House Bill No. 3434 seeks to amend the Education Code by prohibiting public institutions of higher education in Texas from allocating any portion of designated tuition for student financial assistance. The new section, 56.0093, explicitly states that institutions cannot set aside any amount of tuition charged to resident students for the purpose of providing financial aid to enrolled students. This change aims to ensure that designated tuition is fully utilized for its intended purpose without being diverted to financial assistance programs.

Additionally, the bill repeals Subchapter B of Chapter 56, which may contain previous provisions related to tuition and financial assistance. The new regulations will take effect starting with tuition charged for the spring semester of 2026, while any tuition charged before that date will still be governed by the existing laws prior to this amendment. The bill is set to become effective on September 1, 2025.

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