Austin, TX – April 7, 2026 – Moody’s Ratings has once again assigned its highest Aaa rating to the Texas Bond Guarantee Program (BGP), reinforcing the program’s role as a key asset of public school funding across the state.
Backed by the assets of the Texas Permanent School Fund (PSF) and managed by the Texas PSF Corporation, the BGP is administered by the Texas Education Agency. The program guarantees principal and interest on bonds issued by public school districts and qualifying charter schools, helping them secure the lowest available borrowing costs. Today, it supports roughly $144 billion in outstanding bonds and delivers an estimated $425 million in annual savings to Texas districts and taxpayers.
“Moody’s decision reflects the strength of the Permanent School Fund and the dependability of the Bond Guarantee Program,” said Robert Borden, Chief Executive Officer and Chief Investment Officer of the Texas PSF Corporation. “This translates into real savings for school districts across Texas, freeing up resources that can be directed toward students, educators, and classrooms. We’re proud to play a role in that impact.”
In its review, Moody’s pointed to the PSF’s substantial financial position with total assets exceeding $67 billion, the program’s well-established legal mechanics for Fund reimbursement, and the large number of highly rated borrower districts in the program as key drivers of the rating.
The Texas PSF Corporation remains focused on stewarding the Fund’s assets to preserve its strength and ensure continued access to low-cost financing for Texas schools well into the future.
Contact: mediarequests@texaspsf.org