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Texas Legislature adds $328 million for student financial aid; new deadlines and program changes detailed
Summary
A coordinating board official told the Financial Aid Advisory Committee that the 2025 legislative session increased state financial-aid funding by $328 million and enacted multiple bills affecting program eligibility, portability and disclosures.
The Texas Legislature added $328,000,000 in additional funding for state financial-aid programs, a 22% increase over the previous biennium, John Wyatt, senior director for government relations at the Texas Higher Education Coordinating Board, told the Financial Aid Advisory Committee on June 11, 2025.
Wyatt said the budget changes will make aid “more predictable, portable, and accessible” by guaranteeing funding pathways for certain students and by changing program rules. “The legislature added $328,000,000 in additional funding, across our state's financial aid programs, and that represents a 22% increase,” Wyatt said. He said the appropriation aims to guarantee aid for high school graduates who finish in the top 25% of their class and to make transfers from two‑year to four‑year institutions more portable for TEOG recipients.
Why it matters: committee members said the changes could affect campus award policies and student advising. Wyatt said the budget will fund roughly 68% of eligible students in TEOG, Texas Grant…
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