1. (a) Authority. Authority for this section is provided in the Texas Education Code, §54.2031.
2. (b) Definitions. In addition to the words and terms defined in §13.460 of this subchapter (relating to Definitions), in this section, the term "dependent child" means a person who is a stepchild, biological child, or adopted child of a person and is claimed as a dependent for federal income tax purposes in the previous tax year or will be claimed as a dependent for federal income tax purposes for the current year.
3. (c) Participating Institutions. An institution of higher education, as defined by §13.1 of this chapter (relating to Definitions) shall provide an exemption from the payment of tuition to all eligible students enrolled at the institution if sufficient appropriated funds are available to cover the full costs to the institution for the required exemptions. An institution is required to grant an exemption under this section only to the extent appropriated funds are available for that purpose.

4. (d) Eligible Students. To be eligible for an exemption under this program, a student must:

   1. (1) submit satisfactory evidence to his or her institution that the student is the dependent child of a member of the Armed Forces of the United States who is:

      1. (A) a Resident of Texas, as defined in §22.1 of this title (relating to Definitions) or entitled to pay resident tuition; and
      2. (B) deployed on active duty for the purpose of engaging in a combative military operation outside the United States;
   2. (2) not be in default on a loan made or guaranteed for educational purposes by the State of Texas;
   3. (3) meet applicable standards outlined in §22.3 of this title (relating to Student Compliance with Selective Service Registration); and
   4. (4) meet the satisfactory academic progress requirements described by §13.463 of this subchapter (relating to Satisfactory Academic Progress) unless granted a hardship waiver by the institution in accordance with §13.464 of this subchapter (relating to Hardship Provisions).
5. (e) Discontinuation of Eligibility. A student may not receive an exemption from the payment of tuition under this section for more than 150 semester credit hours (or equivalent) under any circumstances.
6. (f) Impact on Admissions. An institution of higher education may not consider the fact that a person is eligible for an exemption under this section in determining whether to admit the person to any degree or certificate program.

7. (g) Reimbursement of Foregone Tuition.

   1. (1) If notified by the Coordinating Board that appropriated funds are available, a participating institution may apply to the Coordinating Board for reimbursement for the tuition revenues foregone through exemptions offered under this section.
   2. (2) The Coordinating Board will provide reimbursements to institutions that apply, to the extent to which funds are appropriated for this purpose by the Legislature.
   3. (3) If the Coordinating Board determines at any time during a year that the appropriated funds are insufficient to cover the anticipated cost of foregone tuition for exemptions offered during that year, the Coordinating Board may defer the processing of applications for reimbursement received after that date and provide institutions a prorated share of the available funds as of the end of the fiscal year.

Source Note:The provisions of this §13.473 adopted to be effective November 13, 2025, 50 TexReg 7253.