Texas School Districts Rush to Bond Market Ahead of Law Changes.

The article focuses on the surge in bond financings by Texas school districts in anticipation of legislative changes that could impact future debt sales. In July, public schools in Texas borrowed over $9 billion in long-term bonds, significantly exceeding previous monthly averages and reflecting a 437% increase compared to July 2024. This rush is driven by new laws aimed at making home ownership more affordable, which could limit the revenue school districts can borrow against. Many districts, such as Spring Branch Independent School District, are accelerating their borrowing to take advantage of a temporary hold-harmless provision from the state that covers funding shortfalls until September 1. The influx of borrowing has led to wider spreads in the municipal bond market, with many bonds benefiting from a state-backed guarantee that enhances their credit ratings. [Extracted from the article]