diff --git a/eslint-plugin-expensify/CONST.js b/eslint-plugin-expensify/CONST.js
index 79baf8f..3bc4c1e 100644
--- a/eslint-plugin-expensify/CONST.js
+++ b/eslint-plugin-expensify/CONST.js
@@ -34,5 +34,7 @@ module.exports = {
         PREFER_TYPE_FEST_VALUE_OF: 'Prefer using `ValueOf` from `type-fest` to extract the type of the properties of an object.',
         PREFER_AT: 'Prefer using the `.at()` method for array element access.',
         PREFER_SHOULD_USE_NARROW_LAYOUT_INSTEAD_OF_IS_SMALL_SCREEN_WIDTH: 'Prefer using `shouldUseNarrowLayout` instead of `isSmallScreenWidth` from `useResponsiveLayout`.',
+        NO_USE_STATE_INITIALIZER_CALL_FUNCTION:
+            'Avoid calling a function directly in the useState initializer. Use an initializer function instead (a callback).',
     },
 };
diff --git a/eslint-plugin-expensify/no-use-state-initializer-functions.js b/eslint-plugin-expensify/no-use-state-initializer-functions.js
new file mode 100644
index 0000000..f788e2c
--- /dev/null
+++ b/eslint-plugin-expensify/no-use-state-initializer-functions.js
@@ -0,0 +1,84 @@
+const message = require('./CONST').MESSAGE.NO_USE_STATE_INITIALIZER_CALL_FUNCTION;
+
+module.exports = {
+    meta: {
+        type: 'problem', // This is a potential performance issue
+        docs: {
+            description:
+                'Disallow direct function calls in useState initializer',
+            category: 'Best Practices',
+            recommended: false,
+        },
+        schema: [], // No options for this rule
+        messages: {
+            noDirectCall: message,
+        },
+    },
+    create(context) {
+        return {
+            CallExpression(node) {
+                // Return early if the function being called is not `useState`
+                if (
+                    node.callee.type !== 'Identifier'
+                    || node.callee.name !== 'useState'
+                    || node.arguments.length === 0
+                ) {
+                    return;
+                }
+
+                const firstArg = node.arguments[0];
+
+                // Return early if the first argument is not a function call, member expression with a function call, or conditional expression with function calls
+                if (
+                    firstArg.type !== 'CallExpression'
+                    && !(firstArg.type === 'MemberExpression' && firstArg.object.type === 'CallExpression')
+                    && !(firstArg.type === 'ConditionalExpression'
+                        && (firstArg.consequent.type === 'CallExpression' || firstArg.alternate.type === 'CallExpression'))
+                ) {
+                    return;
+                }
+
+                context.report({
+                    node: firstArg,
+                    messageId: 'noDirectCall',
+                });
+            },
+
+            // Handle cases where the initializer is passed as a function reference
+            VariableDeclarator(node) {
+                if (
+                    !node.init
+                    || node.init.type !== 'CallExpression'
+                    || node.init.callee.name !== 'useState'
+                    || node.init.arguments.length === 0
+                ) {
+                    return;
+                }
+
+                const firstArg = node.init.arguments[0];
+
+                // Return early if the first argument is a function reference (valid case)
+                if (
+                    firstArg.type === 'Identifier' // e.g., `getChatTabBrickRoad`
+                    || (firstArg.type === 'ArrowFunctionExpression'
+                        && firstArg.body.type !== 'CallExpression') // e.g., `() => getChatTabBrickRoad`
+                ) {
+                    return; // Valid case, do nothing
+                }
+
+                // If it's a direct function call, member expression with a function call, or conditional expression with function calls, report it
+                if (
+                    firstArg.type === 'CallExpression'
+                    || (firstArg.type === 'MemberExpression' && firstArg.object.type === 'CallExpression')
+                    || (firstArg.type === 'ConditionalExpression'
+                        && (firstArg.consequent.type === 'CallExpression' || firstArg.alternate.type === 'CallExpression'))
+                ) {
+                    context.report({
+                        node: firstArg,
+                        messageId: 'noDirectCall',
+                    });
+                }
+            },
+        };
+    },
+};
diff --git a/eslint-plugin-expensify/tests/no-use-state-initializer-functions.test.js b/eslint-plugin-expensify/tests/no-use-state-initializer-functions.test.js
new file mode 100644
index 0000000..3cc06ea
--- /dev/null
+++ b/eslint-plugin-expensify/tests/no-use-state-initializer-functions.test.js
@@ -0,0 +1,85 @@
+const RuleTester = require('eslint').RuleTester;
+const rule = require('../no-use-state-initializer-functions');
+const message = require('../CONST').MESSAGE.NO_USE_STATE_INITIALIZER_CALL_FUNCTION;
+
+const ruleTester = new RuleTester({
+    parserOptions: {
+        ecmaVersion: 6,
+        sourceType: 'module',
+    },
+});
+
+ruleTester.run('no-use-state-initializer-functions', rule, {
+    valid: [
+        {
+            // Calling a callback should be valid
+            code: `
+                useState(() => testFunc());
+            `,
+        },
+        {
+            // Calling a callback should be valid
+            code: `
+                useState(() => testFunc().value);
+            `,
+        },
+        {
+            // Calling a callback should be valid
+            code: `
+                useState(condition ? testFunc : testFunc);
+            `,
+        },
+        {
+            // Calling a callback should be valid
+            code: `
+                useState(condition ? () => testFunc() : () => testFunc());
+            `,
+        },
+    ],
+    invalid: [
+        {
+            // Calling a function should be invalid
+            code: `
+                useState(testFunc());
+            `,
+            errors: [
+                {
+                    message,
+                },
+            ],
+        },
+        {
+            // Calling a function should be invalid
+            code: `
+                useState(testFunc().value);
+            `,
+            errors: [
+                {
+                    message,
+                },
+            ],
+        },
+        {
+            // Calling a function should be invalid
+            code: `
+                useState(condition ? testFunc() : testFunc());
+            `,
+            errors: [
+                {
+                    message,
+                },
+            ],
+        },
+        {
+            // Calling a function should be invalid
+            code: `
+                useState(condition ? (() => testFunc())() : (() => testFunc())());
+            `,
+            errors: [
+                {
+                    message,
+                },
+            ],
+        },
+    ],
+});
diff --git a/rules/expensify.js b/rules/expensify.js
index f3e6076..59d199b 100644
--- a/rules/expensify.js
+++ b/rules/expensify.js
@@ -29,6 +29,7 @@ module.exports = {
             }],
         }],
         'rulesdir/prefer-shouldUseNarrowLayout-instead-of-isSmallScreenWidth': 'warn',
+        'rulesdir/no-use-state-initializer-functions': 'error',
     },
 };