TX HB3574

Increases the cap on nonresident scholarship students allowed to pay in-state tuition from 5% to 20% of total enrollment at qualifying public higher education institutions

Qualifying institutions must be located in local workforce development areas with population growth rates below the statewide average according to the most recent federal decennial census

Qualifying institutions must also demonstrate sufficient capacity to support additional nonresident students based on the Texas Higher Education Coordinating Board's space usage efficiency report

Institutions not meeting the qualifying criteria remain subject to the existing 5% cap on nonresident scholarship students paying resident tuition rates

Applies beginning with the 2025-2026 academic year and takes effect immediately upon two-thirds vote or September 1, 2025