Relating to prohibiting single source continuum contractors and child-placing agencies from imposing certain requirements on or adopting certain policies and procedures related to relative and designated caregivers.

HB 5394 prohibits single-source continuum contractors and child-placing agencies in Texas from imposing additional requirements or creating policies related to relative or designated caregivers beyond what is specified in existing law or by the Health and Human Services Commission (HHSC) rules. This directly affects relative caregivers (like grandparents or family friends caring for children) and designated caregivers (those formally approved to care for children in foster care). The bill requires these agencies to follow only the rules explicitly authorized by statute or HHSC regulations, eliminating their ability to add extra conditions. The law took effect on September 1, 2025, after being signed by the Governor on June 20, 2025.