HB 4303

relating to the establishment of the Texas First Generation
Matching Grant Program for certain students at public institutions
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Chapter 56, Education Code, is amended by adding
Subchapter N to read as follows:
SUBCHAPTER N.  TEXAS FIRST GENERATION MATCHING GRANT PROGRAM
Sec. 56.331.  DEFINITIONS.  In this subchapter:
(1)  "Coordinating board" means the Texas Higher
(2)  "Eligible institution" means an institution of
higher education that meets the eligibility criteria adopted by the
coordinating board under Section 56.338.
(3)  "First generation college student" means a student
whose parents have not earned a baccalaureate degree or a higher
degree, including a student who regularly resides with and receives
support from only one parent who has not earned a baccalaureate
(4)  "Program" means the Texas First Generation
Matching Grant Program established under this subchapter.
Sec. 56.332.  PROGRAM ESTABLISHMENT AND ADMINISTRATION.  The
coordinating board shall establish and administer the Texas First
Generation Matching Grant Program to provide financial assistance
to eligible first generation college students enrolled at eligible
Sec. 56.333.  STUDENT ELIGIBILITY REQUIREMENTS.  (a)  To be
initially eligible to participate in the program for an academic
(1)  be a first generation college student who resides
(2)  be a citizen of the United States or an eligible
noncitizen described by 20 U.S.C. Section 1091(a)(5);
(3)  be enrolled at an eligible institution in an
associate or baccalaureate degree program;
(4)  be enrolled in at least six semester credit hours
(5)  complete the Free Application for Federal Student
(6)  have financial need as determined by the eligible
institution based on the United States Department of Education
Student Aid Index (SAI) formula;
(7)  have not previously been awarded a baccalaureate
(8)  comply with any additional eligibility
requirement adopted by the coordinating board under Section 56.338.
(b)  After initially qualifying for a grant under the
program, a student may continue to receive a grant under the program
for a subsequent academic year if the student continues to meet all
eligibility requirements described by Subsection (a).
Sec. 56.334.  APPLICATION PROCESS.  An eligible student may
apply for the program through the financial aid office of the
eligible institution in which the student is enrolled.
Sec. 56.335.  GRANT AMOUNT.  (a)  The amount of a grant
awarded to an eligible student for an academic year under the
program shall be determined by the eligible institution at which
the student is enrolled based on:
(1)  the student's financial need determined in
accordance with Section 56.333(a)(6); and
(2)  the total amount of funding available to the
institution for distribution under the program for that academic
(b)  The amount of a grant awarded to an eligible student for
an academic year may not exceed the student's estimated cost of
attendance for the academic year.
Sec. 56.336.  FUNDING.  (a)  The coordinating board and each
eligible institution may solicit and accept gifts, grants, and
donations from any public or private source for the program.
(b)  From money appropriated by the legislature or otherwise
available to the coordinating board for the program, the
coordinating board shall provide to each eligible institution
matching funds in the amount of at least one dollar for each dollar
received by the institution for the program from a private source.
(c)  Matching funds received by an eligible institution
under this section may be used only to provide grants under the
(d)  To qualify to receive matching grant funds for an
academic year, an eligible institution must annually certify to the
coordinating board, not later than the date prescribed by
coordinating board rule, the amount of private contributions
received by the institution for the program.
Sec. 56.337.  REPORTING AND ACCOUNTABILITY.  An eligible
institution annually shall submit to the coordinating board and
each standing committee of the legislature with primary
jurisdiction over higher education a written report that includes:
(1)  the number of students to whom the institution
awarded grants under the program for the most recent academic year;
(2)  the total amount of private contributions the
institution received and certified for matching funds in accordance
(3)  demographic information of students described by
(4)  the retention and graduate rates of students to
whom the institution has awarded grants under the program.
Sec. 56.338.  RULES.  The coordinating board shall adopt
rules for the administration of the program, including:
(1)  any additional criteria for a student to be
eligible to participate in the program, including application
(2)  eligibility criteria for an institution of higher
education to participate in the program;
(3)  procedures to oversee the disbursement of grant
funds awarded by eligible institutions under the program; and
(4)  rules to ensure compliance with any relevant
SECTION 2.  The Texas Higher Education Coordinating Board
shall adopt rules for the administration of Subchapter N, Chapter
56, Education Code, as added by this Act, as soon as practicable
after the effective date of this Act.
SECTION 3.  Subchapter N, Chapter 56, Education Code, as
added by this Act, applies beginning with the 2026-2027 academic
SECTION 4.  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.