Texas School Districts Rush to Bond Market Ahead of Law Changes

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.

The issuances, which featured sales from more than 80 districts, included a $232.8 million transaction from Lubbock Independent School District in West Texas and a $494 million sale from Mesquite’s school ...