89R10408 KJE-D By: Hinojosa H.B. No. 5288 A BILL TO BE ENTITLED AN ACT relating to the allocation, use, and transfer of federal education block grants. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 48, Education Code, is amended by adding Section 48.014 to read as follows: Sec. 48.014. FEDERAL EDUCATION BLOCK GRANTS; REPORT. (a) Notwithstanding any other law, a federal education block grant may not be allocated, spent, or transferred except as specifically authorized by the legislature by appropriation or other general law. (b) The agency shall submit an annual report to the legislature regarding the use of federal education block grants during the preceding school year. The report must include information regarding the effect of the manner in which the block grants were allocated on education in this state, including any progress toward reducing educational disparities or improving student achievement. SECTION 2. Section 317.003, Government Code, is amended by amending Subsection (b) and adding Subsection (b-1) to read as follows: (b) Except as provided by Section 317.005(f), a proposal may provide for the withholding of appropriations made from funds dedicated by statute to a specific state agency or for a specific purpose and may provide for the transfer of appropriations made from statutorily dedicated funds to an agency or for a purpose not authorized by the statute. Funds dedicated by the Texas Constitution are subject to being withheld under this chapter but are not subject to transfer except to another state agency entitled to receive appropriations from the funds under the terms of the constitution. Subject to Subsection (b-1), federal [Federal] funds appropriated by the legislature are subject to being withheld under this chapter but may not be transferred except as permitted by federal law. (b-1) A federal education block grant may not be withheld or transferred under, or otherwise affected by, this chapter. SECTION 3. This Act takes effect September 1, 2025.