June 23, 2026 Committee of the Full Board Item 4
Proposed Amendments to 19 TAC Chapter 74, Curriculum Requirements, Subchapter B, Graduation Requirements, §74.11, High School Graduation Requirements, and §74.12, Foundation High School Program
(Second Reading and Final Adoption)
June 26, 2026
COMMITTEE OF THE FULL BOARD: ACTION
STATE BOARD OF EDUCATION: ACTION
SUMMARY: This item presents for second reading and final adoption proposed amendments to 19 Texas Administrative Code (TAC) Chapter 74, Curriculum Requirements, Subchapter B, Graduation Requirements, §74.11, High School Graduation Requirements, and §74.12, Foundation High School Program. The proposed amendments would update high school graduation requirements to align with House Bill (HB) 27, 89th Texas Legislature, Regular Session, 2025, related to personal financial literacy, and Senate Bill (SB) 2314, 89th Texas Legislature, Regular Session, 2025, related to the Texas Higher Education Coordinating Board (THECB) direct admission program. Changes are recommended since published as proposed.
STATUTORY AUTHORITY: Texas Education Code (TEC), §§7.102(c)(4); 28.025(a); (b-1)(4); (b-24), as added by HB 27, 89th Texas Legislature, Regular Session, 2025; and (c)(1); and 28.0257, as amended by SB 2314, 89th Texas Legislature, Regular Session, 2025.
TEC, §7.102(c)(4), requires the State Board of Education (SBOE) to establish curriculum and graduation requirements.
TEC, §28.025(a), requires the SBOE to determine by rule the curriculum requirements for the foundation high school program that are consistent with the required curriculum and requires the SBOE to designate specific courses that are required for the foundation high school program.
TEC, §28.025(b-1)(4), requires the SBOE to require that the curriculum requirements for the foundation high school program include a requirement that students successfully complete at least one-half credit in personal financial literacy.
TEC, §28.025(b-24), as added by HB 27, 89th Texas Legislature, Regular Session, 2025, requires the SBOE to allow a student to comply with the curriculum requirement for a one-half credit in personal financial literacy by successfully completing an advanced placement (AP) course designated by the SBOE as containing substantively similar and rigorous academic content.
TEC, §28.025(c)(1), permits a student to graduate and receive a diploma only if the student successfully completes the curriculum requirements identified by the SBOE under TEC, §28.025(a), and complies with TEC, §§28.0256, 28.0257, and 39.025.
TEC, §28.0257, as added by SB 2314, 89th Texas Legislature, Regular Session, 2025, requires a student to elect whether to opt in to allowing the THECB to share the student's data and education records, as necessary, with institutions of higher education to allow the student to participate in the direct admissions program established by THECB.
The full text of statutory citations can be found in the links above.
EFFECTIVE DATE: The proposed effective date of the proposed amendment is August 1, 2026. Under TEC, §7.102(f), the SBOE must approve the rule action at second reading and final adoption by a vote of two-thirds of its members to specify an effective date earlier than the beginning of the 2027-2028 school year. The earlier effective date will allow districts of innovation that begin school prior to the statutorily required start date to implement the proposed rulemaking when they begin their school year.
PREVIOUS BOARD ACTION: The SBOE adopted rules in 19 TAC Chapter 74, Subchapter B, to implement the Foundation High School Program effective July 8, 2014. The SBOE adopted amendments to Chapter 74, Subchapter B, effective August 22, 2016; August 27, 2017; August 27, 2018; August 1, 2019; August 1, 2020; August 1, 2022; and August 1, 2024. The SBOE last adopted amendments effective August 1, 2025. A discussion item regarding possible amendments to §74.11 and §74.12 was presented for discussion to the Committee of the Full Board during the November 2025 SBOE meeting. At the January 2026 meeting, the SBOE approved proposed amendments to §74.11 and §74.12 for first reading and filing authorization. An item on proposed amendment to §74.11 and §74.12 was presented to the Committee of the Full Board at the April 2026 SBOE meeting. At that time, the board postponed action on second reading and final adoption until the June 2026 meeting.
BACKGROUND INFORMATION AND JUSTIFICATION: The 89th Texas Legislature, Regular Session, 2025, passed HB 27, requiring students to successfully complete a one-half credit personal financial literacy course instead of the option to complete either a one-half credit economics course or a one-half credit course in economics and personal financial literacy to satisfy the economics requirement under the Foundation High School Program. The bill changed the current one-half credit economics course to a one-credit course and permits students to select the third social studies credit required for graduation from economics, world geography, or world history. The bill also added new TEC, §28.025(b-24), requiring the SBOE to allow a student to comply with the personal financial literacy requirement by successfully completing an AP course.
The 89th Texas Legislature, Regular Session, 2025, also passed SB 2314, amending the state graduation requirements in TEC, §28.025(c), to require students to elect whether to allow the THECB to share the student's data and education records, as necessary, with institutions of higher education to allow the student to participate in the direct admission program established by THECB.
Changes are recommended since approved for first reading and filing authorization. It is recommended that the SBOE maintain two sets of graduation requirements in social studies in §74.12(b)(4): one set that aligns with HB 27 requirements applicable to students entering Grade 9 in the 2026-2027 school year and one set that reflects the graduation requirements that will continue to apply to students who entered Grade 9 prior to the 2026-2027 school year. Additionally, staff identified the need to update cross references to rules that have been repealed or are proposed for repeal.
The SBOE approved proposed amendments to §74.11 and §74.12 for first reading and filing authorization at its January 2026 meeting. At the April 2026 meeting, the SBOE postponed second reading and final adoption of proposed amendments to §74.11 and §74.12 until the June 2026 meeting.
The attachment to this item reflects the text of proposed amendments to §74.11and §74.12 for consideration by the SBOE for second reading and final adoption. The proposed amendments would update the high school graduation requirements to align with HB 27 and SB 2314. An additional amendment would clarify that the changes to the social studies graduation requirements adopted under HB 27 apply to students who enter Grade 9 beginning with the 2026-2027 school year, consistent with statute.
FISCAL IMPACT: No changes have been made to this section since published as proposed.
The Texas Education Agency (TEA) has determined that there are no additional costs to state or local government, including school districts and open-enrollment charter schools, required to comply with the proposal.
LOCAL EMPLOYMENT IMPACT: No changes have been made to this section since published as proposed.
The proposal has no effect on local economy; therefore, no local employment impact statement is required under Texas Government Code, §2001.022.
SMALL BUSINESS, MICROBUSINESS, AND RURAL COMMUNITY IMPACT: No changes have been made to this section since published as proposed.
The proposal has no direct adverse economic impact for small businesses, microbusinesses, or rural communities; therefore, no regulatory flexibility analysis specified in Texas Government Code, §2006.002, is required.
COST INCREASE TO REGULATED PERSONS: No changes have been made to this section since published as proposed.
The proposal does not impose a cost on regulated persons, another state agency, a special district, or a local government and, therefore, is not subject to Texas Government Code, §2001.0045.
TAKINGS IMPACT ASSESSMENT: No changes have been made to this section since published as proposed.
The proposal does not impose a burden on private real property and, therefore, does not constitute a taking under Texas Government Code, §2007.043.
GOVERNMENT GROWTH IMPACT: No changes have been made to this section since published as proposed.
TEA staff prepared a Government Growth Impact Statement assessment for this proposed rulemaking. During the first five years the proposed rulemaking would be in effect, it would expand an existing regulation by adding the requirement that students must elect whether to allow the THECB to share their academic data and education records with institutions of higher education for the direct admission program established by THECB.
The proposed rulemaking would not create or eliminate a government program; would not require the creation of new employee positions or elimination of existing employee positions; would not require an increase or decrease in future legislative appropriations to the agency; would not require an increase or decrease in fees paid to the agency; would not create a new regulation; would not limit or repeal an existing regulation; would not increase or decrease the number of individuals subject to its applicability; and would not positively or adversely affect the state's economy.
PUBLIC BENEFIT AND COST TO PERSONS: No changes have been made to this section since published as proposed.
The proposal would create an additional option for students to satisfy high school graduation requirements for social studies and would support students to receive more immediate information regarding college admissions to make the college planning process easier. There is no anticipated economic cost to persons who are required to comply with the proposal.
DATA AND REPORTING IMPACT: No changes have been made to this section since published as proposed.
The proposal would have no data and reporting impact.
PRINCIPAL AND CLASSROOM TEACHER PAPERWORK REQUIREMENTS: No changes have been made to this section since published as proposed.
TEA has determined that the proposal would not require a written report or other paperwork to be completed by a principal or classroom teacher.
PUBLIC COMMENTS: Following the January 2026 SBOE meeting, notice of the proposed amendments was filed with the Texas Register, initiating a public comment period. The public comment period began February 27, 2026, and ended at 5:00 p.m. on March 30, 2026. A summary of public comments received was provided to the SBOE prior to the April 2026 meeting. The SBOE will take registered oral and written comments on the proposal at the appropriate committee meeting in June 2026 in accordance with the SBOE board operating policies and procedures.
MOTION TO BE CONSIDERED: The State Board of Education:
Approve for second reading and final adoption the proposed amendments to 19 TAC Chapter 74, Curriculum Requirements, Subchapter B, Graduation Requirements, §74.11, High School Graduation Requirements, and §74.12, Foundation High School Program; and
Make an affirmative finding that immediate adoption of proposed amendments to 19 TAC Chapter 74, Curriculum Requirements, Subchapter B, Graduation Requirements, §74.11, High School Graduation Requirements, and §74.12, Foundation High School Program, is necessary and shall have an effective date of August 1, 2026. (Per TEC, §7.102(f), a vote of two-thirds of the members of the board is necessary for an earlier effective date.)
Staff Member Responsible:
Jessica Snyder, Senior Division Director, Curriculum Standards and Student Support
Attachment:
Text of Proposed Amendments to 19 TAC Chapter 74, Curriculum Requirements, Subchapter B, Graduation Requirements, §74.11, High School Graduation Requirements, and §74.12, Foundation High School Program