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 40 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 meeting, the Texas PSF Corp. board of directors celebrated the program’s 40th anniversary. Today the program backs over $117 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.

Watch our 40th anniversary video that highlights bond projects at Forney ISD, Goose Creek CISD and Los Fresnos CISD.

Additional program information