1. (a) If appropriations for the program are insufficient to allow grants to all eligible students, priority shall be given to those students demonstrating eligibility for a renewal grant pursuant to §22.228(b) of this subchapter (relating to Eligible Students).
2. (b) In determining who will receive an initial year grant, an institution shall give priority to those students who graduated in the top 25 percent of their high school graduating class in one of the two prior academic years. An institution may establish a procedure by which it determines whether a student whose high school does not rank students is described by this subsection.
3. (c) In determining who will receive an initial year grant, an institution shall give priority to those students who establish eligibility for an initial grant under §22.228(a)(6)(D) of this subchapter.
4. (d) In determining who will receive an initial year grant, priority shall be given to those students who demonstrate the greatest financial need at the time the offer is made.
5. (e) In determining who will receive an initial year grant, 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).

6. (f) Each institution shall ensure that an eligible student receives an initial grant under this subchapter if the student:

   1. (1) is described by both subsections (b) and (e) of this section; and
   2. (2) applies for financial aid, as described by §22.228(a)(4) of this subchapter, by June 1 prior to the applicable fiscal year.
7. (g) Each institution shall ensure that an eligible student who is described by both subsections (c) and (e) of this section receives an initial grant under this subchapter. An institution may use any funds allocated under this subchapter to meet this requirement.

8. (h) 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. (1) graduated 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 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

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

      1. (A) 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;
      2. (B) 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) 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);
      3. (C) 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
      4. (D) 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;
9. (i) For the purposes of subsection (h)(1) of this section, an institution may not require a student to present additional evidence or documentation of successful completion of a nontraditional secondary education beyond what is required for the student to demonstrate qualification for admission to the institution. A student who has been admitted to the institution based on successful completion of a nontraditional secondary education is considered to have presented evidence of completion.
10. (j) If funds remain after TEXAS Grants are offered to all students meeting the criteria in subsection (h) of this section, remaining funds may be offered to persons who are otherwise eligible for TEXAS Grants.

Source Note:The provisions of this §22.233 adopted to be effective November 28, 2005, 30 TexReg 7870; amended to be effective November 22, 2020, 45 TexReg 8340; amended to be effective May 15, 2025, 50 TexReg 2790; amended to be effective May 13, 2026, 51 TexReg 3108.