H.B. No. 986 introduces a new subchapter, Subchapter N, to Chapter 403 of the Government Code, establishing a Budget Savings Program administered by the comptroller of public accounts. The program aims to provide financial savings to the state budget and enhance efficiency. It allows qualifying taxpayers to designate a portion of their school district maintenance and operations ad valorem taxes to be used as grants for tuition payments for eligible students attending qualifying schools. The bill outlines definitions for key terms, eligibility criteria for students, and the process for taxpayers to participate in the program, including the submission of a budget savings form.

Additionally, the bill establishes a Budget Savings Account within the foundation school fund, which will be funded by transfers from the comptroller and other appropriations. The account's funds are designated solely for awarding grants for tuition payments. The comptroller is tasked with adopting rules for the program's implementation, including the prevention of fraud and the calculation of savings to the state. The bill also includes provisions for the constitutionality of the new subchapter to be determined in a district court in Travis County, with specific guidelines for appeals. The act is set to take effect on September 1, 2025.

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