Texas adjusted community college performance-based funding formulas after colleges exceeded predicted graduation and outcome targets—creating a budget shortfall in the incentives lawmakers had planned. During a Wednesday meeting, Texas Higher Education Coordinating Board officials trimmed incentive levels tied to educating high-need students. The outcome is smaller bonuses for institutions that serve low-income students and adult learners reaching graduation benchmarks. For community colleges, the policy shift directly affects revenue forecasting, program planning, and the scale of student success interventions. The decision underscores how state incentive designs can become underfunded when institutional performance improves faster than budget assumptions.