HB 5302

Overall Vote Recommendation
Yes
Principle Criteria
neutral
Free Enterprise
neutral
Property Rights
positive
Personal Responsibility
negative
Limited Government
neutral
Individual Liberty
Digest
HB 5302 establishes the Texas Post-adoption Assistance Program to provide financial assistance for certain post-adoption expenses incurred by families who adopt children from the Texas foster care system. The bill directs the Comptroller to administer the program by certifying eligible nonprofit organizations that may solicit donations, distribute grants to qualifying adoptive parents, and undergo annual independent audits. Certified organizations must distribute at least 97 percent of donated program funds as grants and may use no more than three percent for administrative expenses.

To qualify for assistance, an adoptive parent must reside in Texas, have adopted a child from the state's foster care system who is under 18 years of age, and agree to remain a Texas resident for at least six months each fiscal year in which grant funds are received. Annual grants are capped at $2,000 for families adopting one child and $1,500 per child for families adopting multiple children. Grant funds may be used only for specified post-adoption expenses, including behavioral and psychological therapy, specialized tutoring, respite care, therapeutic camps, transportation for therapeutic services or family visitation, equine or music therapy, and other approved therapeutic activities.

The bill also requires the comptroller to establish procedures for grant accounts, allows recipients to carry forward a limited portion of unused funds to the following fiscal year, and authorizes the adoption of rules necessary to administer and enforce the program. In addition, the bill authorizes state matching funds for grants when appropriated by the Legislature, although certified organizations may continue operating the program using private donations if sufficient appropriations are unavailable.

The Committee Substitute makes several substantive changes to the originally filed version while retaining the bill's overall objective of providing post-adoption financial assistance for families who adopt children from the Texas foster care system. Most notably, the Committee Substitute restructures the program from an "account" model into a grant program. The introduced bill would have established individual post-adoption assistance accounts funded by certified organizations, whereas the Committee Substitute instead authorizes annual post-adoption assistance grants awarded to eligible parents and administered through accounts established by the Comptroller. The substitute also renames the program from the Texas Foster Care Post Adoption Assistance Account Program to the Texas Post-adoption Assistance Program, removing references to "accounts" and "foster care" from the program title while retaining eligibility for children adopted from the Texas foster care system.

The Committee Substitute also substantially reorganizes eligibility and administration. The introduced bill combined parent eligibility requirements, account administration, carry-forward limits, account termination, and permissible uses into a single eligibility section. The substitute separates these concepts into distinct statutory sections governing initial eligibility, continuing eligibility, annual grant awards, grant administration, and eligible expenditures. It also requires eligible parents to enter into an agreement with a certified organization acknowledging residency, permissible uses of grant funds, and notification requirements if eligibility changes, providing a more structured administrative framework than the originally filed bill.

The Committee Substitute further refines how assistance funds are administered and spent. Rather than simply directing certified organizations to establish and fund assistance accounts, the substitute requires the comptroller to establish a standardized account system by rule through which grant recipients may access funds. It also expands and clarifies the list of authorized expenditures by specifying transportation for therapeutic activities and visitation with relatives within the third degree of consanguinity, support for open adoption agreements, respite care, therapeutic camps, equine and musical therapy, specialized tutoring, behavioral and psychological therapy, and other therapeutic services. Additionally, certified organizations must distribute grant funds in accordance with both the annual grant award provisions and the eligible-use requirements, providing greater statutory guidance than the introduced version.
Fiscal Notes

According to the Legislative Budget Board (LBB), HB 5302 would have an estimated negative General Revenue impact of $2.052 million during the 2026–27 biennium, consisting of approximately $1.35 million in fiscal year 2026 and $702,000 annually thereafter. The bill itself does not appropriate funding but would provide the statutory authority for future appropriations necessary to implement the Texas Post-adoption Assistance Program.

The projected costs are primarily driven by the administrative responsibilities assigned to the Comptroller of Public Accounts. The LBB estimates the agency would require eight additional full-time employees, including contract specialists and program specialists, to certify participating organizations, review grant applications, administer the program, conduct compliance oversight, develop audit guidelines, adopt administrative rules, and manage approximately 1,000 applications annually. Annual personnel costs are estimated at $702,000. In addition, the Comptroller anticipates a one-time information technology cost of $648,000 in fiscal year 2026 to develop an online grant management system capable of processing applications, disbursing grant funds, and generating compliance reports.

The LBB also notes that the bill could result in additional indeterminate state costs because certified organizations would be eligible to receive state matching funds for post-adoption assistance grants. Since the number of participating organizations, the amount of private donations received, and the value of grants awarded cannot be predicted, the potential cost of the state matching component cannot be estimated. Finally, the LBB concludes that the bill is not expected to have a significant fiscal impact on local governments.

Vote Recommendation Notes

HB 5302 seeks to strengthen permanent adoption by helping families meet the ongoing therapeutic and support needs that often arise after adopting children from the Texas foster care system. By partnering with certified nonprofit organizations to administer grants funded primarily through private donations, the bill attempts to leverage civil society to address a targeted need rather than relying exclusively on direct government service delivery. The committee bill analysis indicates the legislation is intended to improve adoption stability by filling gaps in existing post-adoption support and encouraging more families to adopt children from foster care.

The bill does expand the role of state government by creating a new program within the Comptroller's office, authorizing rulemaking, establishing oversight responsibilities, and requiring ongoing administration. It also increases taxpayer obligations through implementation costs and authorizes state matching funds, creating some uncertainty regarding future fiscal exposure. Participating nonprofit organizations are also subject to certification, auditing, and compliance requirements, although these regulatory obligations are limited to organizations that voluntarily choose to participate in the program.

On balance, however, the bill's targeted approach, reliance on nonprofit partners, and focus on strengthening adoptive families outweigh its limited-government concerns. Stable adoptions can improve outcomes for children while reducing dependence on the foster care system over the long term, and the program is narrowly tailored to support a specific population rather than creating a broad public entitlement. Although the bill grows government modestly, that expansion is sufficiently limited and directed toward promoting permanent family placement that a Vote Yes is warranted.

  • Individual Liberty: The bill does not impose mandates, prohibitions, or new restrictions on individuals. Participation is entirely voluntary for both adoptive families and nonprofit organizations, and the legislation neither expands criminal penalties nor limits individual rights. While recipients must comply with eligibility requirements and use grant funds for authorized purposes, those conditions are voluntary and tied to acceptance of public assistance rather than coercive government action.
  • Personal Responsibility: The bill encourages and supports private individuals who assume the significant responsibility of adopting children from the Texas foster care system. Rather than replacing parental responsibility, it provides targeted assistance to help adoptive families meet the therapeutic and behavioral needs of adopted children. By reinforcing permanent family placement instead of long-term state care, the bill aligns with the principle that families—not government—should be the primary caregivers for children.
  • Free Enterprise: The bill has little direct effect on the broader marketplace. It relies on private, nonprofit organizations to administer grants and encourages charitable giving through public-private partnerships, which reflects some reliance on civil society rather than direct government service delivery. However, participating nonprofits become subject to certification, audit, and compliance requirements, creating a modest regulatory framework. Overall, the bill neither significantly advances nor substantially impedes free enterprise.
  • Private Property Rights: The bill does not affect ownership, use, or transfer of private property. It does not create new eminent domain authority, impose land-use restrictions, or otherwise interfere with property rights. Its provisions are limited to the administration of voluntary grants for eligible adoptive families.
  • Limited Government: The bill expands the role of state government by creating a new program within the Comptroller's office, authorizing rulemaking, establishing oversight and compliance responsibilities, and creating an ongoing administrative structure. It also increases taxpayer obligations through implementation costs and authorizes state matching funds, resulting in both known fiscal impacts and potential future fiscal exposure. While the program is relatively targeted and leverages private nonprofit partners, it nevertheless represents a measurable expansion of state responsibilities.
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