The Bond Guarantee Program (BGP) is a unique and innovative use of Permanent School Fund assets. The program provides triple-A ratings to eligible school and charter district bonds, reducing borrowing costs and helping to build and renovate much-needed school facilities. Administered by the Texas Education Agency, the BGP addresses critical school infrastructure needs while generating cost savings – estimated at $400 million dollars each year – that help to lower school district property tax rates.
Celebrating 42 years of serving Texas schools
Since its inception in 1984, the BGP has evolved into a cornerstone of bond project funding. At its April 11, 2024 meeting, the Texas PSF Corp. board of directors celebrated the program’s 40th anniversary. Today the program backs over $143 billion in bonds issued by over 900 Texas school and charter districts, making the Permanent School Fund the largest triple-A rated bond guarantor in the United States.
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- A congratulatory video from Texas PSF Corp board member and Texas Land Commissioner Dr. Dawn Buckingham
Additional program information
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- IRS Notice(PDF)
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