HB 2654

relating to the establishment of the Texas Promise Grant Program
for certain students at two-year public institutions of higher
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Chapter 56, Education Code, is amended by adding
Subchapter V to read as follows:
SUBCHAPTER V.  TEXAS PROMISE GRANT PROGRAM
Sec. 56.651.  DEFINITIONS.  In this subchapter:
(1)  "Coordinating board" means the Texas Higher
(2)  "Eligible institution" means:
(B)  a public technical institute; or
(3)  "Program" means the Texas Promise Grant Program
established under this subchapter.
(4)  "Public junior college," "public technical
institute," and "public state college" have the meanings assigned
Sec. 56.652.  PROGRAM PURPOSE.  The purpose of the Texas
Promise Grant Program is to provide:
(1)  assistance in the payment of tuition and mandatory
fees to enable eligible students to attend two-year institutions of
(2)  an incentive for eligible students to complete an
associate degree or certificate program at two-year institutions of
Sec. 56.653.  ADMINISTRATION OF PROGRAM; AWARD OF GRANT AND
INCENTIVE BONUS.  (a)  The coordinating board shall administer the
program and adopt any rules necessary to implement the program or
this subchapter.  The coordinating board shall consult with the
student financial aid officers of eligible institutions in
(b)  The coordinating board shall award a grant and incentive
bonus to each eligible student under the program.
Sec. 56.654.  INITIAL ELIGIBILITY FOR GRANT.  (a)  To be
eligible initially for a grant under the program, a person must:
(1)  be a resident of this state as determined by
(2)  have graduated from high school or received a high
school equivalency certificate within the last three years;
(3)  be enrolled in an associate degree or certificate
program at an eligible institution;
(4)  be enrolled as an entering student for at least
one-half of a full course load for an entering student in the
associate degree or certificate program, as determined by the
(5)  have applied for any available financial aid or
(6)  comply with any additional nonacademic or
nonfinancial requirement adopted by the coordinating board under
(b)  A person is not eligible to receive a grant under the
(A)  a certificate for completion of a certificate
(B)  an associate or baccalaureate degree; or
(2)  completed more than 90 semester credit hours or
the equivalent at an institution of higher education, excluding
semester credit hours or the equivalent earned for a dual credit
(c)  A person may not receive a grant under the program for
more than 75 semester credit hours or the equivalent.
(d)  A person's eligibility for a grant under the program
ends on the third anniversary of the initial award of a grant under
the program to the person and the person's enrollment in an eligible
Sec. 56.655.  CONTINUING ELIGIBILITY AND ACADEMIC
PERFORMANCE REQUIREMENTS.  (a)  After initially qualifying for a
grant under the program, a person may continue to receive a grant
under the program during each semester or term in which the person
is enrolled at an eligible institution only if the person:
(1)  is enrolled in an associate degree or certificate
program at an eligible institution;
(2)  is enrolled for at least one-half of a full course
load for a student in an associate degree or certificate program, as
determined by the coordinating board;
(3)  makes satisfactory academic progress toward an
associate degree or certificate; and
(4)  complies with any additional nonacademic or
nonfinancial requirement adopted by the coordinating board.
(b)  If a person fails to meet any of the requirements of
Subsection (a) after the completion of any semester or term, the
person may not receive a grant under the program during the next
semester or term in which the person enrolls.  A person may become
eligible to receive a grant under the program in a subsequent
semester or term if the person:
(1)  completes a semester or term during which the
student is not eligible for a grant; and
(2)  meets all the requirements of Subsection (a).
(c)  For the purpose of this section, a person makes
satisfactory academic progress toward an associate degree or
(1)  in the person's first academic year, the person
meets the satisfactory academic progress requirements of the
institution at which the person is enrolled; and
(2)  in the subsequent academic year, the person:
(A)  completes at least 75 percent of the semester
credit hours or the equivalent attempted in the person's most
(B)  has earned an overall grade point average of
at least 2.5 on a four-point scale or the equivalent on coursework
previously attempted at institutions of higher education.
(d)  A person who is eligible to receive a grant under the
program continues to remain eligible to receive the grant if the
person enrolls in or transfers to another eligible institution.
(e)  The coordinating board shall adopt rules to allow a
person who is otherwise eligible to receive a grant under the
program, in the event of a hardship or for other good cause shown,
including a showing of a severe illness or other debilitating
condition that may affect the person's academic performance or a
showing that the person is responsible for the care of a sick,
injured, or needy person and that the person's provision of care may
affect the person's academic performance, to receive a grant under
(1)  while enrolled in a number of semester credit
hours that is less than the number of semester credit hours or the
equivalent required under Subsection (a)(2); or
(2)  if the student's grade point average or completion
rate falls below the satisfactory academic progress requirements of
Sec. 56.656.  GRANT USE.  A grant awarded under the program
must be applied first to the payment of tuition and mandatory fees
Sec. 56.657.  GRANT AMOUNT.  (a)  The amount of a grant
awarded to an eligible student under the program for a semester or
other academic term in which the student is enrolled at an eligible
institution is an amount not to exceed the greater of:
(1)  the difference between the amount of tuition and
mandatory fees charged to the student by the institution for that
semester or term and the amount of any other gift aid, including
state or federal grants or scholarships, awarded to the student for
(b)  The coordinating board may adopt rules that allow the
coordinating board to decrease, in proportion to the number of
semester credit hours or the equivalent in which a student is
enrolled, the amount of a grant award under Subsection (a)(2) to a
student who is enrolled in less than a full course load for a
student in an associate degree or certificate program, as
determined by the coordinating board.
(c)  A grant may not be awarded under the program to an
eligible student for a semester or other academic term until any
other gift aid for which the student is eligible has been awarded to
the student and the amount of tuition and mandatory fees owed by the
student has been established for purposes of determining the
appropriate amount of the student's grant under Subsection (a).
(d)  The coordinating board shall issue to each eligible
student a certificate indicating the amount of the grant awarded to
Sec. 56.658.  INCENTIVE BONUS.  (a)  A student receiving a
grant under the program is eligible to receive an incentive bonus on
completion of the student's associate degree or certificate program
(b)  The amount of an incentive bonus awarded under this
Sec. 56.659.  NOTIFICATION OF PROGRAM; RESPONSIBILITIES OF
SCHOOL DISTRICTS.  (a)  The coordinating board, in consultation
with all eligible institutions, shall prepare materials designed to
inform prospective students, their parents, and high school
counselors about the program and eligibility for a grant and
incentive bonus under the program.  The coordinating board shall
distribute to each eligible institution and to each school district
a copy of the materials prepared under this section.
(b)  Each school district shall notify its high school
students, those students' teachers and school counselors, and those
students' parents or guardians of the program and the eligibility
SECTION 2.  (a)  The Texas Higher Education Coordinating
Board shall adopt rules to administer Subchapter V, Chapter 56,
Education Code, as added by this Act, as soon as practicable after
the effective date of this Act.  For that purpose, the coordinating
board may adopt the initial rules in the manner provided by law for
(b)  The Texas Higher Education Coordinating Board shall
begin awarding grants and incentive bonuses under Subchapter V,
Chapter 56, Education Code, as added by this Act, for the first
academic year for which money is appropriated for that purpose,
except that the coordinating board may not award grants or
incentive bonuses under that subchapter for an academic year before
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.