HB 371 amends the Texas Education Code to modify the eligibility of students for public school admission and funding. The bill restricts entitlement to the benefits of the available school fund and Foundation School Program to U.S. citizens, nationals, or aliens lawfully present in the United States, with specific exceptions. It introduces a new category of students—those not lawfully present—who may be admitted if the federal government agrees to cover the costs of their education. The Texas Education Agency is tasked with negotiating agreements with the federal government for reimbursement and distributing the funds to school districts accordingly. This bill is set to take effect beginning with the 2026–2027 school year.