Relating to the maximum number of nonresident scholarship students permitted to pay resident tuition and fees at certain public institutions of higher education.

This bill limits the number of nonresident scholarship students who can pay in-state tuition at Texas public universities. It sets a cap of 5% of total students for most institutions, or up to 20% for schools in regions with below-average population growth and verified campus capacity. The Texas Higher Education Coordinating Board will establish implementing rules, and the policy takes effect for the 2025-2026 academic year. It directly affects public universities and nonresident students receiving scholarships that qualify for in-state tuition rates.