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 new section will take effect starting with the 2026 fall semester, meaning that any financial assistance awarded prior to that time will still be governed by the existing laws. The bill is set to take effect on September 1, 2025, allowing institutions time to adjust their policies and practices in accordance with the new regulations.

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