Big Takeaways from the 2025 Texas Legislative Session and HHSC
If you’re a Texas school district trying to keep up with SHARS (School Health and Related Services), you’re not alone. After a whirlwind legislative session and new policy proposals from the Texas Health and Human Services Commission (HHSC), many districts are asking: What do we need to know, and what do we need to do right now?
We’ve got you covered. Here are three key developments and what they could mean for your school Medicaid program.
1. HHSC Takes the Lead on SHARS
In a big shift, Senate Bill 1952 designates HHSC as the sole administrator of the SHARS program. While TEA previously provided support and oversight, future guidance and administration will now come directly from HHSC through a formal agreement (an MOU) between the two agencies.
Why it matters:
This move could streamline oversight, but it also means districts may need to rely more on HHSC for interpretation and guidance, especially as policy evolves.
2. HB 500 Didn’t Deliver SHARS Funding — But There’s a Silver Lining
The SHARS community watched House Bill 500, which initially proposed over $900 million in supplemental funding to help address disallowed reimbursements from previous years. Unfortunately, that funding was cut before the bill passed. But the story doesn’t end there.
Instead, lawmakers increased Special Education funding and adjusted the funding methodology, which could help districts absorb some of the same costs — just through a different channel.
What to watch:
This change may provide financial relief, especially for districts with growing special education needs.
3. HHSC Competency Requirements for PCS Staff May Be Changing
A lesser-known but critical change is on the horizon: HHSC is proposing a new rule that would allow qualified school employees — not just licensed health care providers — to verify Personal Care Services (PCS) staff competency.
This update, expected to go into effect by Oct. 1, could offer more flexibility for schools. It will also require clear local training procedures and solid documentation practices.
Action step:
Start reviewing your internal oversight process now, so you’re ready when this policy takes effect.
What Districts Should Be Doing
- Stay informed: The SHARS landscape is evolving at both the state and federal level
- Review your internal processes: Especially related to PCS provider oversight and documentation
- Keep advocating: Your voice matters! Legislators and agencies need to understand the impact on students
Want to Stay in the Loop?
TASB School Medicaid Services offers, SHARS Matters, a newsletter and webinar series that keeps districts up to date on policy changes, compliance updates, and funding developments — all tailored to Texas schools. Subscribe for free.
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