Texas Southern University Under Investigation After Audit Flags Financial Issues, Governor Says ‘Waste, Fraud, And Abuse Will Not Be Tolerated’
Governor Greg Abbott and Lt. Governor Dan Patrick have ordered an investigation into alleged financial mismanagement at Texas Southern University (TSU), one of the nation’s largest Historically Black Colleges and Universities.
Abbott announced Monday, Nov. 10, 2025, that he directed the Texas Department of Public Safety to investigate after State Auditor Lisa Collier reported significant “deficiencies in oversight, contracting, processes, and reporting” — affecting “hundreds of millions” of state funds. He also asked the Texas Comptroller’s Office to help the Texas Rangers “fully analyze” the university’s finances.
“The Texas State Auditor uncovered significant financial and operational issues with Texas Southern University’s accounting procedures, alleging the potential misappropriation of hundreds of millions of dollars,” Abbott said.
“Waste, fraud, and abuse will not be tolerated. TSU’s Board of Regents and all university officials must fully cooperate with these investigations to ensure taxpayer dollars are not squandered,” he added.
According to The Texas Tribune, Patrick said he plans to speak with Abbott and House Speaker Dustin Burrows about a potential freeze of the university’s funding.
TSU, located in Houston, enrolls about 8,000 students. In a letter to Patrick and the state Legislature’s Audit Committee, which Patrick shared on X, Collier said staff vacancies in “critical” financial roles have delayed reporting and weakened oversight of assets and contracts.
A preliminary audit found 743 invoices worth $282.2 million linked to vendors with expired contracts, and another 8,144 invoices — totaling nearly $158 million — were dated before purchases were requested or approved. Collier also reported that TSU submitted financial statements to the state comptroller 10 months late for fiscal 2023 and four months late for 2024.
“The University has not been conducting annual physical inventories, and its official system of record for tracking assets was incomplete, outdated, and inconsistently maintained,” Collier wrote. She shared plans to meet with University officials on Thursday, Nov. 13, 2025, to discuss the audit results.
Past Financial Scrutiny At Texas Southern
TSU previously faced financial scrutiny in 2020, when allegations of bribery and kickbacks in its law school admissions led to the ousting of then-president Austin Lane, The Tribune reports. An internal investigation revealed that unqualified students were admitted and awarded over $430,000 in scholarships, with cashier’s checks and money orders found hidden in an admission official’s desk.
“Sadly, TSU has come under scrutiny in the past over how finances and contracts have been handled, as well as shoddy work done by contractors,” Patrick said in a statement on X. “There has been a revolving door of presidents, board members, and school officials. Graduation rates have not met expectations. The legislature has continued year-after-year to try to help the school. It appears the legislature has been misled over this time period on promised improvements in accounting practices and contracting.”
Over the last few months, the Texas State Auditor has been auditing Texas Southern University. They have been reviewing TSU’s financial processes, procurement operations, and inventory records.
Over the weekend, I was informed of disturbing information suggesting the misuse of… pic.twitter.com/c93sBTO826
— Office of the Lieutenant Governor Dan Patrick (@LtGovTX) November 10, 2025
In a statement to The Tribune, TSU said it is cooperating with the state auditor and has “enacted corrective measures,” including a new purchasing system. The university declined to comment on staffing vacancies or the possibility of a funding freeze.
Lawmaker Alleges Race Plays Role In Texas Southern Investigation
News of the investigation sparked backlash from state lawmakers, including State Rep. Jolanda Jones, whose district covers TSU. According to KHOU 11 News, Jones, who said the university has “served my family well,” questioned Abbott’s involvement in the probe, noting that he appoints the school’s board of regents. At a time when diversity, equity, and inclusion initiatives are under attack nationwide, she alleged that state officials are targeting TSU based on race.
“If there’s any malfeasance going on, what does that have to do with the university when you appointed the people who run the university?” Jones said of Abbott.
“You are literally trying to erase Black excellence, you’re trying to erase us,” she added.
