H.B. No. 3938 proposes the establishment of a public education scholarship program in Texas, which is to be added as Section 29.202 to Chapter 29 of the Education Code. The bill defines an "eligible child" as one who meets specific criteria, including being eligible to attend school, having been enrolled in a public school the previous year, or enrolling in prekindergarten, kindergarten, or first grade for the first time in 2025. School districts are required to notify parents or guardians of each eligible child about their scholarship eligibility at least 30 days before the school year begins.

The bill outlines the financing of the scholarship, which will be equal to the maintenance and operations property tax paid for the child's primary residence or the basic allotment amount, whichever is less. It specifies that if multiple eligible children reside at the same address, the scholarship amount will be divided among them. Additionally, parents must provide proof of enrollment at a non-public school to receive the scholarship, which will be refunded through a property tax refund process. The bill also includes provisions for repayment if a child who received a scholarship later enrolls in a public school. The act will take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if not.

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