Texas School Districts: Urgent Alert on S.B. 1952 and the Future of SHARS Administration

Texas school districts are facing a critical legislative proposal that could dramatically alter the administration of Medicaid reimbursements under the School Health and Related Services (SHARS) program. Senate Bill 1952 (S.B. 1952), currently under consideration in the Texas Legislature, would transfer full oversight of SHARS to the Texas Health and Human Services Commission (HHSC), removing the Texas Education Agency (TEA) from its long-standing role in supporting school districts in the Medicaid reimbursement process.

This proposed shift raises serious concerns for school districts that rely on clear guidance, training, and support to navigate SHARS billing and compliance. We urge all Texas school leaders to understand the potential risks and take action before this bill becomes law.

What is S.B. 1952?

S.B. 1952 proposes to centralize SHARS administration under HHSC, eliminating TEA’s involvement in overseeing and guiding school districts through the program. While the bill aims to streamline operations, it introduces significant risks for districts that depend on TEA’s expertise in education-focused Medicaid compliance.

Key Provisions of the Bill

Shifts Oversight to HHSC – HHSC will become the sole authority managing SHARS, handling all provider training, compliance guidance, and administrative functions.
Eliminates TEA’s Support Role – TEA will no longer be involved in SHARS oversight, limiting its ability to assist school districts with Medicaid reimbursement issues.
Involves Regional Education Service Centers (ESCs) – While ESCs will be tasked with providing SHARS-related resources and guidance, their level of authority and effectiveness in handling Medicaid billing processes remain unclear.
Requires a Memorandum of Understanding (MOU) Between HHSC and TEA – The agencies must agree on their respective roles, but ultimate control will rest with HHSC.
Federal Compliance & Delays – If any provision requires federal approval, implementation could be delayed indefinitely, disrupting the reimbursement process for school districts.

If passed, S.B. 1952 will take immediate effect with a two-thirds legislative vote or go into effect on September 1, 2025.

Why Texas School Districts Should Oppose S.B. 1952

While supporters claim this bill will improve efficiency, the reality is that it could create more bureaucratic barriers for school districts trying to access Medicaid funds.

Major Concerns for Texas Schools

Greater Risk of State-Imposed Funding Cuts – With HHSC in full control, future funding restrictions could be implemented without educational oversight or legislative review. This places Texas school districts in a vulnerable position where critical funding decisions are made without input from education experts.

Increased Administrative Burdens – TEA and ESCs currently provide essential training and hands-on support for school staff managing SHARS documentation. HHSC has no history of directly supporting school districts in this capacity. Without TEA’s guidance, school personnel may struggle to navigate Medicaid rules, leading to errors, denials, and lost reimbursements.

Delayed Medicaid Reimbursements – HHSC’s past record of slow and restrictive policies raises concerns about whether districts will receive timely funding for services provided to students with disabilities. Given the agency’s history of clawbacks and overcorrections, schools may face longer processing times and stricter audits under HHSC control.

Loss of Education-Centered Expertise – TEA understands how Medicaid reimbursement fits within the broader education system, ensuring that special education students receive the necessary services without unnecessary administrative obstacles. Removing TEA’s role will shift SHARS into a purely health-based model, potentially overlooking critical education-based factors that schools must navigate.

Uncertain Support from ESCs – While ESCs are mentioned in the bill as providing resources and assistance, their exact role in training, compliance support, and advocacy remains undefined. Without a clear structure, districts may face inconsistent levels of support across different regions.

What Can School Districts Do?

Texas school district leaders must take action now to protect Medicaid reimbursements for students with disabilities. If passed, S.B. 1952 could significantly disrupt how schools receive SHARS funding, creating more challenges rather than solutions.

Contact Your Legislators – Tell them to oppose S.B. 1952 and emphasize that school districts need TEA’s continued involvement in SHARS. Legislators must understand the real-world impact of shifting full oversight to HHSC.

Engage With Your Regional ESC – Ask your ESCs what role they will play if S.B. 1952 passes. Demand clarity on how they plan to support districts with SHARS compliance under HHSC oversight.

Educate Your School Leadership – Superintendents, special education directors, and SHARS coordinators must be informed about these proposed changes. Host discussions within your district to develop a collective response against the bill.

Join Advocacy Efforts – Work with education organizations, special education advocacy groups, and SHARS service providers to oppose the bill and advocate for maintaining TEA’s role in school Medicaid funding.

Final Thoughts

The passage of S.B. 1952 would fundamentally alter how Texas school districts access and manage Medicaid reimbursements under SHARS. While centralization under HHSC may appear to streamline operations, the real impact would likely include delayed reimbursements, increased administrative burdens, and a lack of education-focused support for districts.

School district leaders must act now to protect SHARS funding and ensure that TEA remains an essential part of the Medicaid reimbursement process.

Take action today: Contact your legislators and urge them to OPPOSE S.B. 1952!

For more information or assistance in advocacy efforts, please reach out to Onward Learning or your regional ESC. Together, we can ensure that Texas schools continue receiving the Medicaid funding they deserve.