Regular Session
Government Affairs & Regulatory Compliance Analysis
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.
Sen. Cesar Blanco·Senate Bill·Regular Session
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.
Affected business types:
lowMinimal cost impact anticipated.
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JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
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.
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation 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.
This bill's path through the Texas Legislature
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Common questions about SB897
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.
SB897 was authored by Texas Senator Cesar Blanco during the Regular Session.
SB897 was signed into law by Governor Greg Abbott on May 15, 2025.
SB897 is enforced by Health and Human Services Commission (HHSC).
The regulatory priority for SB897 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB897 is estimated as "low". This may vary based on industry and implementation requirements.
SB897 addresses topics including county government, county government--general, mental health & substance abuse, military & veterans and health & human services commission.
Key dates for SB897: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.
SB897 primarily affects healthcare providers and medical facilities. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
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.
