[2] Its assets include many publicly owned lands within Texas and various other investments; as of the end of fiscal 2020 (August 31), the fund had an endowment of $48.3 billion.
Royalties on oil and gas extraction are the fund's major source of revenues.
[3] The General Land Office then reinvests these revenues and manages the investments.
Because Texas's historical territorial waters originated with its period as a sovereign state, the US Supreme Court ruled in United States v. Louisiana (1960) 363 U.S. 1 (1960) that Texas was in the unique position of owning territory out to three leagues (10.35 miles) from its coastline.
These lands were also added to the Permanent School Fund, further enlarging its assets.