Texas Senate bill by Sen. West addresses financial aid displacement at public colleges

Passed bill authored by State Sen. Royce West seeks to address financial aid displacement at public higher education institutions by requiring advisory notices and annual reporting to the coordinating board, according to the Texas Legislature website.

In the Senate, 10 Democrats and 20 Republicans voted in favor of the bill, with no opposition.

Meanwhile, in the House, 56 Democrats and 25 Republicans voted in favor, while 57 Republicans voted against it.

Royce West introduced the bill in the Texas Senate on Friday, March 14, during the 89th regular legislative session.

West graduated from the University of Texas at Arlington with a BA and again from University of Houston with an MA.

West, a Democrat, was elected to the Texas State Senate in 1993 to represent the state’s 23rd Senate district, replacing previous state senator Eddie Bernice Johnson.

According to the Texas Legislature, the bill’s official text was summarized as follows: ‘Relating to the displacement of student financial aid at a public institution of higher education’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill addresses the issue of financial aid displacement at public institutions of higher education in Texas, where a student’s financial aid is reduced due to the receipt of a private scholarship or other reasons. The Texas Higher Education Coordinating Board is tasked with developing a financial aid displacement advisory, which institutions must send to newly admitted students within seven days. Additionally, institutions must provide students with a financial aid reduction notice detailing any changes, including the reasons, within 30 days of such changes. Institutions are required to report annually to the coordinating board on revisions or reductions in gift aid, disaggregated by race and sex, and the board must submit an annual report to the legislature. This act applies starting with the 2025-26 academic year and takes effect immediately if it gains two-thirds legislative approval; otherwise, it takes effect on Sept. 1, 2025.

The bill was co-authored by Sen. José Menéndez (Democrat – District 26).

The bill received its final legislative approval on Wednesday, May 28, and was signed into law by Gov. Greg Abbott on Friday, June 20.

Bills in Texas go through a multi-step legislative process, including committee review, debates, and votes in both chambers before reaching a final decision. Each session, there are typically thousands of bills introduced, but only a portion successfully navigate the process to become law.

You can read more about the bills and other measures here.