Texas Border Business
Texas Border Business
The 89th Texas Legislature concluded its regular session on June 2, 2025, after passing over 1,200 bills. The session reflected a strong effort by Republican lawmakers to advance a conservative agenda in education, taxation, public safety, health, and state governance.
In education, lawmakers approved Senate Bill 2, which created a $1 billion private school voucher program set to launch in 2026. The initiative, the largest of its kind in the country, offers up to $30,000 for students with disabilities and $2,000 for home-schooled students. Public education also saw major investment through House Bill 2, which allocated $8.5 billion for teacher pay raises and infrastructure improvements. Teachers in larger districts will see $2,500 to $5,000 raises, while those in smaller districts may receive up to $8,000. Senate Bill 568 introduced a new funding model for special education, linking support to individual student needs and providing $125 million for staffing and transportation.
Tax relief was another central theme. Senate Bills 4 and 23 raised homestead exemptions, aiming to save homeowners hundreds of dollars annually. These changes came as part of a larger $338 billion two-year state budget, which redirected many funding responsibilities to local governments despite a $24 billion surplus.
In the criminal justice arena, Senate Bill 9 limited bail for violent crimes to elected district judges and removed noncash bond eligibility for additional offenses. Senate Bill 40 barred public funding for bail bonds, while House Bill 75 required written justification from magistrates when dismissing cases for lack of probable cause. Meanwhile, Senate Bill 10 mandated the display of the Ten Commandments in public school classrooms, igniting renewed debate over the separation of church and state.
Health and consumer legislation also featured prominently. Senate Bill 3 proposes a ban on consumable hemp-derived THC products containing psychoactive compounds, while allowing non-psychoactive cannabinoids. The bill awaits Governor Abbott’s decision. Senate Bill 2308 established Texas as a national leader in ibogaine research, dedicating $50 million to FDA-approved trials targeting addiction and PTSD. Senate Bill 25 will require warning labels by 2027 on foods with synthetic dyes banned in the EU.
On immigration and state infrastructure, Senate Bill 8 compels sheriffs to work with federal immigration authorities, expanding Texas’s role in enforcement. Senate Bill 22 dedicates $1.5 billion through 2035 to the state’s film incentive fund to boost production. Senate Bill 21 establishes a state-managed bitcoin reserve, the first of its kind in the U.S.
Several high-profile proposals did not pass. These included Senate Bill 240, which would have restricted bathroom access based on biological sex, and Senate Bill 2880, which sought tighter restrictions on abortion pills. Senate Bill 16, proposing stricter voter ID laws, also failed, along with House Bill 186, which aimed to ban minors from social media platforms.
Governor Greg Abbott has until June 22 to sign, veto, or allow bills to become law without his signature. Most new rules are scheduled to take effect on September 1, 2025.
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