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Bill

SB 738

Relating to the use of unclaimed lottery prize money to benefit the child-care services program administered by the Texas Workforce Commission.

89th Legislature (2025) Introduced by José Menéndez

SB 738 redirects unclaimed Texas lottery prize money to fund child-care services through the Texas Workforce Commission, creating new revenue for working families' child-care assistance.

Referred to Finance
#amusements #games #sports(i0034) #daycare(i0209) #education--primary&secondary--finance(i0250) #statefinances--management&control(i0748) #workforcecommission #texas(v0470)
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Bill Summary · SB 738

Legislative bill overview

SB 738 would redirect unclaimed lottery prize money to fund the child-care services program administered by the Texas Workforce Commission. This bill creates a new revenue stream for child-care assistance by capturing funds from lottery prizes that go unclaimed after a specified period expires. The legislation aims to support working families' access to affordable child care without requiring new general revenue appropriations.

Why is this important

Child-care costs represent a significant burden for working families and affect workforce participation, particularly among low-income Texans. Unclaimed lottery prizes represent "found money" that currently reverts to the state lottery fund, so redirecting these funds could expand child-care services at minimal political cost. This approach addresses a documented need—Texas has long waiting lists for subsidized child-care assistance—while using existing revenue rather than increasing taxes or cutting other programs.

Potential points of contention

  • Lottery fund sustainability: Diverting unclaimed prize money may reduce resources available for lottery operations, education funding (which typically receives lottery revenue), or other programs that depend on lottery revenues
  • Fiscal uncertainty: Unclaimed prize money fluctuates year to year, making it an unpredictable funding source for ongoing child-care services that require stable, long-term budgets
  • Alternative uses of lottery revenue: Stakeholders may debate whether unclaimed lottery funds should prioritize education, infrastructure, or other state priorities over child-care services

Compiled from official sources — confirm details with the bill’s official record.

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