Takeaways
- Texas school districts borrowed more than $9 billion of long-term bonds in July, according to data compiled by Bloomberg.
- The debt surge is fueled in part by new laws that increase Texas’ homestead exemption, which reduces the amount of revenue school districts can borrow against, said Matt Boles, a managing director at RBC Capital Markets.
- Some districts are upsizing or accelerating their deals to take advantage of a hold-harmless provision that says the state will cover any funding shortfalls caused by the change until Sept. 1, said Boles.
Texas school districts are dashing to secure bond financings before legislative changes that take effect in September could choke debt sales.
Public schools in the state borrowed more than $9 billion of long-term bonds in July, roughly six times more than the monthly average in the last five years, according to data compiled by Bloomberg. It also marks a 437% increase over the volume sold in July 2024.
Bloomberg Markets
By Erin Hudson
August 1, 2025