http://www.collegeforalltexans.com/apps/CollegeMoney/ is the current net price calculator for Texas public colleges and universities.
For a Texas family of 3 with 1 in college and parent income of $65,000, that net price calculator shows wide ranges of grant amounts (student living on campus):
UT Austin: grants $0-$26500/year, median $10492 (tuition $10314).
UT Dallas: grants $0-$19910/year, median $3800 (tuition $13442).
UT San Antonio: grants $2747-$6010/year, median $4379 (tuition $9724).
So it looks like current financial aid at UT Austin is much better than at UT Dallas and UT San Antonio, and about half of in-state UT Austin students from $65,000 income families will have their tuition covered. So the new policy should be an improvement in financial aid for some UT Austin students and probably most UT Dallas and UT San Antonio students. (Readers can try the other UT campuses if they want.) However, even improved, it may not necessarily make them affordable for those who live outside of commuting range (although if the $65,000 income parents contribute around $5,000 to $6,000, and the student takes the federal direct loan and works as much as can be reasonably be expected, that may bring them barely into affordability for those outside of commuting range).
The net prices given (note the huge ranges):
UT Austin: $718-27218/year
UT Dallas: $10054-29964/year
UT San Antonio: $18734-21997/year