SovereignWealthFunds.comLouisiana Education Quality Trust Fund (8(g))
Louisiana Education Quality Trust Fund (8(g)): what it invests in
Geography Domestic and global
Louisiana Education Quality Trust Fund (8(g)): how big it is, and on what basis
In US dollars: about USD 1.77B. Reported in US dollars.
Louisiana Education Quality Trust Fund (8(g)): what it publishes
Published 5 · Partly 0 · Not published 5
Our 10 item score. It measures what is public, not how well a fund is run.
- May 2026 vote to keepS5
- 58%
At a glance. Louisiana's Education Quality Trust Fund, known as 8(g), is a permanent education endowment built from federal offshore oil and gas revenue paid to the state from 1986. Its fund balance was USD 1.77 billion at 30 June 2025, including USD 1.54 billion of untouchable corpus. Earnings fund school improvement grants; voters chose to keep the fund in 2025 and 2026. S1 S3 S5
Key points
- Fund balance of USD 1,768.5 million at 30 June 2025, up USD 106 million in the year. S3
- Nonspendable corpus of USD 1,536.4 million is protected by the state constitution. S3
- Started with a USD 540 million federal payment in October 1986, plus USD 84 million paid over 15 years. S1
- Still receives USD 5 million to 15 million a year linked to offshore production. S1
- More than USD 1.79 billion allocated to over 9,940 school projects since 1986. S1
- Voters rejected repeal of the fund in May 2026 by 58 to 42 percent. S5
Interesting facts
Mandate and goals
The constitution holds the permanent fund as trust principal and uses its earnings to improve the quality of education in Louisiana. S3 S1
How it invests
| Industries | Financial services. Sector agnostic S3 |
|---|---|
| Asset classes | Fixed income, Public equities, Cash and money markets S3 |
| Stages | Public markets S3 |
| Geography | Domestic and global. Not published S3 |
| Direct / through funds / co-invest | Not published / Not published / No S4 |
| Ticket size | No ticket size or holdings published. S3 |
| External managers | Not published S4 |
| Co-investment programme | None S4 |
Past investments
The fund has not published a list of investments.
Case studies
Voters keep the fund twice S5
- What: Proposals to fold the fund into the Teachers' Retirement System to free money for teacher pay went to voters in 2025 and 2026.
- When: March 2025 and May 2026
- Size: USD 1.77B fund
- Why: Supporters aimed to fund raises of USD 2,250 for teachers.
- Outcome: Rejected by 65 percent in 2025 and 58 percent in 2026; the fund stays intact.
8(g) grants for school improvement S1
- What: Fund earnings pay for BESE competitive and block grants to public and approved nonpublic schools.
- When: 1986 to 2025
- Size: USD 1.79B+
- Why: Turn offshore oil revenue into lasting education gains.
- Outcome: More than 9,940 projects approved.
Investment process
The State Treasurer invests the permanent fund. BESE decides how to allocate its half of the support fund through annual 8(g) programmes; the legislature appropriates the rest. S1 S4
| Committee | Role |
|---|---|
| Board of Elementary and Secondary Education (BESE) | Allocates 8(g) grants S1 |
- Federal 8(g) payments are added to the permanent fund. S1
- The Treasurer invests the corpus and earnings flow to the support fund. S3 S1
- BESE approves annual grant programmes for schools. S1
How to approach: Schools apply through BESE 8(g) grant programmes. S6
Size and returns
Leadership
Governance and transparency
- Legal basis: Louisiana Constitution, Article VII, Section 10.8 (1986 amendment) S5 S1
- Oversight: State Treasurer and BESE, with legislative appropriation S1
- Auditor: Reported as a major fund in the audited state financial report S3
- Not an IFSWF member. S2
Transparency score: 5 of 10 (band 3 of 5). Our own 10-item rubric; see the methodology page.
History
For family offices
The fund has no private investor programme. It is a state education endowment whose earnings go to school grants. S1
- 8(g) grants: Louisiana public and approved nonpublic schools https://bese.louisiana.gov/8(g)-grants-program/8(g)-annual-programs-reports S6
Reports
- BESE 8(g) Annual Report 2024-2025: https://bese.louisiana.gov/docs/default-source/8(g)-documents-and-forms/fy25_8g_annual_report.pdf S1
- State of Louisiana ACFR FY2025: https://www.doa.la.gov/media/lqvhnfhs/fy25-acfr-final.pdf S3
Common questions
How big is the 8(g) fund?
USD 1.77 billion fund balance at 30 June 2025, of which USD 1.54 billion is protected corpus. S3
Where did the money come from?
Federal offshore oil and gas revenue: USD 540 million in 1986, USD 84 million over 15 years and yearly payments since. S1
What does it pay for?
School improvement grants through BESE; more than USD 1.79 billion since 1986. S1
Was the fund repealed in 2026?
No. Voters rejected Amendment 3 on 16 May 2026, so the fund remains. S5
Related profiles
- Alaska Permanent Fund United States (Alaska) · USD 91.9B
- New Mexico State Investment Council (SIC) United States (New Mexico) · USD 74.63B
- Texas Permanent School Fund United States (Texas) · USD 60.6B
- Texas Permanent University Fund (PUF) United States (Texas) · USD 40.29B
- Alberta Heritage Savings Trust Fund Canada (Alberta) · C$31.9B
- North Dakota Legacy Fund United States (North Dakota) · USD 15.10B
All sovereign wealth funds in North America · All sub-national permanent funds · All funds in United States
Sources
Disclaimer
Informational only. SovereignWealthFunds.com is an independent public-source reference. It is not affiliated with or endorsed by any fund named on it, and it is not investment, legal or tax advice. Figures are as of the dates shown next to them and may have changed; please read each fund's official pages, linked on its profile. To report an error, use the contact page. Copyright SovereignWealthFunds.com. All rights reserved.
