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HB 232 amends the Texas Education Code to revise residency criteria for in-state tuition at Texas public institutions of higher education. This bill removes the provision allowing individuals to qualify for in-state tuition if they graduated from a Texas high school after residing in Texas for at least three years, unless they meet other residency requirements. Additionally, HB 232 specifies that individuals who are not lawfully present in the U.S. may not be classified as Texas residents for tuition purposes. Institutions are permitted to reclassify students as nonresidents if they no longer meet the updated residency criteria. This act takes effect on September 1, 2025.