A new Federal Reserve Bank of Dallas analysis finds Texas community colleges are showing small enrollment recovery signs after long declines, even as the sector remains below earlier levels. The report notes that more Texas high school graduates are completing their education, but junior college enrollment has not kept pace. It points to two pressures: workforce entry by some graduates and continued out-of-state enrollment. The article says Texas now has roughly 700,000 students in community colleges, up somewhat since the pandemic but still down from about 750,000 fifteen years ago, using state data. The reported uptick suggests colleges are pivoting to stay relevant, but the gap reinforces ongoing challenges in persistence and affordability for two-year students.