JD Key Consulting Logo
SB897

Regular Session

Relating to the administration of a grant program to support community mental health programs assisting veterans and their families.

Moderate
Low Cost
Effective:2025-09-01
SB897
Moderate
Relating to the administration of a grant program to support community mental health programs assisting veterans and their families.
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
HHSC
Primary Author: Sen. Cesar Blanco
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025.
  • Compliance Deadline: Applies immediately to any grant agreement entered into or renewed on or after September 1, 2025. Grants awarded prior to this date remain subject to the former 100% match requirement.
  • Agency Rulemaking: HHSC is not required to promulgate new administrative rules but must update Grant Application Guides and Request for Applications (RFA) documentation for the FY26 cycle. Watch for these updates between June and August 2025.

Immediate Action Plan

  • Verify Eligibility: Confirm your service area (or the largest county in your multi-county service area) has a population exceeding 250,000 based on the most recent census data.
  • Dual-Track Budgeting: Prepare two budget scenarios for FY26 grant applications: one utilizing the 75% match (Plan A) and one retaining the 100% match (Plan B) in case the legislative appropriation trigger is not met.
  • Monitor Appropriations: Direct your government relations team to track the specific line item for "Veteran Community Mental Health Programs" in the General Appropriations Act to confirm if the mandatory trigger in Section 3 is activated.
  • Delay Execution: If negotiating a grant renewal near August 2025, attempt to delay final signature until after September 1, 2025, to capture the lower match rate (funding permitting).

Operational Changes Required

Contracts

  • Grant Agreements: Legal counsel must review FY26 grant contracts from HHSC. Ensure the "Match Contribution" schedule reflects the 75% ratio (0.75 non-state dollars for every 1.00 state dollar) rather than the previous 1:1 requirement.
  • Donor MOUs: Review Memoranda of Understanding with third-party funders (foundations, municipalities). You may now require less capital from partners to unlock the maximum state award. You must decide whether to reduce their contribution request or maintain it to leverage a larger aggregate grant.

Hiring/Training

  • Finance & Grant Management: Grant administrators must adjust pro-forma budgets for FY26 applications. Staff must be trained to calculate the new match ratio to avoid over-committing organizational reserves.

Reporting & Record-Keeping

  • Match Verification: Documentation proving the source of matching funds remains required. However, the *aggregate amount* required for compliance audits will decrease by 25% for eligible urban providers.

Fees & Costs

  • Capital Relief: This law lowers the cost of capital. For a hypothetical $1M state grant, the required organizational contribution drops from $1M to $750,000, freeing up $250,000 in unrestricted funds for other operational uses.

Strategic Ambiguities & Considerations

The Appropriation Trigger (Section 3):

The reduction to a 75% match is not guaranteed. The law states HHSC is only *required* to implement the lower match if the Legislature appropriates *more* money to this program than in the previous biennium.

  • The Risk: If the Legislature flat-lines the budget, HHSC has the discretion ("may, but is not required") to implement the lower match.
  • The Watch: Do not assume the 75% rate is active until the General Appropriations Act is finalized and HHSC releases the specific RFA for FY26 confirming the rate.

Need Help Understanding Implementation?

Our government affairs experts can walk you through this bill's specific impact on your operations.

Schedule Consultation

Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Jan 24, 2025
Passed Senate
Apr 10, 2025
Passed House
Apr 30, 2025
Signed
May 15, 2025
TopicsCounty GovernmentCounty Government--generalMental Health & Substance AbuseMilitary & VeteransHealth & Human Services Commission
03

Senate Authors

Sen. Cesar BlancoDemocrat · Primary Author
Coauthors (1)

House Sponsor

Rep. Ray LopezDemocrat · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

Explore more bills from this author and on related topics

More from Sen. Cesar Blanco

View all bills by Sen. Cesar Blanco

Related by Topic

View more County Government legislation
Quick Reference

Frequently Asked Questions

Common questions about SB897

Q

What does Texas SB897 do?

SB897 reduces the mandatory non-state matching funds requirement for veteran mental health grants from 100% to 75% for entities operating in counties with populations exceeding 250,000. This capital relief is legally contingent upon the Legislature increasing the program's total appropriation for the next biennium; without increased funding, the Health and Human Services Commission (HHSC) retains discretion to maintain the higher 100% match rate. Implementation Timeline Effective Date: September 1, 2025.

Q

Who authored SB897?

SB897 was authored by Texas Senator Cesar Blanco during the Regular Session.

Q

When was SB897 signed into law?

SB897 was signed into law by Governor Greg Abbott on May 15, 2025.

Q

Which agencies enforce SB897?

SB897 is enforced by Health and Human Services Commission (HHSC).

Q

How urgent is compliance with SB897?

The compliance urgency for SB897 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of SB897?

The cost impact of SB897 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB897 address?

SB897 addresses topics including county government, county government--general, mental health & substance abuse, military & veterans and health & human services commission.

Legislative data provided by LegiScanLast updated: November 25, 2025

Need Strategic Guidance on This Bill?

Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.