Earlier today, Governor Greg Abbott sent a formal letter to Comptroller Don Huffines requesting a review of how independent school districts spend public funds. The Comptroller's office announced the same day that it will proceed with what it is calling the Huffines Performance Review.

Here is what we know and what it may mean for your district:

What was announced

Governor Abbott asked the Comptroller to determine whether ISDs are "appropriately spending their funds" — specifically whether the $104.9 billion Texas spends on K-12 education is reaching students, classrooms, and teachers rather than being "absorbed by central-office growth, administrative bloat, consultants, and the web of noninstructional bureaucracy." The letter ties the request to the historic funding increases under House Bill 2 from the 89th Legislature, framing heightened scrutiny as the counterpart to increased investment. Comptroller Huffines said his office "will document wasteful and inappropriate spending wherever we discover it."

Legal authority and scope

The Governor cites Section 111.003(a)(1) and (2) of the Texas Tax Code as the authority for the investigation — the Comptroller's broad power to examine records and conduct investigations. The Comptroller has indicated that districts currently operating under a state-appointed board of managers will be excluded.

Timeline

Up to four ISDs of varying size and geographic location will be selected. The Comptroller has been asked to provide the Governor's office with that selection and a preliminary timeline and district names are expected in the coming weeks. The final report is due to the Governor by December 31, 2026, timed to inform the legislative session and any resulting reform proposals.

What we recommend

Even if your district is not among the four selected, the review signals where state scrutiny is headed and what findings may drive 2027 legislation. Districts may want to:

• Review the administrative-versus-instructional split in current budgets and be prepared to explain it
   
• Confirm financial transparency postings and required disclosures are current and accurate
   
• Ensure documentation for contracts, consultant engagements, and noninstructional expenditures is organized and readily producible
   
• Identify internally who would lead the response if a records request or inquiry arrives

We will follow up as soon as the selected districts are named. Please reach out with any questions in the meantime.

Earlier this week, Gov. Greg Abbott called for the Legislature to ban Texas public schools from sponsoring H-1B visas — his stated goal is "exactly zero" school employees holding the federal work permits. The proposal would also bar districts from accepting gifts or entering financial agreements with foreign sources, and would apply to current visa holders as well as future hires.

Texas public school districts collectively account for around 340 H-1B approvals according to federal data. As shown below, that is far outpaced by private employers in the state.

Abbott framed the proposal around federal failure to control the visa program and the risk of foreign influence in schools. 

To be clear, there are no changes to state law or agency rules yet. We will alert you if that changes.