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

SB 1835 sets limits on the number of nonresident students who can pay in-state tuition rates at Texas public universities through scholarship programs. It caps nonresident scholarship students at 5% of total enrollment for most institutions, or up to 20% for schools in areas with slower population growth (per census data) that have verified facility capacity. The bill requires the Texas Higher Education Coordinating Board to create rules for implementation and applies starting the 2025-2026 academic year. This directly affects public universities and nonresident scholarship recipients who would otherwise pay higher out-of-state tuition fees.