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Signed Into Law
Signed June 20, 2025Effective 2025-09-01
SB1388

Regular Session

Relating to family support services provided under a Health and Human Services Commission program.

Government Affairs & Regulatory Compliance Analysis

SB1388: Government Affairs Overview

SB1388 fundamentally restructures the Thriving Texas Families Program (formerly Alternatives to Abortion) by statutorily excluding governmental entities and non-grandfathered medical providers from funding eligibility. Current contractors must immediately audit their corporate structure and vendor relationships to ensure total separation from abortion service providers, as the law mandates strict new annual certifications and authorizes immediate contract termination for non-compliance.

Sen. Lois Kolkhorst·Senate Bill·Regular Session

Critical
Medium Cost
Effective:2025-09-01
Business Impact

Who SB1388 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: critical

Significant regulatory changes (effective 2025-09-01). Review with your legal and compliance teams to understand implications.

🏥

Healthcare

Affected business types:

  • Hospitals
  • Healthcare systems
  • Medical practices
  • Health insurance providers
View all healthcare legislation
🏭

Manufacturing & Business

Affected business types:

  • Manufacturers
  • Industrial facilities
  • Supply chain companies
  • Logistics providers
View all manufacturing & business legislation

Key Operational Considerations

  • 1Subcontractor Indemnification: You must amend vendor agreements (especially for housing and job training) to include warranties that the vendor is not an "affiliate" of an abortion provider.

Estimated Cost Impact

mediumModerate costs expected for implementation.

Enforcing Agencies

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SB1388
Critical
Relating to family support services provided under a Health and Human Services Commission program.
Critical Compliance Urgency
Requires immediate attention
Cost Impact
Medium
Effective
2025-09-01
Enforcing Agencies
HHSC
Primary Author: Sen. Lois Kolkhorst
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: September 1, 2025. (You must meet eligibility and corporate separation requirements on day one to retain funding).
  • Agency Rulemaking: HHSC is required to adopt rules "as soon as practicable" after the effective date.
  • *Regulatory Gray Zone:* Between September 1, 2025, and final rulemaking, the statutory prohibitions are active, but the specific forms for the "simplified process" (for providers with <$2M revenue) and specific "performance indicators" will likely be undefined. Operate under the strictest interpretation of the statute until rules are finalized.

Immediate Action Plan

  • 1. Determine Eligibility: If you are a medical provider, confirm you hold a contract pre-dating Sept 1, 2023. If you are a governmental entity, prepare to offboard from the program.
  • 2. Audit the Board: Review all board members and key executives for cross-affiliations with abortion providers. Request resignations where conflicts exist.
  • 3. Scrub Referral Lists: Remove any entity from your resource database that facilitates, funds, or advocates for abortion to prevent accidental prohibited referrals.
  • 4. Update Housing Protocols: If you offer housing services, integrate the new "housing assistance" reimbursable category into your billing workflow.
  • 5. Draft Certification: Prepare the "Life-Affirming Mission" certification template now so it is ready for signature immediately upon the law's effective date.

Operational Changes Required

Contracts

  • Subcontractor Indemnification: You must amend vendor agreements (especially for housing and job training) to include warranties that the vendor is not an "affiliate" of an abortion provider.
  • Employment & Board Agreements: Update bylaws and employment contracts to explicitly prohibit simultaneous service on the board or staff of an abortion services provider. This is now a disqualifying event for state funding.
  • Grandfathering Documentation: If you are a medical or mental health provider, locate and preserve your original HHSC contract dated prior to September 1, 2023. Without this, you are statutorily ineligible.

Hiring/Training

  • Referral Ban Training: Staff must be trained that providing "information or education" regarding abortion services is prohibited. Update intake scripts to ensure no referrals are made to entities classified as abortion providers or their affiliates.
  • Officer Vetting: Conduct immediate due diligence on all Directors and Officers. Any shared governance with an abortion provider triggers funding forfeiture.

Reporting & Record-Keeping

  • Annual Certification: You must file a written annual certification with HHSC confirming adherence to the program's "life-affirming mission" and non-involvement in contradicting activities.
  • Performance Outcomes: Prepare data systems to track long-term client outcomes (e.g., housing stability, workforce entry) rather than just service outputs. HHSC will mandate specific indicators shortly.
  • Corporate Separation: Maintain distinct books, payroll, and physical premises from any entity that could be construed as an abortion provider to satisfy the "objective integrity" requirements.

Fees & Costs

  • Funding Risk: The primary financial impact is the potential total loss of grant eligibility for non-compliance.
  • Administrative Costs: Budget for legal review of corporate structure and increased reporting burdens, though providers with <$2M revenue may eventually see reduced administrative costs once the "simplified process" is defined.

Strategic Ambiguities & Considerations

  • "Advocating For" Abortion: The definition of a prohibited "abortion services provider" includes entities that "advocate for" abortion. The statute does not define the threshold for advocacy.
  • *Risk:* Does a personal social media post by a senior staff member constitute organizational advocacy?
  • *Strategy:* Tighten social media and external communication policies immediately to avoid ambiguity.
  • Performance Indicators: The specific metrics for "performance outcomes" are not yet defined.
  • *Strategy:* Participate in the comment period. If you do not, HHSC may select metrics that are irrelevant to your service model or impossible to track retrospectively.

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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
Feb 19, 2025
Passed Senate
Apr 2, 2025
Passed House
May 20, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsAbortionFamilyFamily--parent & ChildHealth & Human Services CommissionPregnancy & ChildbirthBusiness & CommerceBusiness & Commerce--copyright, Patents, & TrademarksHealth Care ProvidersHousingHousing--generalPolitical SubdivisionsState Agencies, Boards & CommissionsAdoptionMedicine & Prescription Drugs
03

Senate Authors

Sen. Lois KolkhorstRepublican · Primary Author
Coauthors (5)

House Sponsors

Rep. James FrankRepublican · Primary Sponsor
Joint Sponsors
Cosponsors (2)

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. Lois Kolkhorst

View all bills by Sen. Lois Kolkhorst

Related by Topic

View more Abortion legislation
Quick Reference

Frequently Asked Questions

Common questions about SB1388

Q

What does Texas SB1388 do?

SB1388 fundamentally restructures the Thriving Texas Families Program (formerly Alternatives to Abortion) by statutorily excluding governmental entities and non-grandfathered medical providers from funding eligibility. Current contractors must immediately audit their corporate structure and vendor relationships to ensure total separation from abortion service providers, as the law mandates strict new annual certifications and authorizes immediate contract termination for non-compliance.

Q

Who authored SB1388?

SB1388 was authored by Texas Senator Lois Kolkhorst during the Regular Session.

Q

When was SB1388 signed into law?

SB1388 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB1388?

SB1388 is enforced by Health and Human Services Commission (HHSC).

Q

How significant are the changes in SB1388?

The regulatory priority for SB1388 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB1388?

The cost impact of SB1388 is estimated as "medium". This may vary based on industry and implementation requirements.

Q

What topics does SB1388 address?

SB1388 addresses topics including abortion, family, family--parent & child, health & human services commission and pregnancy & childbirth.

Q

What are the key dates for SB1388?

Key dates for SB1388: Effective date is 2025-09-01. Rulemaking: Adopt rules to implement the Act, specifically regarding provider eligibility and simplified grant processes for small providers (revenue < $2M). (As soon as practicable after 2025-09-01). Consult with legal counsel regarding applicability.

Q

What are the penalties under SB1388?

SB1388 establishes the following penalties: administrative penalty of Forfeiture of grant eligibility/funding for Organization is a governmental entity, hospital, primarily a medical/mental health provider (unless grandfathered), or shares staff/governance with an abortion provider.; contractual penalty of Contract termination for Failure to provide annual written certification of adherence to life-affirming mission or involvement in contradicting activities.. Consult with legal counsel for specific applicability to your situation.

Q

Which Texas businesses are affected by SB1388?

SB1388 primarily affects healthcare providers and medical facilities, Texas businesses and commercial enterprises. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026