Bill Text: TX SB2995 | 2025-2026 | 89th Legislature | Enrolled

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Bill Title: Relating to the displacement of student financial aid at a public institution of higher education.

Sponsorship: Partisan Bill (Democrat 3)

Status: (Passed) 2025-06-20 - Effective on 9/1/25 [SB2995 Detail]

Download: Texas-2025-SB2995-Enrolled.html

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S.B. No. 2995

AN ACT
relating to the displacement of student financial aid at a public
institution of higher education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 56, Education Code, is
amended by adding Section 56.0094 to read as follows:
Sec. 56.0094. FINANCIAL AID DISPLACEMENT. (a) In this
section:
(1) "Coordinating board" means the Texas Higher
Education Coordinating Board.
(2) "Gift aid" means a grant, scholarship, exemption,
waiver, or other financial aid awarded to a student without a
requirement to repay the aid or earn the aid through work.
(b) The coordinating board shall develop a financial aid
displacement advisory for use by institutions of higher education
under this section that contains:
(1) a statement bordered by a line one point in weight
in a font not less than 14 points in size in the following form:
"Financial aid displacement occurs when a student's
financial aid is reduced due to receipt of a private scholarship or
other reasons identified in this advisory. This practice occurs in
Texas and should be taken into consideration while applying for
financial aid. The institution to which you are applying is
providing in this application a list of recommendations describing
how to maximize your financial aid and ensure that you are prepared
when financial aid displacement occurs. You are encouraged to
reach out to the institution to which you are applying to receive
advice on how to avoid financial aid displacement."; and
(2) a list of the most common reasons, as identified by
the coordinating board, for which the amount of gift aid awarded may
be revised or reduced under this chapter.
(c) Each institution of higher education shall include in
the institution's admission application form or provide in the
institution's admission application form a link to the financial
aid displacement advisory developed under Subsection (b) and, in
plain language:
(1) how to apply for gift aid at the institution;
(2) the timeline for financial aid processes at the
institution, including application deadlines, suggested deadlines
to report gift aid, and other deadlines of which the institution
determines a prospective student should be made aware;
(3) a list of recommendations to aid a prospective
student in maximizing gift aid awards, as determined by the
institution;
(4) a list of recommendations for a prospective
student to ensure the student's gift aid will not be reduced; and
(5) contact information for an employee or office at
the institution from whom a prospective student may seek advice
regarding gift aid.
(d) The coordinating board shall adopt rules necessary to
implement this section.
SECTION 2. Section 56.0094, Education Code, as added by
this Act, applies beginning with the 2025-2026 academic year.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 2995 passed the Senate on
May 12, 2025, by the following vote: Yeas 30, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 2995 passed the House on
May 28, 2025, by the following vote: Yeas 81, Nays 57, one
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor