HB 3941 expands support services for foster youth transitioning to independent living, including extended Medicaid coverage and transitional living assistance. The bill increases the age limit for certain foster care services from 21 to 23 years old, allowing eligible youth to return to foster care or receive transition services if needed. It also extends Medicaid eligibility for former foster care youth up to age 26, regardless of their income, assets, or resources. The bill directs the Texas Department of Family and Protective Services (DFPS) to enhance transition planning, ensuring youth have access to housing, job training, financial literacy education, mental health care, and assistance with higher education expenses. Additionally, it mandates that contracted service providers help foster youth secure basic necessities such as bank accounts, food preparation skills, and health services. If federal approval is required to implement the Medicaid expansion, the state must request a waiver before proceeding.