Relating to diversity, equity, and inclusion initiatives at public institutions of higher education.

HB 118 requires Texas public universities to report on their compliance with diversity, equity, and inclusion (DEI) spending policies before using state funds. Institutions must submit annual reports to the legislature and Texas Higher Education Coordinating Board, testify about compliance at legislative hearings, and undergo state audits every four years. The bill explicitly permits universities to highlight support for first-generation, low-income, and underserved students in grant applications or accreditation reports without violating the law. It also clarifies that academic instruction, research, student organizations, and admissions practices are exempt from the reporting requirements. This bill directly affects all public universities in Texas that receive state appropriations.