TITLE 19. EDUCATION

PART 1. TEXAS HIGHER EDUCATION COORDINATING BOARD

CHAPTER 2. ACADEMIC AND WORKFORCE EDUCATION

SUBCHAPTER A. GENERAL PROVISIONS

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 2, Subchapter A, §2.6, concerning Administrative Completeness. Specifically, this amendment establishes clearer criteria that would warrant withdrawing and resubmitting an application for a new degree program based on changes made to the proposal after it is deemed administratively complete by the Coordinating Board.

Texas Education Code, §61.0512, requires the Coordinating Board to specify by rule the elements that constitute a completed application, make a determination of administrative completeness for each application, and review each application based on specific criteria including adequate financing.

Amendments to subsection (c) are designed to clarify for Board staff and institutions what type of information is required for an application to be administratively complete. Requests for additional program information may occur after a program is administratively complete and will not delay a request from being deemed administratively complete.

New subsection (e) specifies changes that significantly alter a proposed budget, intended labor market outcomes, academic focus, or other significant changes.

New subsection (f) requires that institutions obtain documentation of governing board approval of a revised degree program proposal submitted under subsection (e).

Elizabeth Mayer, Assistant Commissioner Academic and Health Affairs, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Elizabeth Mayer, Assistant Commissioner Academic and Health Affairs, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be clearer criteria that would warrant withdrawing and resubmitting an application for a new degree program.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposed rule or information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research or analysis, may be submitted to Elizabeth Mayer, Assistant Commissioner Academic and Health Affairs, P.O. Box 12788, Austin, Texas 78711-2788, or via email at AHAComments@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The amendment is proposed under Texas Education Code, Section 61.0512, which requires the Coordinating Board to specify by rule the elements that constitute a completed application, make a determination of administrative completeness for each application, and review each application based on specific criteria including adequate financing.

The proposed amendment affects Texas Administrative Code, Chapter 2, Subchapter A.

§2.6. Administrative Completeness.

(a) An institution shall [must] submit a complete [fully completed] application for each proposed program for which approval is required that includes:

(1) each element or item of information required by this subchapter;

(2) each element or item of information required by the subchapter in this chapter governing the type of program approval required;

(3) the required Board form for the type of program approval required; and

(4) fully executed certifications.

(b) Board Staff shall determine whether an application is administratively complete and notify the institution not later than the fifth business day after receipt.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 12, 2026.

TRD-202600064

Douglas Brock

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: February 22, 2026

For further information, please call: (512) 427-6182

CHAPTER 4. RULES APPLYING TO ALL PUBLIC INSTITUTIONS OF HIGHER EDUCATION IN TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 4, Subchapter A, §4.10, concerning Common Admission Application Forms. Specifically, this amendment will add the definition for private or independent institution of higher education and align language with legislative requirements related to Free College Application Week.

Texas Education Code, §51.762, provides the Coordinating Board with the authority to adopt rules for the Common Admission Application Forms, and §61.0731, provides the Coordinating Board with the authority to establish rules to implement Free College Application Week.

Rule 4.10, Common Admission Application Forms, is amended to add the definition for private or independent institution of higher education and align language with legislative requirements related to Free College Application Week.

Dr. Brandon Griggs, Assistant Commissioner for College and Career Advising, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Dr. Brandon Griggs, Assistant Commissioner for College and Career Advising, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the addition of a definition for private or independent institutions of higher education and alignment of language with legislative requirements related to Free College Application Week. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposed rule or information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research or analysis, may be submitted to Dr. Brandon Griggs, Assistant Commissioner for College and Career Advising, P.O. Box 12788, Austin, Texas 78711-2788, or via email at collegeandcareeradvising@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The amendment is proposed under Texas Education Code, Section 51.762, which provides the Coordinating Board with the authority to adopt rules for the Common Admission Application Forms, and Section 61.0731, which provides the Coordinating Board with the authority to establish rules to implement Free College Application Week.

The proposed amendment affects Texas Administrative Code, Title 19, Part 1, Chapter 4, Subchapter A.

§4.10. Common Admission Application Forms.

(a) Definitions. The following words and terms, when used in this subchapter, shall have the following meanings:

(1) Apply Texas Advisory Committee--An advisory committee composed of representatives of general academic teaching institutions, community college districts, public state colleges, and public technical institutes, authorized by Texas Education Code, §51.762 and established in accordance with Board rules, Chapter 1, Subchapter G, §§1.128 - 1.134 of this title (relating to Apply Texas Advisory Committee), to provide the Texas Higher Education Coordinating Board assistance in developing and implementing admissions application forms and procedures.

(2) Apply Texas System--The state's system for applying for admission to Texas public institutions of higher education. The System includes an access portal for completing common application forms; help desks to provide users assistance; and a portal through which Texas high school counselors access status data regarding student progress in applying for admission to and financial aid for college.

(b) Acceptance of Admission Applications.

(1) Public community colleges, public state colleges, and public technical institutes shall accept, and prominently post on their website freshman and all relevant undergraduate [transfer] applications submitted using the Board's electronic common admission application forms.

(2) General academic teaching institutions shall accept and prominently post on their website freshman and all relevant undergraduate [transfer] applications submitted using either the Board's electronic common admission application or printed forms.

(c) Common Application Forms.

(1) General application information provided on the common application form shall include:

(A) biographical information including gender, ethnicity, and date of birth;

(B) educational information including coursework, extracurriculars, community and volunteer service, and awards/honors;

(C) residency; and

(D) certification of information.

(2) Adjustments to Paper Forms. When sending a printed common application form to a student with or without other materials, an institution shall not alter the form in any way and shall include instructions for completing the form, general application information, and instructions for accessing a list of deadlines for all institutions.

(d) Outreach to Public High Schools.

(1) The Coordinating Board shall seek advice and recommendation(s) from high school counselors representative of diverse Texas public school districts regarding the common application and the Apply Texas System.

(2) The Coordinating Board shall ensure that copies of the freshman common admission application forms and information for their use are available to appropriate personnel at each Texas public high school. The Coordinating Board will work with institutions and high schools to ensure that all high schools have access to either the printed or electronic common application forms.

(e) Data to be Collected.

(1) Common application forms are to include questions needed for determining an applicant's residence status with regard to higher education and other information the Board considers appropriate.

(2) Each general academic teaching institution, public community college, public state college, and public technical institute shall collect information regarding gender, race/ethnicity, and date of birth as part of the application process and report this information to the Coordinating Board. Common application forms do not have to be the source of those data.

(3) Institutions of higher education may require an applicant to submit additional information within a reasonable time after the institution has received a common application form.

(f) Publicity. The Board shall publicize in both electronic and printed formats the availability of the common admission forms.

(g) Subcontract for Technical Support. The Coordinating Board shall enter into a contract with a public institution of higher education or third-party vendor to maintain the electronic common application system for use by the public in applying for admission to participating institutions and for distribution of the electronic application to the participating institutions designated by the applicant.

(h) Costs.

(1) Participating institutions may charge a reasonable fee for the filing of a common application form.

(2) Operating costs of the system may be paid for by all institutions required to use the common application plus independent and health-related institutions that contract to use the electronic application.

(3) Each participating institution may pay a portion of the cost based on the percentage of its enrollment compared to the total enrollment of all participating institutions based on the certified enrollment data of the most recent fall semester. The Coordinating Board will monitor the cost of the system and notify the institutions on an annual basis of their share of the cost. Billings for the services for the coming year will be calculated and sent to the institutions by September 1 of each fiscal year and payments must be received no later than December 1 of each fiscal year.

(4) The Coordinating Board may send participating institutions reminders of payment amounts and the due date. Institutions failing to pay their share of the cost by the due date may be denied access to in-coming application data until such time that payments are received.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 12, 2026.

TRD-202600066

Douglas Brock

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: February 22, 2026

For further information, please call: (512) 427-6226

SUBCHAPTER C. TEXAS SUCCESS INITIATIVE

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 4, Subchapter C, §4.52, concerning Applicability. Specifically, this amendment will reinstate the applicability of Texas Success Initiative (TSI), so institutions of higher education may follow best practices in assessing high school students regarding their readiness to engage with college-level coursework, to enable appropriate placements, and to provide targeted and aligned interventions and support to help ensure students' positive experiences with, and successful completion of, the college course.

Texas Education Code, Section 51.344, provides the Coordinating Board with the authority to adopt rules to implement the provisions of Texas Education Code, Chapter 51, Subchapter F-1, concerning the Texas Success Initiative.

Rule 4.52, Applicability, is amended by deleting §4.52(4) for the purpose to reinstate the applicability of TSI to all high school students, so institutions of higher education may follow best practices in assessing students regarding their readiness to engage with college-level coursework, to enable appropriate placements, and to provide targeted and aligned interventions and support to help ensure students' positive experiences with, and successful completion of, the college course.

Daniel R. Perez, Assistant Commissioner for Academic Innovation and Success, has determined that for each year of the first five years the section is in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Daniel R. Perez, Assistant Commissioner for Academic Innovation and Success, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be increased efficiency and effectiveness of student assessment and placement. There are no anticipated economic costs to persons who are required to comply with the section as proposed.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposed rule or information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research or analysis, may be submitted to Dr. Suzanne Morales-Vale, Senior Director, P.O. Box 12788, Austin, Texas 78701, or Suzanne.Morales-Vale@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The amendment is proposed under the Texas Education Code, Section 51.344, which provides the Coordinating Board with the authority to adopt rules to implement the provisions of Texas Education Code, Chapter 51, Subchapter F-1, concerning the Texas Success Initiative.

The proposed amendment affects Texas Education Code, Chapter 51, Subchapter F-1.

§4.52. Applicability.

(a) Except as set out in subsection (b) of this section, this subchapter applies to each entering undergraduate student not otherwise exempt under §4.54 of this subchapter (relating to Exemption).

(b) This subchapter does not apply to the following students, and an institution shall not require these students to demonstrate college readiness pursuant to this subchapter. To verify qualification under §4.52(b)(7)(8)(9), eligibility should be determined at each registration period. The following figure contains the full list of student categories to whom this subchapter does not apply.

Figure: 19 TAC §4.52(b) (.pdf)

[Figure: 19 TAC §4.52(b)]

(1) A student who has earned an associate or baccalaureate degree from an institution of higher education;

(2) A student who transfers to an institution of higher education from a private or independent institution of higher education or an accredited out-of-state institution of higher education and who has satisfactorily completed college-level coursework in the corresponding subject area, as transcribed or otherwise determined by the receiving institution;

(3) A student who is enrolled in a certificate program of one year or less at a public junior college, a public technical institute, or a public state college;

(4) [(5)] A student who is serving on active duty as a member of the armed forces of the United States, the Texas National Guard, or as a member of a reserve component of the armed forces of the United States; [or]

(5) [(6)] A student who on or after August 1, 1990, was honorably discharged, retired, or released from active duty as a member of the armed forces of the United States or the Texas National Guard or service as a member of a reserve component of the armed forces of the United States; or

(6) [(7)] A student who is:

(A) certified as an emergency medical technician under Chapter 773, Health and Safety Code; and

(B) employed more than 20 hours a week by a political subdivision, according to Texas Local Government Code §172.003;

(7) [(8)] A student who is employed more than 20 hours a week as fire protection personnel by Section 419.021, Government Code; or

(8) [(9)] A student who is elected, appointed, or employed more than 20 hours a week to serve as a peace officer described by Article 2A.001, Code of Criminal Procedure, or other law.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 12, 2026.

TRD-202600068

Douglas Brock

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: February 22, 2026

For further information, please call: (512) 427-6299

CHAPTER 22. STUDENT FINANCIAL AID PROGRAMS

SUBCHAPTER L. TOWARD EXCELLENCE, ACCESS, AND SUCCESS (TEXAS) GRANT PROGRAM

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to, Texas Administrative Code, Title 19, Part 1, Chapter 22, Subchapter L, §§22.226 - 22.230, 22.233, 22.234, 22.236, 22.241, and new §22.235, concerning the Toward EXcellence, Access, and Success (TEXAS) Grant Program (Program). Specifically, the amendments and new section will amend definitions, student eligibility, prioritization criteria, and program allocations to ensure alignment with statutory changes made by House Bill (HB) 3041, 89th Texas Legislature, Regular Session, which became effective June 20, 2025, as well as Riders 24 and 60 in the Coordinating Board's bill pattern of the General Appropriations Act (Senate Bill 1), 89th Texas Legislature, Regular Session. The Coordinating Board convened a negotiated rulemaking committee to consider proposed amendments to §22.233 and §22.236, and the proposed new §22.235. The committee reached consensus on all items, and, unless otherwise stated, the proposed rule substantively reflects the committee's determinations. The Coordinating Board will make reports of negotiated rulemaking committees available upon request.

The Coordinating Board is authorized by Texas Education Code, §56.303, to adopt rules necessary for the administration of the Program.

Rule 22.226, Definitions, is amended by replacing the term "continuation grant" with the more conventionally used "renewal grant" and by adding the terms "nontraditional secondary education" and "priority Student Aid Index level." Conforming changes are made throughout the subchapter to reflect the change in terminology to "renewal grant." The definition of "nontraditional secondary education," included to implement HB 3041, 89th Texas Legislature, Regular Session, aligns with the definition for the same term in TEC, §51.9241. The definition of "priority Student Aid Index level" refers to the level described by TEC, §56.303(e), and calculated each year by the Coordinating Board. Additional references to this figure in the proposed rule warrant the creation of a defined term to ensure consistent usage. Nonsubstantive changes are made to the definition of "Target Grant Amount" to update a rule reference to reflect changes to program allocations and to the definition of "Tuition" to replace an outdated rule reference.

Rule 22.227, Eligible Institutions, is amended to make conforming changes relating to the term "renewal grant."

Rule 22.228, Eligible Students, is amended by adding reference in subsection (a)(6)(A) to students who successfully completed a nontraditional secondary education, ensuring these students are considered eligible consistent with HB 3041, 89th Texas Legislature, Regular Session. Subsection (d) is added to codify the Coordinating Board's existing practice of considering a student enrolled in combined baccalaureate-master's degree programs as "enrolled in a baccalaureate program" (and therefore potentially eligible for the Program), provided the student's institution considers the student an undergraduate for federal financial aid purposes. Other nonsubstantive and conforming changes are included to improve the readability of the rule.

Rule 22.229, Satisfactory Academic Progress, is amended by eliminating subsection (b)(3), which had been inadvertently retained during prior rule revisions. This provision cannot apply to a student as the Program is currently administered, and its elimination does not represent a change in administration of the Program. Other nonsubstantive and conforming changes are included to improve the readability of the rule. Similarly, subsection (d) also is unnecessary, as a student's completion rate is no longer calculated as part of satisfactory academic progress criteria for this program, and is eliminated.

Rule 22.230, Discontinuation of Eligibility or Non-Eligibility, is amended to make conforming changes relating to the term "renewal grant."

Rule 22.233, Priority in Grants to Students, is amended by adding additional priority considerations to conform with the requirements of Riders 24 and 60 of the General Appropriations Act (Senate Bill 1), 89th Texas Legislature, Regular Session. Subsection (b) is added, directing institutions to prioritize students who graduated in the top 25 percent of their high school graduating class in one of the two prior years for initial year grants. This provision, as proposed, deviates slightly from the determination of the negotiated rulemaking committee; whereas the committee reached consensus on proposed rule language that allowed for institutions to determine which students met the top 25 percent standard, the Coordinating Board has revised this language to instead allow for an institutional policy for determining top 25 percent status for students whose high schools do not rank students. This aligns with the requirements of Rider 24 and conforms to the legislative intent of providing greater predictability in the offering of state financial aid to high-performing students.

Subsection (c) is added, directing institutions to prioritize students who establish initial year eligibility via the Texas Educational Opportunity Grant (TEOG) pathway described by §22.228(a)(6)(D), which implements the legislative intent regarding predictability associated with Rider 60.

Subsections (f) and (g) are added to further clarify expectations related to top 25 percent and TEOG pathway students. Subsection (f) states that each institution shall ensure that all eligible students who graduate in the top 25 percent of their high school class, have a Student Aid Index at or below the priority level described by §22.233(e), and apply for financial aid before the June 1 receive an initial year grant. The negotiated rulemaking committee reached consensus on this subsection using the state priority deadline as the deadline by which a student must apply for financial aid to be considered for the guarantee described by subsection (f). After the committee convened, however, the Coordinating Board determined that using the priority deadline for this purpose was misaligned with the legislative intent of Rider 24. Use of June 1 preserves the committee's preference for a deadline for resource allocation purposes but aligns with both the legislative intent of the Rider (by occurring after the vast majority of applicable students would have graduated high school and could demonstrate having graduated in the top 25 of their class) and aligns with the graduation requirement described by TEC, §28.0256.

Similarly, subsection (g) states that each institution shall ensure that all eligible students qualifying via the TEOG pathway and who have a Student Aid Index at or below the priority level receive an initial year grant, specifying that institutions may use any funds (not only the restricted funds allocated via §22.235) to accomplish this requirement.

Subsection (h) is amended to include references to students who complete a nontraditional secondary education. These students are still subject to the priority model described by subsection (h), as they can plausibly meet three of the four listed criteria (only two must be met). Other nonsubstantive and conforming changes are included to improve the readability of the rule.

Subsection (i) clarifies that an institution, in establishing whether a student has "present[ed] evidence of successful completion of a nontraditional secondary education" in subsection (h)(1), cannot require any additional evidence or documentation beyond what is required for admissions purposes. Moreover, it clarifies that admission to the institution on the basis of successful completion of a nontraditional secondary education fulfills this requirement.

Rule 22.234, Grant Amounts, is amended by clarifying subsection (a) to note that a TEXAS Grant may not be reduced by any gift aid for which a person is eligible, unless the total amount of the grant plus any gift aid is greater than the student's financial need. This change reflects greater alignment with the program statute. Subsection (d) is redundant with §22.228(c)(3) and is removed.

Rule 22.235, Allocation of Funds- TEOG Pathway, is created to establish the means by which the appropriated funds restricted by Rider 60 are allocated to participating institutions. Subsection (a) describes the methodology, which distributes available funds proportionally among participating institutions based on each institution's share of students meeting the criteria listed in subsection (a)(1). Subsection (b) describes the nature of the funds restriction, limiting use of the allocated funds under the section to initial year grants for students qualifying via the TEOG pathway. Subsection (c) describes the means by which the Coordinating Board will conduct this allocation process as a two-year allocation, as it does with many other state grant programs, starting in Fiscal Year 2028. Subsection (d) notes that institutions' Financial Aid Database submissions are the data source for the allocation. Subsection (e) describes the data review, a preliminary process by which the Coordinating Board supplies data to institutions for review and comment prior to publishing final allocations. Subsection (f) describes the means by which the Coordinating Board will reduce funding levels in the event of an unexpected funding decrease, aligning with a like provision in §22.236.

Rule 22.236, Allocation of Funds - General, is amended to reflect changes to the general program allocation to meet the requirements of Rider 24. Subsection (a) describes the allocation methodology, which differs from the current allocation methodology in two ways. First, a new top 25 percent portion of the allocation is added in subsection (a)(2). This portion of the allocation occurs after the renewal grants portion in subsection (a)(1), which is unchanged. For this portion of the calculation, using Financial Aid Database and CBM00B university admissions report submissions, the Coordinating Board will determine the number of students at each participating institution meeting the criteria described in subsection (a)(2)(A) in the prior-prior year, and multiply that figure by 125 percent of the Target Grant Amount. That figure was selected as an acknowledgement of the legislative intent of the Rider, which is to ensure every institution has sufficient funding to meet the requirement to offer grants to all eligible top 25 percent students. The use of the 125 percent of the Target Grant Amount is for allocation purposes only and does not imply a requirement regarding the amount of any student's grant. The other substantive change to the methodology described in subsection (a) is the exclusion of top 25 percent and TEOG pathway students from the Remaining Initial Grants portion of the calculation in subsection (a)(3). The proportional method of this part of the calculation is unchanged, but these students were removed from the calculation because they are considered elsewhere in the allocation, either in §22.235 (for TEOG pathway) or §22.236(a)(2) (for top 25 percent).

Subsection (b) is added to describe how the general allocation would be conducted in the event that insufficient funds were appropriated for the Program to fully fund the renewal and top 25 percent portions of the calculation. In such a case, available funds for that portion of the calculation (starting with the renewal grants, and then top 25 percent in keeping with grant priority rules) would be distributed proportionally. Subsection (c) describes the means by which the Coordinating Board will conduct this allocation process as a two-year allocation, as it does with many other state grant programs, starting in Fiscal Year 2028. Subsection (d) notes that institutions' Financial Aid Database submissions are the data source for the allocation. Subsection (e) describes the data review, a preliminary process by which the Coordinating Board supplies data to institutions for review and comment prior to publishing final allocations.

Rule 22.241, Tolling of Eligibility for Initial Year Grant, is amended to make conforming changes relating to the term "renewal grant" and to rule citations affected by other proposed changes.

Dr. Charles W. Contero-Puls, Assistant Commissioner for Student Financial Aid Programs, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Dr. Charles W. Contero-Puls, Assistant Commissioner for Student Financial Aid Programs, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the enhanced financial aid predictability for eligible high-performing and transfer students. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposed rule or information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research or analysis, may be submitted to Dr. Charles W. Contero-Puls, Assistant Commissioner for Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711-2788, or via email at SFAPPolicy@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The amendment and new section are proposed under Texas Education Code, Section 56.303, which provides the Coordinating Board with the authority to adopt rules necessary for the administration of the Program.

The proposed amendment and new section affects Texas Administrative Code, Title 19, Part 1, Chapter 22, Subchapter L.

§22.226. Definitions.

In addition to the words and terms defined in §22.1 of this chapter (relating to Definitions), the following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) [(2)] Entering Undergraduate--A student enrolled in the first thirty semester credit hours or their equivalent, excluding hours taken during dual enrollment in high school and courses for which the student received credit through examination.

(2) [(3)] Initial Year Grant--The TEXAS Grant offered in the student's first year in the TEXAS Grant Program.

(5) [(4)] Prior-Prior Year--For allocation purposes, the state fiscal year that began two years earlier than the fiscal year for which the allocation is being calculated.

(6) [(5)] Program--The Toward EXcellence, Access and Success (TEXAS) Grant program.

(8) [(6)] Required Fees--A mandatory fee (required by statute) or discretionary fee (authorized by statute, imposed by the governing board of an institution of higher education) and that an institution of higher education charges to a student as a condition of enrollment at the institution of higher education or in a specific course.

(9) [(7)] Target Grant Amount--An amount set by the Coordinating Board, in consultation with institutions of higher education participating in the TEXAS Grant Program, and used as the recommended average grant amount for the TEXAS Grant Program for a biennium and in establishing renewal grant and initial year grant for top 25 percent student allocations to participating institutions of higher education as described in §22.236(a)(1) and (2) of this chapter (relating to Allocation [and Reallocation] of Funds - General).

(10) [(8)] Tuition--Statutory tuition, designated and/or Board-authorized tuition, as defined in §13.121 [§13.142] of this title (related to Definitions).

§22.227. Eligible Institutions.

(a) Eligibility.

(1) Institutions eligible to make initial year and renewal [continuation] grants in the program are medical or dental units and general academic teaching institutions, other than the public state colleges, as defined in §22.1 of this chapter (relating to Definitions).

(2) No participating institution may, on the grounds of race, color, national origin, gender, religion, age, or disability exclude an individual from participation in, or deny the benefits of the program described in this subchapter.

(3) Each participating institution must follow the Civil Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination in admissions or employment.

(b) Approval.

(1) Agreement. Each eligible institution must enter into an agreement with the Coordinating Board, the terms of which shall be prescribed by the Commissioner, prior to being approved to participate in the program.

(2) Approval Deadline. An eligible institution must enter into an agreement with the Coordinating Board and indicate an intent to participate in the program by April 1 in order for qualified students enrolled in that institution to be eligible to receive grants in the following fiscal year.

(c) Responsibilities. Participating institutions are required to abide by the General Provisions outlined in subchapter A of this chapter.

§22.228. Eligible Students.

(a) Initial Grants. To be eligible to receive [qualify for] an initial year grant, a person must:

(1) be enrolled in a baccalaureate program at a participating institution;

(2) be a resident of Texas, as defined in §22.1 of this chapter (relating to Definitions);

(3) show financial need, as defined in §22.1 of this chapter;

(4) have applied for financial aid through the completion of the Federal Application for Federal Student Aid or, if the student is not eligible for federal financial aid, the Texas Application for State Financial Aid;

(5) meet applicable standards outlined in §22.3 of this chapter (relating to Student Compliance with Selective Service Registration); and

(6) Except as provided under §22.231 of this subchapter (relating to Hardship Provisions), to receive an initial year grant, an otherwise eligible person must enroll in a baccalaureate degree program at a participating institution on at least a three-quarter time basis as:

(A) an entering undergraduate student not later than the end of the sixteenth month after the calendar month in which the person graduated from high school or successfully completed a nontraditional secondary education, as defined in §22.226 of this subchapter (relating to Definitions); [or]

(B) an entering undergraduate student who entered military service not later than the first anniversary of the date of high school graduation and enrolled in an eligible institution no later than twelve months after being released from active duty military service with an Honorable Discharge, General Discharge under Honorable Conditions, or Honorable Separation or Release from Active Duty, as documented by the Certificate of Release or Discharge from Active Duty (DD214) issued by the Department of Defense;

(C) an undergraduate student not later than the end of the twelfth month after the calendar month in which the student received an associate degree; or

(D) an undergraduate student who has:

(i) previously attended another institution of higher education, as defined in §22.1 of this chapter;

(ii) received an initial Texas Educational Opportunity Grant under subchapter M of this chapter (relating to Texas Educational Opportunity Grant Program) for the 2014 fall semester or a subsequent semester;

(iii) completed at least twenty-four semester credit hours at any institution(s) of higher education or private or independent institution(s) of higher education, as defined in §22.1 of this chapter;

(iv) earned an overall grade point average of at least 2.5 on a four-point scale or the equivalent on all course work previously attempted; and

(v) [has] never previously received a TEXAS Grant.

(b) Renewal [Continuation] Grants. To be eligible to receive a renewal [continuation] grant through the TEXAS Grant Program, a student must:

(1) have previously received an initial year grant through this Program;

(2) show financial need, as defined in §22.1 of this chapter;

(3) be enrolled at least three-quarter time unless granted a hardship waiver of this requirement under §22.231 of this subchapter (relating to Hardship Provisions);

(4) be enrolled in a baccalaureate program at a participating institution;

(5) make satisfactory academic progress towards a baccalaureate degree at the participating institution, as defined in §22.229 of this subchapter (relating to Satisfactory Academic Progress); and

(6) meet applicable standards outlined in §22.3 of this chapter (relating to Student Compliance with Selective Service Registration).

(c) If a student's eligibility was based on the expectation that the student would complete a high school diploma or associate degree in time to meet the requirements for Program eligibility, and the student failed to do so, then, in order to resume eligibility, such a student must:

(1) receive an associate degree;

(2) meet all other qualifications for a TEXAS Grant;

(3) if required to do so by the institution through which the TEXAS Grant was made, repay the amount of the TEXAS Grant that was previously received; and

(4) enroll in a higher-level undergraduate degree program at a participating institution not later than the twelfth month after the month the student received an associate degree.

§22.229. Satisfactory Academic Progress.

(a) To be eligible to receive [qualify for] a renewal [continuation] grant after the academic year in which a person receives an initial year grant, each recipient of the TEXAS Grant shall meet the academic progress requirements of his or her institution.

(b) To be eligible to receive a subsequent grant after he or she receives a renewal [continuation] grant, a recipient shall, unless granted a hardship waiver of this requirement in accordance with §22.231 of this subchapter (relating to Hardship Provisions):

(1) complete at least twenty-four semester credit hours in his or her most recent academic year; and[,]

(2) maintain an overall grade point average of at least 2.5 on a four point scale or its equivalent, for all coursework attempted at an institution of higher education or private or independent institution of higher education, as defined in §22.1 of this chapter (relating to Definitions).

(c) The calculation of a student's GPA is to be completed in accordance with §22.10 of this chapter (relating to Grade Point Average Calculations for Satisfactory Academic Progress).

§22.230. Discontinuation of Eligibility or Non-Eligibility.

(a) A student may not receive a TEXAS Grant while concurrently receiving a Texas Educational Opportunity Grant or Texas Transfer Grant.

(b) A student may not receive a TEXAS Grant after having already being granted a baccalaureate degree.

(c) A student may not receive a TEXAS Grant for a semester in which he or she is enrolled for fewer than six hours.

(d) Unless granted a hardship postponement in accordance with §22.231 of this subchapter (relating to Hardship Provisions), eligibility for a TEXAS Grant for a student whose eligibility for an initial year TEXAS Grant was not based on the receipt of an associate degree ends:

(1) five years from the start of the semester in which the student received his or her first disbursement of an initial year TEXAS Grant, if the student is enrolled in a degree program of four years or less;

(2) six years from the start of the semester in which the student received his or her first disbursement of an initial year TEXAS Grant, if the student is enrolled in a degree program of more than four years.

(e) Unless granted a hardship postponement in accordance with §22.231 of this subchapter, eligibility for a TEXAS Grant for a student whose eligibility was based on receiving an associate degree ends:

(1) three years from the start of the semester in which the student received his or her first disbursement of an initial year TEXAS Grant if the student is enrolled in a degree program of four years or less;

(2) four years from the start of the semester in which the student received his or her first disbursement of an initial year TEXAS Grant if the student is enrolled in a degree program of more than four years.

(f) A student's eligibility ends one year from the date of the semester in which the student received his or her first disbursement of an initial year TEXAS Grant, if the student's eligibility was based on the expectation that the student would complete the initial year grant requirements as outlined in §22.228 of this subchapter (relating to Eligible Students), but the student failed to do so. However, if such a student later receives an associate degree and again qualifies for TEXAS Grants, as described by §22.228(c) of this subchapter, he or she can receive an additional three years of eligibility if enrolled in a degree program of four years or less, or an additional four years if enrolled in a degree program of more than four years.

(g) A student's eligibility for a TEXAS Grant ends once he or she has attempted 150 semester credit hours or the equivalent unless the student is granted a hardship extension in accordance with §22.231(d) of this subchapter.

(h) A person is not eligible to receive an initial year or renewal [continuation] grant if the person has been convicted of a felony or of an offense under Chapter 481, Health and Safety Code (Texas Controlled Substances Act), or under the law of any other jurisdiction involving a controlled substance as defined by Chapter 481, Health and Safety Code, unless the person has met the other applicable eligibility requirements under this subchapter and has:

(1) received a certificate of discharge by the Texas Department of Criminal Justice or a correctional facility or completed a period of probation ordered by a court, and at least two years have elapsed from the date of the receipt or completion; or

(2) been pardoned, had the record of the offense expunged from the person's record, or otherwise been released from the resulting ineligibility to receive a TEXAS Grant.

(i) Other than as described in §22.231 of this subchapter, if a person fails to meet any of the requirements for receiving a renewal [continuation] grant as outlined in §22.228(b) of this subchapter after completion of any semester, the person may not receive a TEXAS Grant until he or she completes a semester while not receiving a TEXAS Grant and meets all the requirements as outlined in §22.228(b) of this subchapter as of the end of that semester.

§22.233. Priority in Grants to Students.

(a) If appropriations for the program are insufficient to allow grants to all eligible students, priority shall be given to those students demonstrating [continuing TEXAS Grant] eligibility for a renewal grant pursuant to §22.228(b) of this subchapter (relating to Eligible Students).

(d) [(b)] In determining who will receive an initial year grant [student eligibility for a TEXAS Grant pursuant to §22.228(a) of this subchapter], priority shall be given to those students who demonstrate the greatest financial need at the time the offer is made.

(e) [(c)] In determining who will receive an initial year grant [student eligibility for a TEXAS Grant pursuant to §22.228(a) of this subchapter], priority shall be given to those students who have a Student Aid Index at or below the Priority Student Aid Index level, as defined in §22.226 of this subchapter (relating to Definitions) [that does not exceed 60 percent of the average statewide amount of tuition and required fees for general academic teaching institutions for the relevant academic year].

(h) [(d)] In determining initial student eligibility for a TEXAS Grant pursuant to §22.228(a) of this subchapter, priority shall be given to those students who:

(1) graduated [graduate] or are on track to graduate from a public or accredited private high school or who present evidence of successful completion of a nontraditional secondary education, as defined in §22.226 of this subchapter (relating to Definitions) in Texas [on or after May 1, 2013,] and complete or are on track to complete the Foundation High School program, or its equivalent as amended in keeping with Texas Education Code, §56.009; and [. The person must also be on track to]

(2) have accomplished, or are on track to accomplish, any two or more of the following at the time a TEXAS Grant was offered:

(A) [(1)] successful completion of the course requirements of the international baccalaureate diploma program, or earning of the equivalent of at least twelve semester credit hours of college credit in high school through courses described in Texas Education Code, §28.009(a)(1), (2), and (3), or if graduating prior to September 1, 2020, graduate under the Recommended or Advanced high school curriculum specified in the Texas Education Code, §28.025 as it existed as of January 1, 2013, and the rules promulgated thereunder by the State Board of Education;

(B) [(2)] satisfaction of the Texas Success Initiative (TSI) college readiness benchmarks prescribed by the Coordinating Board under §4.57 of this title (relating to Texas Success Initiative Assessment College Readiness Standards) [Texas Education Code, §51.334] on any assessment instrument designated by the Coordinating Board under that section or qualification for an exemption as described by §4.54 of this title (relating to Exemption) [Texas Education Code, §51.338(b), (c), or (d)];

(C) [(3)] graduation in the top one-third of the person's high school graduating class or graduation from high school with a grade point average of at least 3.0 on a four-point scale or the equivalent; or

(D) [(4)] completion for high school credit of at least one advanced mathematics course following the successful completion of an Algebra II course, or at least one advanced career and technical or technical applications course;

(j) [(e)] If funds remain after TEXAS Grants are offered to all students meeting the criteria in subsection (h) [(d)] of this section, remaining funds may be offered to persons who are otherwise eligible for TEXAS Grants.

§22.234. Grant Amounts.

(a) The amount of a TEXAS Grant offered through an eligible institution may not be reduced by any gift aid for which the person receiving the grant is eligible, unless the total amount of a person's grant plus any gift aid [other than loans] received equals or exceeds the student's financial need.

(b) The Coordinating Board shall determine and announce the maximum amount of a TEXAS Grant not later than the final day of January prior to the start of each fiscal year. The calculation of the maximum amount per semester will be based on the mandates contained in Texas Education Code, §56.307. However, no student's TEXAS Grant shall be greater than the amount of the student's financial need.

(c) A participating institution may not charge a person receiving a TEXAS Grant through that institution, an amount of tuition and required fees in excess of the amount of the TEXAS Grant received by the person in that semester unless it also provides the student sufficient aid other than loans to meet his or her full tuition and required fees for that semester. Nor may it deny admission to or enrollment in the institution based on a person's eligibility to receive or actual receipt of a TEXAS Grant.

(d) [(e)] Grant calculations and disbursements are to be completed in accordance with the General Provisions outlined in subchapter A of this chapter.

§22.236. Allocation of Funds - General

(f) [(b)] Reductions in Funding.

(1) If annual funding for the program is reduced after the start of a fiscal year, the Coordinating Board may take steps to help distribute the impact of reduced funding across all participating institutions by an across-the-board percentage decrease in all institutions' allocations.

(2) If annual funding is reduced prior to the start of a fiscal year, the Coordinating Board may recalculate the allocations according to the allocation methodology outlined in this rule for the affected fiscal year based on available dollars.

§22.241. Tolling of Eligibility for Initial Year Grant.

(a) A person is eligible for consideration for an Initial Year grant under this subsection if the person was eligible for an initial year grant under §22.228 of this subchapter (relating to Eligible Students) in an academic year for which the Texas Legislature failed to appropriate sufficient funds to make initial year grant to at least 10 percent of the eligible student population, and:

(1) has not received a TEXAS Grant in the past;

(2) has not received a baccalaureate degree; and

(3) meets the eligibility requirements for a renewal [continuation] grant as described in §22.228(b) of this subchapter.

(b) A person who meets the requirements outlined in subsection (a) of this section:

(1) cannot be disqualified for a TEXAS Grant by changes in program requirements since the time he or she was originally eligible or by the amount of time that has passed since he or she was originally eligible;

(2) is to receive highest priority in the selection of recipients if he or she met the priority model requirements of §22.233(h) [§22.233(d)] of this title (relating to Priority in Grants to Students), when originally determined to be eligible;

(3) may continue receiving grants as long as he or she meets the requirements for such renewal [continuation] grants; and

(4) may not receive TEXAS Grants for prior academic years.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 12, 2026.

TRD-202600069

Douglas Brock

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: February 22, 2026

For further information, please call: (512) 427-6365

CHAPTER 24. STUDENT LOAN PROGRAMS

SUBCHAPTER A. GENERAL PROVISIONS

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 24, Subchapter A, §24.1, concerning Definitions. Specifically, this amendment will extend the definition of "manageable debt" to apply to master's degree students.

The Coordinating Board is authorized by Texas Education Code, Chapter 52, Subchapter C, to adopt rules relating to its student loan programs.

Rule 24.1, Definitions, is amended by clarifying the definition of "manageable debt" by defining it as a concept that can be applied to any student, regardless of the type of credential the student is pursuing, as well as by providing additional detail- relating to timing and method- regarding the Coordinating Board's calculation of manageable debt levels. The underlying methodology for developing these levels is unchanged. The existing figure is removed, and manageable debt levels will be published separately from the rule in the future, which allows for use of up-to-date information. To improve rule alignment, the definition for "degree or certificate program" is eliminated and separated into two separate terms, each citing to a definition elsewhere in Coordinating Board rules.

Dr. Charles W. Contero-Puls, Assistant Commissioner for Student Financial Aid Programs, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Dr. Charles W. Contero-Puls, Assistant Commissioner for Student Financial Aid Programs, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the greater alignment between agency operations and strategic goals regarding debt attainment. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposed rule or information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research or analysis, may be submitted to Dr. Charles W. Contero-Puls, Assistant Commissioner for Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711-2788, or via email at SFAPPolicy@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The amendment is proposed under Texas Education Code, Chapter 52, Subchapter C, which provides the Coordinating Board with the authority to adopt rules relating to its student loan programs.

The proposed amendment affects Texas Administrative Code, Title 19, Part 1, Chapter 24, Subchapter A.

§24.1. Definitions.

The following words and terms, when used in chapter 24, shall have the following meanings, unless otherwise defined in a particular subchapter:

(1) Alternative Educator Certification Program--An approved educator preparation program, delivered by entities approved by the State Board for Educator Certification under the provisions of part 7, chapter 228 of this title (relating to Requirements for Educator Preparation Programs), specifically designed as an alternative to a traditional undergraduate certification program, for individuals already holding at least a baccalaureate degree.

(2) Board--The governing body of the agency known as the Texas Higher Education Coordinating Board.

(3) Borrower--An individual who signs a student loan promissory note and thereby assumes liability for the debt and all fees associated with the note and who uses the proceeds of the loan to finance the individual's postsecondary education.

(5) [(4)] Commissioner--The Texas Commissioner of Higher Education.

(6) [(5)] Coordinating Board--The agency known as the Texas Higher Education Coordinating Board, including agency staff.

(7) [(6)] Cosigner--An individual who signs a student loan promissory note and thereby assumes liability for the debt and all fees and expenses associated with the note but who is not a direct beneficiary of the proceeds of the loan.

(8) [(7)] Cost of Attendance--An institution's estimate of the expenses incurred by a typical financial aid recipient in attending a particular institution of higher education. It includes direct educational costs (tuition and fees) as well as indirect costs (room and board, books and supplies, transportation, personal expenses, and other allowable costs for financial aid purposes).

(10) [(9)] Favorable Credit Report Evaluation--A determination made by the Coordinating Board regarding a prospective borrower or cosigner's creditworthiness. For the purposes of this chapter, a borrower or cosigner is considered to have a favorable credit report evaluation if the person:

(A) Has an Experian VantageScore of 650 or higher;

(B) Does not have public records that demonstrate credit concerns such as tax liens or bankruptcy proceedings;

(C) Has a minimum of four credit trade lines, excluding student loans or authorized user accounts; and

(D) Has not defaulted on any federal, state, or private education loans.

(11) [(10)] Fund--The Texas Opportunity Plan Fund as created by the Constitution of the State of Texas, Article III, 50b; the Student Loan Revenue Bond Fund authorized in the Texas Education Code, chapter 56, subchapter H; and/or the Student Loan Auxiliary Fund, authorized in the Texas Education Code, chapter 52, subchapter F.

(12) [(11)] Half-Time--For undergraduates, enrollment or expected enrollment for the equivalent of at least six but fewer than nine semester credit hours per regular semester. For graduate students, enrollment or expected enrollment for the equivalent of 50 percent of the normal full-time course load of the student's program of study as defined by the institution.

(13) [(12)] Institution of Higher Education--As defined in Texas Education Code, §61.003.

(14) [(13)] Insufficient Resources to Finance Education--A requirement for a student to be eligible for certain loan programs. For the purposes of this chapter, a student is considered to have insufficient resources to finance his or her education if the student's cost of attendance is greater than the total amount of financial aid offered to the student. The amount of federal Direct Loans for which the student is eligible must be included in the calculation of the financial aid offered, regardless of whether the student receives the loans.

(15) [(14)] Manageable Debt--A [An undergraduate] student's level of aggregated student loan debt from all sources (including federal, state, and private student loans) such that the student's estimated monthly payment (for all loans) five years after graduation is less than 10 percent of the student's projected income, assembled using wage data from the Texas Workforce Commission based on the student's course of study. Not later than the final day of January of each odd-numbered year, the Coordinating Board shall publish updated manageable debt levels. [See Figure 1 for more information]

[Figure: 19 TAC §24.1(14)]

(16) [(15)] Private or Independent Institution of Higher Education--As defined in Texas Education Code, §61.003.

(17) [(16)] Program Officer--The individual named by each participating institution's chief executive officer to serve as agent for the Coordinating Board. The Program Officer has primary responsibility for all ministerial acts required by the program, including the determination of student eligibility, selection of recipients, maintenance of all records, and preparation and submission of reports reflecting program transactions. Unless otherwise indicated by the institution's chief executive officer, the director of student financial aid shall serve as Program Officer.

(18) [(17)] Repayment Period--The length of time during which a borrower is expected to fully repay the borrower's loan(s). The repayment period is used to determine the number of payments required to repay the loan(s) and therefore the borrower's minimum monthly payment.

(19) [(18)] Student Loan--A loan incurred by a student to assist in covering the student's cost of education.

(20) [(19)] Student Loan Debt--The outstanding balance of principal, interest, and fees associated with an individual's education or student loans.

(21) [(20)] Semester Credit Hour--A unit of measure of instruction, represented in intended learning outcomes and verified by evidence of student achievement, that reasonably approximates one hour of classroom instruction or direct faculty instruction and a minimum of two hours out of class student work for each week over a 15-week period in a semester system or the equivalent amount of work over a different amount of time. An institution is responsible for determining the appropriate number of semester credit hours awarded for its programs in accordance with Federal definitions, requirements of the institution's accreditor, and commonly accepted practices in higher education.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 12, 2026.

TRD-202600070

Douglas Brock

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: February 22, 2026

For further information, please call: (512) 427-6365

SUBCHAPTER D. COLLEGE ACCESS LOAN PROGRAM

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 24, Subchapter D, §24.45, concerning Loan Amount and Interest Rate. Specifically, this amendment will extend aggregate debt limits in the Program to students enrolled in master's degree programs.

The Coordinating Board is authorized by Texas Education Code, Chapter 52, Subchapter C, to adopt rules relating to its student loan programs.

Rule 24.45, Loan Amount and Interest Rate, is amended to reflect the extension of the aggregate debt limit associated with the definition of "manageable debt" in §24.1 to graduate students enrolled in master's degree programs in subsection (c)(1). Conforming edits are made to subsection (c)(2) to specify that doctoral and professional students are subject to a different aggregate debt limit.

Dr. Charles W. Contero-Puls, Assistant Commissioner for Student Financial Aid Programs, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Dr. Charles W. Contero-Puls, Assistant Commissioner for Student Financial Aid Programs, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the greater alignment between agency operations and strategic goals regarding debt attainment. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposed rule or information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research or analysis, may be submitted to Dr. Charles W. Contero-Puls, Assistant Commissioner for Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711-2788, or via email at SFAPPolicy@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The amendment is proposed under Texas Education Code, Chapter 52, Subchapter C, which provides the Coordinating Board with the authority to adopt rules relating to its student loan programs.

The proposed amendment affects Texas Administrative Code, Title 19, Part 1, Chapter 24, Subchapter D.

§24.45. Loan Amount and Interest Rate.

(a) Minimum Loan Amount. No College Access Loan may be authorized for less than $100.

(b) Annual Loan Limit. In no case shall the annual loan amount exceed the difference between the cost of attendance and the financial resources available to the applicant, including the applicant's scholarships, gifts, grants, and other financial aid. The student's maximum eligibility for Federal Direct Loans, except for Federal PLUS loans, must be considered by the institution as other financial aid, whether or not the student actually receives such assistance.

(c) Aggregate Loan Limit.

(1) For [undergraduate] students enrolled in undergraduate or master's degree programs, the maximum aggregate loan amount for any eligible student shall not exceed the student's manageable debt level, as defined in §24.1 of this chapter (relating to Definitions).

(2) For students enrolled in doctoral or [graduate and] professional degree programs [students], the maximum aggregate loan amount for an eligible student is the sum of the student's annual limits.

(d) Interest Rate. The interest rate charged for new loans shall be set from time to time by the Commissioner, shall be simple interest, and shall begin to accrue on the outstanding principal from the date of disbursement, including during periods of forbearance.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 12, 2026.

TRD-202600071

Douglas Brock

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: February 22, 2026

For further information, please call: (512) 427-6365

PART 2. TEXAS EDUCATION AGENCY

CHAPTER 89. ADAPTATIONS FOR SPECIAL POPULATIONS

SUBCHAPTER AA. COMMISSIONER'S RULES CONCERNING SPECIAL EDUCATION SERVICES

CHAPTER 153. SCHOOL DISTRICT PERSONNEL

SUBCHAPTER FF. COMMISSIONER'S RULES CONCERNING PREPARING AND RETAINING EDUCATORS THROUGH PARTNERSHIP PROGRAM ALLOTMENT

The Texas Education Agency (TEA) proposes new §§153.1301, 153.1302, 153.1303 153.1304, 153.1305, and 153.1306, concerning school district personnel. The proposed new subchapter would establish rules concerning the Preparing and Retaining Educators Through Partnership (PREP) Program Allotment, which was enacted by House Bill (HB) 2, 89th Texas Legislature, Regular Session, 2025.

BACKGROUND INFORMATION AND JUSTIFICATION: HB 2 established the PREP Program Allotment and requirements needed for districts and open-enrollment charter schools to access funds. New Texas Education Code (TEC), §21.911, requires the commissioner of education to establish rules necessary to implement TEC, Chapter 21, Subchapter R.

Definitions

Proposed new §153.1301 would establish definitions for commonly used terms in new Subchapter FF.

General Provisions

Proposed new §153.1302 would establish general provisions for the PREP Program Allotment. The proposed new rule would streamline and clarify general provisions that apply to all five of the PREP programs funded by the allotment. Each subsequent section under Subchapter FF would detail additional provisions unique to each of the PREP programs.

New §153.1302(a) would establish eligibility requirements for accessing PREP Program Allotment funds, application procedures, and approval processes. It would also establish a process through which school systems could identify interest in the funding opportunity, as the PREP program is an optional entitlement.

New §153.1302(b) would include provisions for school system funding and spending. PREP Program Allotment funding is based on a statutory formula, and the subsection would clarify how the TEA would calculate allotments.

New §153.1302(c) would indicate information school systems must submit to TEA in order for TEA to calculate annual allotments, along with information that would be necessary for the commissioner to engage in periodic reviews of programs under the requirements of TEC, §21.909.

New §153.1302(d) would clarify the periodic review process that the commissioner is required to implement under TEC, §21.909. This subsection would also include actions TEA may take as a result of the reviews.

New §153.1302(e) would specify how renewals or withdrawals from the program would occur to allow school systems to plan accordingly.

PREP Preservice Residency Preservice Program

HB 2, 89th Texas Legislature, 2025, created an optional PREP Residency Preservice Program, detailed in TEC, §21.904 and §48.157, for those districts choosing to implement a paid teacher residency program. Section 153.1303 would further clarify requirements in statute for the PREP Residency Preservice Program.

Proposed new §153.1303(a) would specify general provisions related to the new rule.

Proposed new §153.1303(b) would specify eligibility for school districts, charter schools, and educator preparation programs (EPPs).

Proposed new §153.1303(c) would specify program standards, including partnership agreements, clinical teaching experience, teacher resident engagement, coursework completion, and host and mentor teacher pairing.

Proposed new §153.1303(d) would establish performance goals.

Proposed new §153.1303(e) would specify timelines for periodic reviews of performance goals.

Proposed new §153.1303(f) would outline funding requirements.

Proposed new §153.1303(g) would outline program spending requirements.

PREP Grow Your Own Program

HB 2, 89th Texas Legislature, 2025, created an optional PREP Grow Your Own Program, detailed in TEC, §21.906 and §48.157, for those school districts or open-enrollment charter schools choosing to implement a Grow Your Own Program. Proposed new §153.1304 would pertain to the PREP Grow Your Own Program.

Proposed new §153.1304(a) would specify general provisions related to the new rule.

Proposed new §153.1304(b) would specify school district and charter school eligibility for participation.

Proposed new §153.1304(c) would specify program standards, including high school program requirements, requirements for supporting school district or eligible charter school employees, guidance and transition supports, scheduled release time for employees, employee job assignment, and completion of bachelor's degree and certification requirements.

Proposed new §153.1304(d) would establish performance goals.

Proposed new §153.1304(e) would specify timelines for periodic reviews of performance goals.

Proposed new §153.1304(f) would outline funding and spending requirements.

PREP Mentorship Program

HB 2, 89th Texas Legislature, Regular Session, 2025, created an optional PREP Mentorship Program, detailed in TEC, §21.907 and §48.157, for those school districts or open-enrollment charter schools choosing to implement a mentorship program in accordance with TEC, §21.458. Proposed new §153.1305 would clarify aspects of law related to mentor training programs for new teachers.

Proposed new §153.1305(a) would specify general provisions related to the new rule.

Proposed new §153.1305(b) would specify program standards, including mentor teacher qualifications, number of beginning teachers a mentor teacher may be assigned, staff who must complete mentor training, and the timelines related to mentor training. Subsection (b) would also clarify the appropriate times of day and frequency with which meetings between mentors and beginning teachers should occur and the topics that mentor teachers and beginning teachers must cover.

Proposed new §153.1305(c) would establish program performance goals.

Proposed new §153.1305(d) would outline funding and spending requirements.

EPP Training Content

Proposed new §153.1306 establishes EPP training content requirements related to the implementation of PREP Preservice Programs.

New §153.1306(a) would establish general provisions for EPP training content development and related training for faculty and staff responsible for preparing teacher candidates in preparation route established by TEC, §21.04422.

New §153.1306(b) would establish TEA processes for the development of content materials prior to use in teacher candidate preparation.

New §153.1306(c) would establish the requirement for TEA to develop and deliver training to EPP faculty and staff to implement and redeliver the required training content materials.

FISCAL IMPACT: Jessica McLoughlin, associate commissioner for educator preparation, certification, and enforcement, has determined that for the first five-year period the proposal is in effect, there are no additional costs to state or local government, including school districts and open-enrollment charter schools, required to comply with the proposal.

LOCAL EMPLOYMENT IMPACT: The proposal has no effect on local economy; therefore, no local employment impact statement is required under Texas Government Code, §2001.022.

SMALL BUSINESS, MICROBUSINESS, AND RURAL COMMUNITY IMPACT: The proposal has no direct adverse economic impact for small businesses, microbusinesses, or rural communities; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required.

COST INCREASE TO REGULATED PERSONS: The proposal does not impose a cost on regulated persons, another state agency, a special district, or a local government and, therefore, is not subject to Texas Government Code, §2001.0045.

TAKINGS IMPACT ASSESSMENT: The proposal does not impose a burden on private real property and, therefore, does not constitute a taking under Texas Government Code, §2007.043.

GOVERNMENT GROWTH IMPACT: TEA staff prepared a Government Growth Impact Statement assessment for this proposed rulemaking. During the first five years the proposed rulemaking would be in effect, it would create new regulations by establishing the PREP program and the rules that guide the program's implementation for school districts and open-enrollment charter schools.

The proposed rulemaking would not create or eliminate a government program; would not require the creation of new employee positions or elimination of existing employee positions; would not require an increase or decrease in future legislative appropriations to the agency; would not require an increase or decrease in fees paid to the agency; would not expand, limit, nor repeal an existing regulation; would not increase or decrease the number of individuals subject to its applicability; and would not positively or adversely affect the state's economy.

PUBLIC BENEFIT AND COST TO PERSONS: Ms. McLoughlin has determined that for each year of the first five years the proposal is in effect, the public benefit anticipated as a result of enforcing the proposal would be to ensure rule language is based on current law and provide school districts and open-enrollment charter schools with clarification on the requirements and process needed to participate in the optional PREP Program Allotment. There is no anticipated economic cost to persons who are required to comply with the proposal.

DATA AND REPORTING IMPACT: The proposal would create a new data collection for school districts and charter schools that choose to participate in the program. The reporting requirements, authorized under TEC, §§21.902, 21.904, 21.906, and 21.907, relate to implementation of and participation in the program.

PRINCIPAL AND CLASSROOM TEACHER PAPERWORK REQUIREMENTS: TEA has determined that the proposed new rules would require a written report or other paperwork to be completed by a principal or classroom teacher, such as participation in annual surveys. However, proposal would impose the least burdensome requirement possible to achieve the objective of the rules.

PUBLIC COMMENTS: TEA requests public comments on the proposal, including, per Texas Government Code, §2001.024(a)(8), information related to the cost, benefit, or effect of the proposed rule and any applicable data, research, or analysis, from any person required to comply with the proposed rule or any other interested person. The public comment period on the proposal begins January 23, 2026, and ends February 23, 2026. A request for a public hearing on the proposal submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 14 calendar days after notice of the proposal has been published in the Texas Register on January 23, 2026. A form for submitting public comments is available on the TEA website at https://tea.texas.gov/About_TEA/Laws_and_Rules/Commissioner_Rules_(TAC)/Proposed_Commissioner_of_Education_Rules/.

STATUTORY AUTHORITY. The new sections are proposed under Texas Education Code (TEC), §21.901, as added by House Bill (HB) 2, 89th Texas Legislature, Regular Session, 2025, which establishes definitions for Preparing and Retaining Educators Through Partnership (PREP) programs; TEC, §21.902, as added by HB 2, 89th Texas Legislature, Regular Session, 2025, which establishes provisions for three PREP Preservice Programs: PREP Preservice Traditional Program, PREP Preservice Residency Program, and PREP Preservice Alternative Program; TEC, §21.903, as added by HB 2, 89th Texas Legislature, Regular Session, 2025, which establishes requirements for the PREP Preservice Traditional Program; TEC, §21.904, as added by HB 2, 89th Texas Legislature, Regular Session, 2025, which establishes a PREP Preservice Residency Program for participating school districts or open-enrollment charter schools to implement teacher residency preservice programs that provide teacher candidates with extensive year-long clinical practice under the supervision of a host teacher. It also outlines permissible use of allotment funds, which include candidate pay, mentor stipends, and training and administrative costs; TEC, §21.905, as added by HB 2, 89th Texas Legislature, Regular Session, 2025, which establishes requirements for the PREP Preservice Alternative Program; TEC, §21.906, as added by HB 2, 89th Texas Legislature, Regular Session, 2025, which establishes a PREP Grow Your Own Program for participating school districts or open-enrollment charter schools to implement Grow Your Own Programs supporting district or open-enrollment charter school employees who do not hold a teaching certificate in completing a bachelor's degree and enrolling in a preparation program for teacher certification and high school students in completing education and training career and technical education (CTE) courses to help prepare students for the teaching profession. It also outlines permissible use of allotment funds, which include program implementation and paying tuition and fees for participating students and employees; TEC, §21.907, as added by HB 2, 89th Texas Legislature, Regular Session, 2025, which establishes a PREP Mentorship Program for participating school districts or open-enrollment charter schools to implement a mentoring program that meets the requirements of TEC, §21.458, for classroom teachers who have less than two years of teaching experience. It also outlines permissible use of mentor program allotment funds, which include mentor teacher stipends, scheduled release time for mentoring activities, and mentor support through providers of mentor training; TEC, §21.908, as added by HB 2, 89th Texas Legislature, Regular Session, 2025, which establishes requirements for educator preparation program supports; TEC, §21.909, as added by HB 2, 89th Texas Legislature, Regular Session, 2025, which establishes the requirement for the commissioner to establish performance standards, goals, and periodic review of the PREP program; TEC, §21.910, as added by HB 2, 89th Texas Legislature, Regular Session, 2025, which includes provisions for authority to accept certain money; TEC, §21.911, as added by HB 2, 89th Texas Legislature, Regular Session, 2025, requires the commissioner to adopt rules as necessary to implement TEC, Chapter 21, Subchapter R; TEC, §48.157, as added by HB 2, 89th Texas Legislature, Regular Session, 2025, which establishes a PREP Program Allotment and a formula to determine the amount to which eligible school districts and open-enrollment charter schools are entitled for each PREP program; TEC, §21.067, as added by HB 2, 89th Texas Legislature, Regular Session, 2025, which requires the commissioner to develop and make available content training materials and related EPP faculty training required for preparing teacher candidates enrolled in any of the PREP Preservice Programs; and TEC, §21.044(i), as added by HB 2, 89th Texas Legislature, Regular Session, 2025, which establishes the content training requirements for teacher candidates enrolled in any of the PREP Preservice Programs.

CROSS REFERENCE TO STATUTE. The new sections implement Texas Education Code, §§21.901-21.911 and 48.157, as added by House Bill 2, 89th Texas Legislature, Regular Session, 2025.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 12, 2026.

TRD-202600065

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Earliest possible date of adoption: February 22, 2026

For further information, please call: (512) 475-1497