The University receives income from an endowment known as the Permanent University Fund. With $6.95 billion (US) in assets as of May 31, 2003, UT's endowment
is the fourth largest of U.S. universities (after Harvard,
Stanford and Yale). However, this money is spread throughout the University of Texas System, and one-third of the income
goes by law to the Texas A&M University
System. At one time, the PUF was the chief source of income for Texas's two university's systems, but today its revenues
account for less than 10 percent of the universities' annual budget, challenging the university to increase sponsored research
and private donations. Other Texas public universities outside these two systems, notably Houston and Texas Tech,
are prohibited by law from sharing in the income from this endowment.
