By: Howard H.B. No. 4303

A BILL TO BE ENTITLED

AN ACT

relating to the establishment of the Texas First Generation Matching Grant Program for certain students at public institutions of higher education.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 56, Education Code, is amended by adding Subchapter N to read as follows:

SUBCHAPTER N. TEXAS FIRST GENERATION MATCHING GRANT PROGRAM

Sec. 56.331. DEFINITIONS. In this subchapter:

(1) "Coordinating board" means the Texas Higher Education Coordinating Board.

(2) "Eligible institution" means an institution of higher education that meets the eligibility criteria adopted by the coordinating board under Section 56.338.

(3) "First generation college student" means a student whose parents have not earned a baccalaureate degree or a higher degree, including a student who regularly resides with and receives support from only one parent who has not earned a baccalaureate degree.

(4) "Program" means the Texas First Generation Matching Grant Program established under this subchapter.

Sec. 56.332. PROGRAM ESTABLISHMENT AND ADMINISTRATION. The coordinating board shall establish and administer the Texas First Generation Matching Grant Program to provide financial assistance to eligible first generation college students enrolled at eligible institutions.

Sec. 56.333. STUDENT ELIGIBILITY REQUIREMENTS. (a) To be initially eligible to participate in the program for an academic year, a student must:

(1) be a first generation college student who resides in this state;

(2) be a citizen of the United States or an eligible noncitizen described by 20 U.S.C. Section 1091(a)(5);

(3) be enrolled at an eligible institution in an associate or baccalaureate degree program;

(4) be enrolled in at least six semester credit hours or the equivalent;

(5) complete the Free Application for Federal Student Aid (FAFSA);

(6) have financial need as determined by the eligible institution based on the United States Department of Education Student Aid Index (SAI) formula;

(7) have not previously been awarded a baccalaureate degree; and

(8) comply with any additional eligibility requirement adopted by the coordinating board under Section 56.338.

(b) After initially qualifying for a grant under the program, a student may continue to receive a grant under the program for a subsequent academic year if the student continues to meet all eligibility requirements described by Subsection (a).

Sec. 56.334. APPLICATION PROCESS. An eligible student may apply for the program through the financial aid office of the eligible institution in which the student is enrolled.

Sec. 56.335. GRANT AMOUNT. (a) The amount of a grant awarded to an eligible student for an academic year under the program shall be determined by the eligible institution at which the student is enrolled based on:

(1) the student's financial need determined in accordance with Section 56.333(a)(6); and

(2) the total amount of funding available to the institution for distribution under the program for that academic year.

(b) The amount of a grant awarded to an eligible student for an academic year may not exceed the student's estimated cost of attendance for the academic year.

Sec. 56.336. FUNDING. (a) The coordinating board and each eligible institution may solicit and accept gifts, grants, and donations from any public or private source for the program.

(b) From money appropriated by the legislature or otherwise available to the coordinating board for the program, the coordinating board shall provide to each eligible institution matching funds in the amount of at least one dollar for each dollar received by the institution for the program from a private source.

(c) Matching funds received by an eligible institution under this section may be used only to provide grants under the program.

(d) To qualify to receive matching grant funds for an academic year, an eligible institution must annually certify to the coordinating board, not later than the date prescribed by coordinating board rule, the amount of private contributions received by the institution for the program.

Sec. 56.337. REPORTING AND ACCOUNTABILITY. An eligible institution annually shall submit to the coordinating board and each standing committee of the legislature with primary jurisdiction over higher education a written report that includes:

(1) the number of students to whom the institution awarded grants under the program for the most recent academic year;

(2) the total amount of private contributions the institution received and certified for matching funds in accordance with Section 56.336;

(3) demographic information of students described by Subdivision (1); and

(4) the retention and graduate rates of students to whom the institution has awarded grants under the program.

Sec. 56.338. RULES. The coordinating board shall adopt rules for the administration of the program, including:

(1) any additional criteria for a student to be eligible to participate in the program, including application requirements;

(2) eligibility criteria for an institution of higher education to participate in the program;

(3) procedures to oversee the disbursement of grant funds awarded by eligible institutions under the program; and

(4) rules to ensure compliance with any relevant federal or state law or rule.

SECTION 2. The Texas Higher Education Coordinating Board shall adopt rules for the administration of Subchapter N, Chapter 56, Education Code, as added by this Act, as soon as practicable after the effective date of this Act.

SECTION 3. Subchapter N, Chapter 56, Education Code, as added by this Act, applies beginning with the 2026-2027 academic year.

SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.