Health Care Workforce Education Fund, held outside the state treasury and administered by the comptroller, with investments managed by the Texas Treasury Safekeeping Trust Company

Distributes fund appropriations to general academic teaching institutions (comprehensive, doctoral, or master's universities) that awarded health care professional degrees in the preceding fiscal year

Allocates 95% of annual distributions to a permanent endowment based on a weighted formula: bachelor's degrees count as 1, master's degrees as 3, and doctoral degrees as 6, calculated over the preceding three years

Allocates 5% to a startup fund administered by the coordinating board for grants to start new or expand existing health care professional degree programs

Caps annual appropriations at 7% of the fund's average net market value and limits any single institution or university system to no more than 25% of the annual distribution

Permits funds to be used for enrollment capacity increases, faculty salaries, equipment purchases, loan repayment guarantees for students committing to teach in Texas for four years, and clinical facility investments

Takes effect September 1, 2026, contingent on voter approval of a related constitutional amendment proposed by the 89th Legislature