Texas Southern University, one of the nation’s largest historically Black colleges and universities (HBCUs), is facing a storm of scrutiny after a state audit exposed what state officials have called “significant” and “deeply disturbing” financial weaknesses. The revelations have triggered a halt to most new university contracts, calls for a criminal investigation, and a renewed debate over governance, accountability, and the unique pressures facing public HBCUs in Texas.
According to KXAN and The Texas Tribune, the controversy erupted on January 2, 2026, when Texas Lt. Gov. Dan Patrick publicly demanded a formal audit of TSU’s finances. The audit, released this week, painted a troubling picture: entire university departments had bypassed established purchasing safeguards, failed to enforce contract and accounting procedures, and left basic asset management functions in disarray. Patrick, echoing his concerns on social media, described the audit findings as “beyond disturbing” and warned, “TSU is solely responsible for this fiasco. If TSU does not remedy the situation, the legislature will.”
TSU, founded in 1927 and based in Houston, has long played a vital role in educating Black students and producing leaders across a spectrum of fields. Yet, the university’s financial and operational challenges are hardly new. The audit’s findings have reignited memories of previous crises, including a 1999 state review that issued 124 recommendations, a 2006 embezzlement case involving a former president, and a string of scandals dating back more than four decades.
The state auditor’s office examined TSU’s finances for fiscal years 2023, 2024, and 2025, with a particular focus on financial reporting for 2023 and 2024. Among the most damning findings: records for 97% of 60 vendors checked did not match the corresponding contract documentation, and what contract data existed was riddled with inaccuracies. The university hadn’t performed a regular physical inventory of its assets since 2019. As the audit bluntly stated, “Significant deficiencies in the University’s asset management functions prevented it from accurately accounting for and protecting its assets.”
Late and inaccurate financial reporting compounded the problem, with some reports to the state comptroller arriving nearly a year late in 2023. There was also a failure to adjust budget accounts to reflect persistent staffing shortages. The audit revealed that about 200 vacancies—including key positions in the IT department—had “fostered longstanding structural weaknesses that have had cascading effects over the intervening years, driving operational vulnerabilities and contributing significantly to the deficiencies identified in the audit.”
In a December 22, 2025 letter to State Auditor Lisa Collier, TSU President J.W. Crawford III acknowledged the gravity of the situation and outlined a series of remedies. “The University is committed to remediating the findings by the State Auditor’s Office,” Crawford wrote. “As an institution, we are implementing initiatives to improve and strengthen processes and internal controls across all areas of our operations, both financially and operationally.”
Crawford’s response, detailed in a 12-page letter, emphasized that TSU had already begun adopting the auditor’s recommendations and was determined to correct the deficiencies. The university also issued a public statement expressing gratitude for the auditor’s work, noting, “The University has adopted all SAO recommendations and concurs with the Auditor regarding the importance of predictable regularity of financial operations and timely, repeatable processes.”
But the scale of the problems was staggering. Preliminary findings released in November 2025 had already flagged more than 700 invoices, totaling over $280 million, tied to vendors with expired contracts in the university’s database. More than 800 invoices—worth nearly $160 million—were dated before the purchases were officially requested or approved.
Lt. Gov. Patrick, along with Gov. Greg Abbott and House Speaker Dustin Burrows, responded by immediately halting any spending by TSU on contracts except for those necessary to keep the university’s doors open. Patrick also revealed that he had previously requested a Texas Rangers investigation into potential criminal wrongdoing at TSU, an inquiry that remains ongoing.
“It is my hope, for the sake of the students at the university, that TSU can continue,” Patrick wrote on X (formerly Twitter). He added, “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.”
For many observers and advocates, the crisis at TSU is as much about the broader challenges facing public HBCUs as it is about one institution’s missteps. Historically underfunded and often operating with fewer resources than predominantly white institutions, HBCUs like TSU are frequently held to the same compliance standards and face intense scrutiny from lawmakers and the public. The current situation, as reported by KXAN, highlights the tension between necessary oversight and the need for equitable funding and structural support.
TSU’s problems are not isolated to recent years. The university’s history is dotted with headline-grabbing incidents: the 2006 embezzlement case involving former president Priscilla Slade, who was accused of spending more than $600,000 of university funds on personal luxuries; the 1992 dissolution of the “Ocean of Soul” band after members were implicated in a shoplifting incident during a school trip; a 2003 cheating scandal involving a university employee who changed grades for money; and a 2020 bribery and kickback scandal in the law school admissions process that led to the ouster of then-president Austin Lane.
Despite these setbacks, TSU’s leadership has maintained a public commitment to transparency and accountability. University officials have stated that audits are a routine part of public university governance and that TSU has undergone similar reviews in the past. Administrators have also pointed to ongoing efforts to strengthen internal controls and financial oversight as the institution continues to grow enrollment and expand academic programs.
Looking ahead, if the State Auditor’s Office proceeds with a full audit, the process could take several months and may result in recommendations or corrective actions, depending on the findings. In some cases, such audits have prompted legislative hearings or policy changes related to university governance and oversight. TSU officials have indicated they will provide all required documentation and keep stakeholders—including students, faculty, alumni, and supporters—informed as the process unfolds.
The outcome of the audit will be closely watched, not only by those directly connected to TSU but also by the broader higher education community in Texas and beyond. The case underscores the complex relationship between public HBCUs and state oversight, revealing the ongoing tensions around accountability, funding, and political influence in higher education. How Texas Southern University navigates this challenging moment could have lasting implications for HBCUs across the state and the nation.
As the audit process continues, the eyes of Texas—and indeed the country—remain fixed on TSU, awaiting answers and, perhaps, a path forward that balances rigorous oversight with the support needed to fulfill its historic mission.
