Texas Autism Program funding could disappear from the state’s next two-year budget, despite a recent expansion of eligibility. The proposed $13.7 million reduction concerns the Texas Health and Human Services Commission’s Children’s Autism Program, which supports autism therapy through community providers. State records and provider accounts show what is at stake and when funding decisions take effect.
Key Takeaways
- The state health agency proposed eliminating $13,663,084 in Children’s Autism Program funding for fiscal years 2028 and 2029
- Texas broadened eligibility to autistic people younger than 22 on August 25, 2026
- The program served 583 children in fiscal 2026, while contractors reported at least 1,000 children on waiting lists
- Funding remains in place through August 2027, and the proposed elimination has not been enacted
The Texas Autism Program faces a potential loss of its entire state appropriation after the agency overseeing it placed the service on a list of reductions for the 2028–29 budget. The request came shortly after Texas increased the age limit for participants, creating a contrast between wider eligibility and the prospect of no dedicated funding in the following budget period.
The Children’s Autism Program provides focused applied behavior analysis, or ABA, through local agencies and organizations. Families may pay reduced fees based on household income and insurance coverage. The program has operated in Texas since 2008. The proposal has not ended the program, but its scale has prompted questions about treatment access for children already receiving services and those still waiting for openings.
The $13.7 Million Reduction Would Remove the Entire Allocation
In its 2028–29 budget request, the Texas Health and Human Services Commission proposed no money for the Children’s Autism Program under its 3% agencywide reduction schedule. The affected $13,663,084 is the full state allocation for the current 2026–27 biennium, equivalent to approximately $6.8 million per year.
The 3% target applies to the agency’s overall spending plan, not an across-the-board reduction of 3% for each service. The children’s program would instead lose 100% of its direct state funding if that proposal is adopted. The Texas Legislature will write the next two-year budget in 2027 and can decide whether to keep, reduce or eliminate the allocation.
The state funds the program through general revenue rather than through a federal matching arrangement. According to the commission’s published reduction explanation, officials sought to limit direct effects on clients and preserve federal funding. The program’s entire allocation nevertheless appears on the proposed reduction list.
“We were really shocked to see nothing,” said Jacquie Benestante, executive director of the Autism Society of Texas, referring to the program’s proposed disappearance from the next budget.
Other state support programs have faced separate changes. For example, Texas child care subsidy reductions lowered the targeted number of scholarship-supported child care seats for 2027. Those scholarships are administered separately and do not determine the autism program’s appropriation.
Texas Autism Program Eligibility Expanded Just Weeks Earlier
New state rules took effect August 25, 2026, widening eligibility from ages 3 through 15 to autistic Texans younger than 22. The changes also removed a former limit of 180 service hours per year, while maintaining a lifetime limit of 720 hours of focused ABA through the program.
The revised rules require a documented autism diagnosis and other eligibility conditions. Contractors must develop treatment plans with families, set measurable goals, review progress and provide parent training. Treatment can address individual communication, daily-living skills or behaviors identified during an assessment.
The revised age threshold allows some older teenagers and young adults to qualify under the rules. It does not mean every eligible person can enter treatment immediately. Providers maintain interest lists when available staffing, appointments or funding do not support immediate enrollment.
A state contract helps pay for services that might otherwise depend on private coverage or a family’s ability to pay. The program uses a monthly cost-sharing calculation, and the rules address payments by outside insurers. Individual costs can therefore vary, with some families receiving services without monthly payments.
Program participation also depends on continued appropriations. The updated regulations expressly link the commission’s authority to operate the Children’s Autism Program to funding provided by the Legislature. As a result, the rule expansion and the next budget request describe different parts of the program: who may qualify and whether the state continues financing the services.
Waitlists and Insurance Rules Shape the Potential Impact
In fiscal year 2026, state funding supported treatment for 583 children, according to figures made public in October. Contractors reported at least 1,000 additional children on waiting lists across Texas. The program works with 16 contracted providers, making each provider’s local availability relevant to enrollment.
At the University of Houston-Clear Lake’s Center for Autism and Developmental Disabilities, director Dorothea Lerman said its state-supported services reached 41 families last year while about 200 remained on a waiting list.
“There is no other option for the majority of them,” Lerman said, describing her assessment of families who could lose access if the funding ends.
Lerman also said the center lacked the infrastructure to bill Medicaid or private insurance for those services. That limitation matters because an existing insurance benefit does not automatically allow a family to continue treatment at the same clinic.
Texas Medicaid separately covers medically necessary ABA services for eligible members age 20 and younger. The Texas Medicaid provider manual requires clinical documentation, appropriate referrals and qualified providers. Families may also have coverage through private health plans, depending on their policies and participating clinicians.
Coverage and appointment availability are separate considerations. Even a family with a covered benefit may need to locate a provider accepting that form of payment and taking new patients. The commission has acknowledged qualified-provider shortages, particularly in rural parts of Texas.
Other initiatives seek to address different healthcare access barriers, including rural Texas telehealth services. Those efforts do not establish replacement capacity for focused ABA services delivered by Children’s Autism Program contractors.
The agency has said children would continue receiving services through August 2027 if lawmakers approve the elimination. September 1, 2027, is the first day of fiscal year 2028, when the proposed reduction would begin. The Texas Autism Program therefore remains funded for the current budget cycle, while its funding beyond that date awaits a legislative decision.
Frequently Asked Questions
Has Texas eliminated the Children’s Autism Program?
No. The Texas Health and Human Services Commission has proposed eliminating the Texas Autism Program allocation for fiscal years 2028 and 2029. Lawmakers have not approved that proposal.
How much funding could the program lose?
The proposal would remove $13,663,084 over two fiscal years, equivalent to about $13.7 million. That represents the full amount allocated to the program for the current biennium.
Who is eligible for the program after the 2026 expansion?
Rules effective August 25, 2026, extend eligibility to Texans with an autism diagnosis who are younger than 22, subject to other conditions. Entry into services also depends on provider capacity and available funding.
Does Medicaid cover autism therapy in Texas?
Texas Medicaid covers medically necessary ABA services for eligible children and young adults through age 20. Coverage does not ensure that every participating provider accepts Medicaid or has available appointments.
When could the funding change take effect?
The proposed reduction concerns the budget period beginning September 1, 2027. The agency has said current program services would continue through August 2027 if the proposal is adopted.
