H.B. No. 986 introduces a new Budget Savings Program under Chapter 403 of the Government Code, aimed at providing financial savings to the state budget and enhancing efficiency. The bill establishes a Budget Savings Account within the foundation school fund, which will be administered by the comptroller of public accounts. 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 at 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 mandates the comptroller to adopt rules for the program's implementation, including the format of the budget savings form and measures to prevent fraud. It specifies that the funds in the Budget Savings Account can only be used for tuition grants and allows for a percentage of reimbursements to be deducted to cover administrative costs. The bill also includes provisions for the constitutionality of the new subchapter to be determined in a district court in Travis County, with an accelerated appeal process to the Texas Supreme Court. The act is set to take effect on September 1, 2025.

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