Relating to the maximum number of nonresident scholarship students permitted to pay resident tuition and fees at certain public institutions of higher education.
Summary
SB 1835 would revise Texas Education Code Section 54.213 to limit how many nonresident scholarship students may pay resident tuition and fees at certain public institutions of higher education. The bill applies to nonresident students who are U.S. citizens, lawful permanent residents, holders of valid U.S. nonimmigrant visas, or otherwise lawfully present in the United States. It keeps the basic resident-tuition scholarship program in place, but adds a cap on the number of students at an institution who may receive resident tuition treatment under this section in a given semester.
Under the bill, the number of students paying resident tuition under this scholarship provision generally may not exceed 5% of the institution’s enrollment from the same semester of the prior academic year. A higher 20% cap is allowed for certain institutions identified by Texas Higher Education Coordinating Board rule if they are located in slower-growing workforce development areas and have enough space capacity according to the board’s space usage efficiency report. The coordinating board must adopt rules to implement the section, and the changes apply beginning with the 2025-2026 academic year.
Impact
The bill would amend state higher education law by imposing a statewide numerical limit on the use of resident tuition for qualifying nonresident scholarship students, while creating a narrower exception for institutions in qualifying low-growth areas with available capacity. It would affect public institutions of higher education, the Texas Higher Education Coordinating Board, and nonresident students eligible for scholarship-based resident tuition treatment. The bill’s changes would take effect for the 2025-2026 academic year, with rulemaking required to administer the new caps.
Sentiment
The available voting history suggests the bill advanced with majority support but not unanimity, indicating a generally favorable reception with some opposition. Senate votes on related procedural and passage actions were close enough to show meaningful dissent, while the bill continued through committee and was reported to Calendars in the House. No committee transcript is available, so the record reflects support for the bill’s overall framework but also some resistance to its restrictions or implementation details.
Contention
The main point of contention appears to be the bill’s new cap on the number of nonresident scholarship students who can receive resident tuition, especially the 5% limit for most institutions. Opponents may view the cap as restricting institutional flexibility or access for qualifying students, while supporters likely see it as a way to control the scale of resident-tuition discounts and align enrollment with capacity. The higher 20% exception for certain institutions in slower-growing areas suggests an attempt to balance those concerns, but it also introduces rulemaking and classification issues for the Higher Education Coordinating Board.
Identical
Relating to the maximum number of nonresident scholarship students permitted to pay resident tuition and fees at certain public institutions of higher education.