The Texas Permanent School Fund (PSF) was created by the state Constitution in 1876 to assist education. The fund is sourced from investment returns, oil, gas and mineral royalty payments and land leases. Today, the PSF is America’s second largest SWF, just behind Alaska’s, and it serves Texas citizens in two ways: providing money for public education from a source other than taxes and providing a guarantee for bonds issued by participating local school districts and for bonds of qualified charter districts.