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SB2995

Regular Session

Relating to the displacement of student financial aid at a public institution of higher education.

Moderate
Low Cost
Effective:2025-09-01
SB2995
Moderate
Relating to the displacement of student financial aid at a public institution of higher education.
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
THECB
Primary Author: Sen. Royce West
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025 (or immediately upon Governor's signature if passed by 2/3 vote).
  • Compliance Deadline: Immediate/Retroactive. The law applies to the 2025-2026 academic year. Since application cycles for the 2025-2026 year typically open as early as July or August 2025, your current application portals may already be non-compliant if the law receives immediate effect.
  • Agency Rulemaking: The Texas Higher Education Coordinating Board (THECB) must adopt rules, establish the standardized "Advisory" text, and publish a list of common reasons for displacement. You cannot finalize your forms until THECB releases this text.

Immediate Action Plan

  • IT Audit: Immediately test your admission portal's ability to render a text box with a 1-point border and 14-point font.
  • Draft Internal Content: Have Legal and Financial Aid draft the "Maximization" and "Protection" strategy text immediately; do not wait for THECB rules for this specific section.
  • Monitor THECB: Assign a compliance officer to check the Texas Register daily for the release of the official "Advisory" text and the "List of Common Reasons."
  • Vendor Notice: Put your application platform vendors on notice today that these changes are statutory requirements for Texas operations.

Operational Changes Required

Contracts

  • CRM & Application Vendors: Review contracts with third-party application platforms (e.g., Slate, Common App, ApplyTexas). You must verify their ability to insert a text box with a 1-point weight border and 14-point font within the application flow. If the vendor cannot accommodate this specific formatting, you are legally exposed.

Hiring/Training

  • Designated Point of Contact: The law requires the application to list a specific office or employee to assist students with displacement questions. Financial Aid staff must be trained on "maximization strategies" to field these inquiries competently.

Reporting & Record-Keeping

  • Admission Application Overhaul: The application form (digital or paper) must now include:
  • 1. The THECB-mandated "Financial Aid Displacement Advisory" (in 14pt font/border).
  • 2. Plain language instructions on how to apply for private aid.
  • 3. Deadlines for reporting private scholarships.
  • 4. Strategies for maximizing gift aid and preventing displacement.

Fees & Costs

  • IT Development: Budget for immediate front-end development hours to modify application portals.
  • No State Fees: There are no new filing fees payable to the state.

Strategic Ambiguities & Considerations

  • The "Gap" Period: The law applies to the 2025-2026 academic year, but THECB may not publish the required text until late summer 2025. Institutions risk having open application portals without the required text.
  • "Plain Language" Standard: The statute requires "plain language" recommendations for maximizing aid but does not define the standard. Institutions should draft this internally now, aiming for an 8th-grade reading level, rather than waiting for agency guidance.

Need Help Understanding Implementation?

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 14, 2025
Passed Senate
May 12, 2025
Passed House
May 28, 2025
Signed
Jun 20, 2025
TopicsEducationEducation--higherEducation--higher--student Financial AidScholarshipsHigher Education Coordinating Board, Texas
03

Senate Authors

Sen. Royce WestDemocrat · Primary Author
Coauthors (1)

House Sponsor

Rep. Aicha DavisDemocrat · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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Quick Reference

Frequently Asked Questions

Common questions about SB2995

Q

What does Texas SB2995 do?

SB2995 mandates that all Texas public institutions of higher education explicitly disclose "financial aid displacement" practices directly on admission application forms. This requires immediate IT and operational updates to application portals to accommodate strict formatting requirements (14-point font, specific borders) and new advisory language prior to the 2025-2026 application cycle. Implementation Timeline Effective Date: September 1, 2025 (or immediately upon Governor's signature if passed by 2/3 vote).

Q

Who authored SB2995?

SB2995 was authored by Texas Senator Royce West during the Regular Session.

Q

When was SB2995 signed into law?

SB2995 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB2995?

SB2995 is enforced by Texas Higher Education Coordinating Board (THECB).

Q

How urgent is compliance with SB2995?

The compliance urgency for SB2995 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of SB2995?

The cost impact of SB2995 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB2995 address?

SB2995 addresses topics including education, education--higher, education--higher--student financial aid, scholarships and higher education coordinating board, texas.

Legislative data provided by LegiScanLast updated: November 25, 2025

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