Why Texas School Districts Must Act Now to Protect SHARS Funding

 

The Texas Legislature is just one vote away from passing Senate Bill 1952, a proposal that, on the surface, claims to address Medicaid fraud—but in reality, could permanently strip away transparency, oversight, and collaboration from the way the School Health and Related Services (SHARS) program is managed in Texas.

Unless this bill is amended immediately, the future of SHARS funding for Texas school districts—and the vulnerable students it supports—is at serious risk.

What Is SB 1952?

As currently written, SB 1952 would allow the Texas Health and Human Services Commission (HHSC) to make sweeping changes to SHARS policy without requiring:

• A fiscal impact analysis
• Stakeholder engagement from TEA or school districts
• Alignment with federal CMS guidelines

In other words, it gives HHSC unchecked authority to make rules that impact hundreds of millions of dollars in school-based Medicaid funding—with no requirement to explain, consult, or justify.

We’ve Already Seen the Consequences

This is not a theoretical concern. Since 2023, HHSC’s unilateral decisions have already cost Texas school districts an estimated $1.8 billion in SHARS reimbursements.

The most egregious example came in December 2023, when HHSC:

• Retroactively changed how FFY 2022 cost reports were calculated
• Used a 2011 audit that was never intended to apply to future fiscal years
• Did not inform TEA, CMS, or school districts before implementing the change

That single decision wiped out over $600 million in expected SHARS reimbursements statewide—funds districts had already budgeted and counted on to support student services.

The audit HHSC cited only recommended a $18.9 million refund. HHSC turned it into a statewide recalculation that was never federally required.

Why the SB 1952 Amendment Is Critical

A simple, reasonable amendment to SB 1952 has been proposed. It would ensure that before any future SHARS rule takes effect, HHSC must:

• Disclose its fiscal impact publicly
• Engage school districts and TEA in the rule-making process
• Demonstrate compliance with CMS

Without this amendment, more districts will be blindsided by policy shifts that disrupt services, threaten compliance, and eliminate critical Medicaid reimbursements with no warning or recourse.

How You Can Help

SB 1952 is now headed to its third and final reading in the Texas House. We are urging all school leaders, board members, special education professionals, and advocates to take action today:

1. Email Emily Fankell, Chief of Staff for Representative Lacey Hull, who chairs the House Human Services Committee. Ask her office to support the amendment to SB 1952.
   • Email: emily.fankell@house.texas.gov
   • Phone: (512) 463-0727
2. Email your own State Representative and urge them to either vote NO on SB 1952 or support the amendment before it’s too late.

Click HERE to copy email templates you can send in minutes.

Why This Matters

SHARS is one of the most vital funding streams available to public schools to support students with disabilities. The proposed amendment is not about politics—it’s about safeguarding essential services, restoring trust in rule-making, and ensuring no more funding is lost in silence.

Onward Learning proudly stands with districts across Texas in asking our elected officials to take a balanced, transparent, and collaborative approach to SHARS policy.

We urge you to make your voice heard today.

 

If you have questions or would like help contacting your representatives, please email us at Jeff@onwardlearning.com or reach out to your Onward Account Manager.