Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the State Budget And Legislation topic
No spam. Unsubscribe anytime.
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 and TEG programs, expanding access compared with current capacity.
Key legislative changes described to the committee - Texas Grant/TEOG/TEG funding increase: the additional $328 million was described as intended to raise the share of eligible students served to about 68%. - Top-quartile guarantee: the budget provides a path to guarantee financial aid for students graduating in the top 25% of their high school class; Wyatt said the legislature structured the budget to provide that predictability. - Portability for TEOG transfers: the budget treats students who receive a TEOG at a two‑year college and later transfer to a four‑year institution as Texas Grant renewal students (if they meet other eligibility requirements), to reduce interruption in support.
Statutory and program changes described by Wyatt - HB 300 (Texas Armed Services Scholarship Program/TASP): sets a September 30 deadline for legislative nominations and directs the coordinating board to designate a staff scholarship coordinator for the program; the bill also updates eligibility for Texas State Guard members. Wyatt said changes will take effect in the 2025–26 academic year. - FAST program changes: bills clarified high‑school enrollment definitions and eligibility windows (the committee heard references to HB 120 and SB 1786 as clarifying enrollment and disadvantaged status rules for FAST). The changes also specify that certain districts may participate beginning 2025–26. - Eligibility expansion bills: HB 3041 (nontraditional secondary education students) was described as making graduates of non‑accredited private schools and homeschools eligible for Texas Grant and top‑10% scholarship programs beginning fall 2026. - SB 2995 (financial aid displacement advisory): requires the coordinating board to develop an advisory institutions must use to notify students when private scholarships or other awards reduce institutional need‑based aid. Wyatt said the bill is prescriptive about language institutions must include. - Other items: the committee heard that HB 1105 creates a tuition and fee exemption for certain paramedics; HB 1211 raises the maximum enrollment age for students formerly in DFPS conservatorship from 25 to 27; and HB 5646 requires in‑state tuition for students who are cadets or enrolled in ROTC, effective fall 2025.
Committee reaction and next steps Committee members asked how quickly the new program or rule changes will be implemented and how they will affect awarding timelines and system processes. Wyatt cautioned that the governor has a 20‑day veto window following sine die and that the coordinating board will publish operational guidance and rule changes as staff translate statute into program rules. The board staff will follow up with detailed implementation guidance and training for institutions and district partners as statutory language and the General Appropriations Act are finalized.
What the board will do next: staff said they will analyze bill language and publish guidance and training for institutions on timelines, eligibility and required student notifications.
