A new report from the Federal Reserve Bank of Dallas finds Texas community colleges are showing small signs of recovery after years of enrollment pressure, including steady gains since the pandemic. Researchers attribute some resilience to outreach and program adjustments, but enrollment remains below historic levels. Texas now has about 700,000 students enrolled in community colleges—down from roughly 750,000 fifteen years ago—despite signs that more students are graduating from Texas high schools. The report also finds some students increasingly go to colleges out of state, limiting community-college rebound. For two-year institutions planning staffing, course scheduling, and transfer-aligned pathways, the report suggests modest improvement but persistent structural enrollment constraints. The findings also highlight how enrollment recovery is not simply about post-pandemic normalization, but about competitive positioning across the broader higher education market.