“This Is Not Just a Policy Change — It’s a Door Closing”: Texas Bill Threatens Student Futures

A new bill moving through the Texas Legislature is sparking concern from civil rights advocates and higher education leaders. Senate Bill 1798, would eliminate long-standing provisions that allow certain undocumented students to qualify for in-state tuition and state financial aid, according to a press release by the Texas Civil Rights Project.

SB 1798, authored by Senator Mayes Middleton, proposes significant amendments to the Texas Education Code, specifically targeting tuition, financial aid, and residency status policies for public higher education institutions. The bill’s primary focus is to limit access to in-state tuition and state-funded financial aid for individuals not lawfully present in the United States.

“This is not just a policy change — it’s a door closing,” said Danny Woodward, Policy Attorney at the Texas Civil Rights Project (TCRP), which has publicly condemned the bill. “For many, this would mean the end of their college plans.”

Key Points of the SB 1798

• New Compliance Requirements:
  
  • Public colleges and universities in Texas must not provide financial aid—including scholarships and grants—to individuals who are unauthorized under federal immigration law.
    
  • Institutions must report compliance annually to the Texas Legislature and the Texas Higher Education Coordinating Board.
    
  • The State Auditor is tasked with conducting periodic audits to ensure adherence.
    
• Changes to Residency Determination:
  
  • The bill removes prior residency qualifications, such as graduating from a Texas high school, if the individual is not lawfully present.
    
  • It explicitly states that individuals unauthorized under federal law are not eligible for resident tuition classification.
    
  • Colleges can reclassify students if new information affects their residency status.
    
  • Students found to be misclassified may be held financially liable for the difference in tuition.
    
• Implementation Timeline:
  
  • Residency and tuition changes take effect for the 2025–2026 academic year.
    
  • Financial aid provisions apply to state funding starting in Fiscal Year 2026.

Summary of Statutes affected by SB 1798: 

1. Who can pay in-state tuition at Texas colleges (Sec. 54.052):
You can pay the cheaper “in-state” price if:

• You (or your parents) have lived in Texas for at least one full year before school starts.
  
• OR you went to high school in Texas for 3 years and lived in Texas the year before starting college.

2. What you need to prove it (Sec. 54.053):
You have to give the college:

• Dates showing how long you’ve lived in Texas.
  
• A statement saying you lived here to make Texas your home.
  
• If you’re not a U.S. citizen or permanent resident, you also need to promise you’ll apply to become one when you can.

3. Changing your status (Sec. 54.055):
If new info comes up, the college can change your status from in-state to out-of-state, or the other way around — but only before the deadline for that semester.

4. Mistakes in your status (Sec. 54.056):

• If a college wrongly says you’re a Texas resident, they’ll make you pay the correct (higher) price starting the next semester.
  
• If they wrongly said you were out-of-state, they’ll fix it and give back the extra money you paid.

5. If you didn’t tell the truth (Sec. 54.057):
If you didn’t give correct info or didn’t tell the college something important, and they let you pay less by mistake, you’ll have to pay back the difference. Until you do, they won’t give you your diploma or transcripts.

6. Cheaper prices near state borders (Sec. 54.0601):
Some colleges close to other states can ask for permission to offer lower prices to students from out of state if it helps the school and doesn’t hurt others. 

If passed, the bill would mark a significant reversal of a policy that has been in place for more than two decades — a policy originally passed with bipartisan support and signed into law by Republican Governor Rick Perry in 2001.

SB 1798 proposes to end access to resident tuition rates and state-funded grants and scholarships for students who are not “lawfully present” in the U.S., regardless of whether they graduated from a Texas high school or have spent most of their lives in the state.

Broader Implications

Critics of the bill say the proposed change would disproportionately impact students who were brought to Texas as children, including DACA recipients, who could now lose access to higher education opportunities they have worked years to earn.

The bill goes beyond changing student eligibility. It includes compliance requirements that would penalize public colleges and universities found to be offering aid to undocumented students. Institutions that fail to comply could face cuts to future increases in state funding.

Economic and Moral Concerns

Opponents of the bill argue that removing access to education for undocumented students is not just a moral issue — it’s also an economic one. The students affected are often pursuing degrees in fields with labor shortages, including healthcare, education, and engineering.

“These students are not outsiders,” said Woodward. “They are future nurses, teachers, and community leaders — the very people Texas needs to strengthen its economy and meet workforce demands.”If approved, SB 1798 would take effect starting in Fall 2025, impacting a new class of students and setting a precedent for future higher education policy in Texas. The Texas Civil Rights Project and other advocates are calling on legislators to reject the bill and preserve what they see as a fair and forward-thinking tradition in Texas education.

The bill was currently left pending in the Senate Education K-16 Committee. This is a developing story