HB 3574 proposes to modify the limit on the number of nonresident scholarship students who may pay resident tuition and fees at certain public institutions of higher education. The bill sets the limit at 5% of the total student enrollment from the previous year, except for institutions located in regions with below-average population growth and sufficient capacity, where the limit is increased to 20%. The Texas Higher Education Coordinating Board is required to adopt rules to implement these provisions. This change applies beginning with the 2025-2026 academic year​.