House Bill No. 3559 aims to amend the Education Code by adding Section 56.010, which prohibits public institutions of higher education in Texas from considering certain factors when awarding student financial assistance. Specifically, the bill states that institutions may not award financial aid based on a student's race, sex, gender, or sexual orientation, nor may they pay for or advertise such assistance based on these criteria. This legislation seeks to ensure that financial aid decisions are made without regard to these personal characteristics.

The provisions of this bill will take effect on September 1, 2025, and will apply to student financial assistance awarded for the fall semester of 2026 and beyond. Any financial assistance awarded prior to this date will continue to be governed by the existing laws in effect at that time. This transition period allows institutions to adjust their policies and practices in accordance with the new regulations.

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