HB 3938

relating to the formation of a public education scholarship
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Chapter 29, Education Code, is amended by adding
SUBCHAPTER G.  PUBLIC EDUCATION SCHOLARSHIP PROGRAM
Sec. 29.202.  DEFINITIONS.  In this subchapter:
(1)  "Eligible child" or "child eligible to receive a
public education scholarship" means a child who
(A)  is eligible to attend school under Section
(B)  meets the requirements in 29.202 of the
(C)  was enrolled in a public school in the
preceding year or is enrolling in prekindergarten, kindergarten, or
first grade for the first time in 2025.
(2)  A school district shall annually notify the
parent, guardian, or custodian of each eligible child of the
child's eligibility for scholarship as provided by this subchapter
no later than 30 days before the beginning of the school year.
Sec. 29.203.  FINANCING.  (a)  A child's public education
scholarship is equal to the amount of maintenance and operations
property tax paid for the child's primary residence to the
corresponding public school district or the full amount of the
basic allotment, whichever is less.  In the event there is more than
one eligible child residing at the residence, the amount of the
scholarship for each child shall be a pro-rata share of the total
amount.  A scholarship for one child cannot be used for another
(b)  In the event the child lives in a single-family home or a
multi-family dwelling owned by an unaffiliated entity and the
parent or guardian rents, the child is eligible for the amount of
maintenance and operations property tax paid that corresponds to
the pro-rata share of the dwelling rented.
(c)  A child's public education scholarship is the
entitlement of the child, under the supervision of the child's
parent, guardian, or custodian, and is not an entitlement of any
(d)  In order to receive the amount of the scholarship, a
parent must present proof of enrollment at an educational
institution, other than the public school to which the student is
zoned, to the county tax office.  This proof must be renewed
annually on or before January 1 of each year.
(e)  The parent shall be issued a property tax refund via an
electronic payment or paper check in the amount of the scholarship
within 30 days of presenting the proof to the county tax office.
(f)  Upon graduation or withdrawal of the eligible student,
the parent will no longer be allowed to receive the property tax
refund allowed under this section.
(g)  If a child enrolls in a public school after receiving a
scholarship under this section, the parent shall pay a pro-rata
share of the scholarship back to the county that issued the refund
SECTION 2.  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.