The Texas Permanent School Fund (PSF) was created by Texas’ first Constitution in 1845 as a perpetual fund to support the state’s public schools and was seeded with $2 million in 1854. Since that time, the PSF has grown to comprise over $52 billion in assets and will distribute nearly $2.2 billion annually to Texas K-12 schools.
In 2021 the 87th Texas Legislature established the Texas Permanent School Fund Corporation (Texas PSF) as a stand-alone special-purpose governmental corporation.
Although our corporate structure is new, Texas PSF has a long, distinguished history nearly as old as the state itself.
First, the investment portfolio we manage generates returns which help fund a portion of the state’s K-12 public educational expenses, including textbooks and technology. Since 1969, Texas PSF has distributed almost $39 billion dollars to Texas public schools.
Second, through the Bond Guarantee Program, independent school districts and charter districts benefit from the Fund’s AAA credit rating through lower interest rates on their debt, allowing more money to go toward school improvements, and saving Texas taxpayers hundreds of millions of dollars each year.