Bill > HB3434

This bill prohibits public institutions of higher education in Texas from setting aside a portion of designated tuition for student financial assistance, effectively ending a practice where colleges would allocate a percentage of tuition fees to help fund financial aid for students. Currently, some institutions use a portion of tuition revenues to create internal scholarship or financial assistance programs, but this legislation would make such set-asides illegal. Specifically, the bill amends the Texas Education Code by adding Section 56.0093, which expressly forbids institutions from allocating any amount of tuition charged to resident students under Section 54.0513 for financial assistance purposes. The changes will take effect for tuition charged starting in the 2026 spring semester, with the entire act becoming effective on September 1, 2025. By removing the ability to set aside tuition funds for financial aid, the bill could potentially impact how universities support students' educational expenses, potentially shifting the financial aid burden to other funding sources or reducing overall student assistance.

Education

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3434