U.S. Senate Passes Lummis, Barrasso, Hageman Legislation to Modernize Wyoming School Trust Fund Investments

October 1, 2026

Washington D.C. - The U.S. Senate last night passed the Wyoming Education Trust Modernization Act, legislation led by Senators Cynthia Lummis (R-WY) and John Barrasso (R-WY) that would give Wyoming's permanent school land fund greater investment flexibility and potentially increase annual returns for K-12 education.

"Last night, the U.S. Senate passed a bill that will put Wyoming's school trust fund to better work for our students," said Lummis. "The fund holds $5.4 billion but earns only about 5 percent, because it's still bound by investment rules written in 1890. This bill keeps the principal fully protected while allowing modern investment tools that could raise returns. That means millions of additional dollars for Wyoming classrooms every year, with no new taxes. I thank my Senate colleagues for their support, and I urge the House to act quickly so we can get this to President Trump's desk."

"Wyoming has made smart, sustained investments in the future of our students. The Wyoming Education Trust Modernization Act will give our state more flexibility in how it manages and grows our permanent school land fund," said Barrasso. "Diversifying this vital fund will help generate greater returns for students and teachers across Wyoming. With Senate passage, this bill is one step closer to becoming law."

Background:

• Congress established Wyoming's State Act of Admission upon statehood in 1890, and it governs how the state manages its federally granted school lands. Proceeds from school trust land sales, exchanges, or disposals must be deposited into a permanent land fund under strict federal regulation. Current law prohibits investing the principal, and only accrued interest can be used to fund K-12 education.
• Wyoming's permanent school trust fund currently holds $5.4 billion and generates roughly 5 percent annually under these restrictions. The legislation passed by the Senate would modernize the fund's investment policies, potentially raising returns from 5% to 8.3% and significantly boosting annual education funding without touching the principal.
• The bill preserves all constitutional protections for education funding and maintains principal protection. Only investment returns can be spent, all existing controls on land disposal and exchanges remain unchanged, and the longtime permanent trust fund structure stays fully intact.
• The Wyoming Education Trust Modernization Act was introduced by Senators Lummis and Barrasso, and Representative Harriet Hageman in July 2025.

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