The first mention of a public university in Texas can be traced to the 1827 constitution for the Mexican state of Coahuila y Tejas. Although Title 6, Article 217 of the Constitution promised to establish public education in the arts and sciences, no action was taken by the Mexican government. After Texas obtained its independence from Mexico in 1836, the Texas Congress adopted the Constitution of the Republic, which, under Section 5 of its General Provisions, stated "It shall be the duty of Congress, as soon as circumstances will permit, to provide, by law, a general system of education."

On April 18, 1838, "An Act to Establish the University of Texas" was referred to a special committee of the Texas Congress, but was not reported back for further action. On January 26, 1839, the Texas Congress agreed to set aside fifty leagues of land—approximately 288,000 acres (117,000 ha)—towards the establishment of a publicly funded university. In addition, 40 acres (16 ha) in the new capital of Austin were reserved and designated "College Hill". (The term "Forty Acres" is colloquially used to refer to the University as a whole. The original 40 acres in the area from Guadalupe to Speedway and 21st Street to 24th Street.)

In 1845, Texas was annexed into the United States. The state's Constitution of 1845 failed to mention higher education. On February 11, 1858, the Seventh Texas Legislature approved O.B. 102, an act to establish the University of Texas, which set aside $100,000 in United States bonds toward construction of the state's first publicly funded university (the $100,000 was an allocation from the $10 million the state received pursuant to the Compromise of 1850 and Texas's relinquishing claims to lands outside its present boundaries). The legislature also designated land reserved for the encouragement of railroad construction toward the university's endowment. On January 31, 1860, the state legislature, wanting to avoid raising taxes, passed an act authorizing the money set aside for the University of Texas to be used for frontier defense in west Texas to protect settlers from the alleged attacks of Native peoples.

Texas's secession from the Union and the American Civil War delayed repayment of the borrowed monies. At the end of the Civil War in 1865, The University of Texas's endowment was just over $16,000 in warrants[22] and nothing substantive had been done to organize the university's operations. This effort to establish a University was again mandated by Article 7, Section 10 of the Texas Constitution of 1876 which directed the legislature to "establish, organize and provide for the maintenance, support and direction of a university of the first class, to be located by a vote of the people of this State, and styled "The University of Texas"