1. (a) Allocations.

   1. (1) The share of funds for each eligible institution will equal:

      1. (A) the number of Initial Year TEXAS Grant recipients at the institution in the Prior-Prior Year multiplied by the percentage of Initial Year TEXAS Grant recipients in the year prior to the Prior-Prior Year who received a Continuation Grant in the Prior-Prior Year; plus the number of Continuation Grant TEXAS Grant recipients at the institution in the Prior-Prior Year multiplied by the percentage of Continuation Grant TEXAS Grant recipients in the year prior to the Prior-Prior Year who received a Continuation Grant in the Prior-Prior Year, multiplied by the institution's average TEXAS Grant award in the Prior-Prior Year, up to the amount of the Target Grant Amount for the fiscal year for which allocations are occurring; plus

      2. (B) the institution's proportions of the remaining appropriation is based on the sum of the number of students who were reported as a first time enrolling freshman; or an undergraduate transfer student who completed an associate degree within the prior twelve months to enrolling; or an undergraduate transfer student who received an Initial TEOG grant for the Fall 2014 semester or later, has completed at least twenty-four semester credit hours, and has earned an overall GPA of at least 2.5 on a four-point scale on all course work previously attempted, and:

         1. (i) were enrolled as undergraduate students and had not yet received a Bachelor's degree;
         2. (ii) were identified as residents of Texas;
         3. (iii) were enrolled at least three-quarter-time; and
         4. (iv) had a 9-month Student Aid Index, calculated using federal methodology, that was less than or equal to the cap established for TEXAS Grant in the Prior-Prior Year.
   2. (2) The TEXAS Grant allocation spreadsheet will be provided to the institutions for review and the institutions will be given ten working days, beginning the day of the notice's distribution and excluding State holidays, to confirm that the spreadsheet accurately reflects the data they submitted or to advise the Coordinating Board of any inaccuracies.

2. (b) Reductions in Funding.

   1. (1) If annual funding for the program is reduced after the start of a fiscal year, the Coordinating Board may take steps to help distribute the impact of reduced funding across all participating institutions by an across-the-board percentage decrease in all institutions' allocations.
   2. (2) If annual funding is reduced prior to the start of a fiscal year, the Coordinating Board may recalculate the allocations according to the allocation methodology outlined in this rule for the affected fiscal year based on available dollars.

Source Note:The provisions of this §22.236 adopted to be effective November 28, 2005, 30 TexReg 7870; amended to be effective May 21, 2008, 33 TexReg 3952; amended to be effective February 26, 2013, 38 TexReg 1161; amended to be effective February 26, 2014, 39 TexReg 1143; amended to be effective November 26, 2014, 39 TexReg 9204; amended to be effective June 6, 2016, 41 TexReg 4006; amended to be effective August 27, 2018, 43 TexReg 5510; amended to be effective May 15, 2025, 50 TexReg 2790.