Texas Legislature Allocates $400M for Higher Education Accessibility and Financial Aid Expansion

The Higher Education Coordinating Board (THECB) of Texas held a significant meeting on July 23, 2025, focusing on strategic investments and legislative developments that will enhance higher education accessibility and support for students across the state.

Key discussions highlighted the Texas legislature's commitment to improving account accessibility, predictability, and transferability in higher education. This commitment is reflected in a substantial funding increase of 22% over the previous biennium, amounting to $320 million dedicated to student financial aid. This funding will provide guaranteed state financial aid to high school students graduating in the top 25% of their class, ensuring they have predictable support as they transition to higher education.

The meeting also addressed the expansion of financial aid programs, increasing the number of eligible students served by the Texas Grant, Texas Educational Opportunity Grant (TEOG), and other initiatives to 67.5%. Additionally, the maximum award for the Texas Armed Services Scholarship Program will double from $15,000 to $30,000, further supporting students pursuing higher education.

In terms of legislative actions, more than 75 bills impacting THECB were passed this session. Notably, Senate Bill 2314 aims to streamline college and career planning through tools like My Texas Future and Direct Admissions. This bill mandates that high school students opt into direct admissions and requires colleges to link to My Texas Future on their admissions websites, enhancing accessibility for students.

Another important development is the designation of the second full week of October as Free College Application Week, allowing Texas students to apply to public colleges and universities without application fees. This initiative is expected to lower barriers and encourage more students to pursue higher education.

Lastly, Senate Bill 1786 focuses on community college outcomes-based funding and aims to improve career and technical education by better aligning with workforce needs. This bill emphasizes collaboration with the Texas Education Agency and the Workforce Commission to enhance educational outcomes and workforce readiness.

Overall, the meeting underscored a strong legislative push towards making higher education more accessible and supportive for Texas students, ensuring they are well-prepared for their futures.