Commentary

89th Texas Legislative Roundup: Wins and Setbacks for Texas Taxpayers

June 6, 2025
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TFR Staff
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89th Legislative Session, Property Tax, School Choice, Spending, State Budget

The 89th Texas Legislative Session came to an end on June 2nd, culminating with several meaningful wins for fiscal conservatives across the Lone Star State, but also leaving them with much to be desired and far more work to be done in future sessions.

Session began with the election of Dustin Burrows, a long-time ally of Speaker Dade Phelan, as the new House Speaker, thanks to an alliance between several establishment Republicans and nearly the entirety of Democrat members. Over the following months, legislators who built their campaigns by championing themselves as fiscal conservatives, instead increased state spending while providing minimal property tax relief. Of course, voters would be remiss to forget the countless long weekends and overall apathy towards passing meaningful legislation in a timely manner. 

When these representatives are running for re-election during the primary season and questioned on their failure to pass numerous pieces of priority legislation, their excuses will certainly include, “we ran out of time.” Texas voters have heard this exact justification time and time again, session after session.

Nonetheless, taxpayers did secure many considerable victories. 

Senate Joint Resolution 18 banned taxes on capital gains, while Senate Bill 17 banned property ownership by hostile foreign nations. Senate Bill 33 ensured that no taxpayer money would be allocated towards abortions of any kind. In the lower chmaber, House Bill 21 provided much needed reform for Housing Finance Corporations, which Texans for Fiscal Responsibility has written on extensively. House Bill 1056 grants the Texas Comptroller the ability to authorize a gold- and silver-backed currency, and House Bill 3053 bans the use of taxpayer dollars to fund gun buyback programs. Among other wins, the expansion of predatory gambling and casino development within the Lone Star State was stopped, for now.

Unfortunately, there were numerous fiscal setbacks for the Texas taxpayer, courtesy of the Austin Swamp. Senate Bill 1, the 2026-27 state budget, is a trojan horse of bloated government spending and expansion, reaching a record $338 billion in spending of taxpayer money. House Bill 500 included even more additions to this reckless spending growth, while Senate Bill 5 created an entirely new funding project at the taxpayer’s expense with the creation of a Texas Dementia Institute. Senate Bill 19, a ban on taxpayer-funded lobbying, failed to pass, even after the inclusion of disastrous amendments that allowed for the continuation of 501c3’s to lobby on behalf of local governments. Senate Bill 1798, which would have banned illegal aliens from receiving in-state tuition at public colleges and universities, also failed to pass. Senate Bill 646 passed, allowing for taxpayer-funded student loan debt forgiveness, and new forms of corporate welfare were introduced, including $1.5 billion in subsidies for Hollywood.

There were also a few mixed-bags thrown in during the 89th Session for good measure. Senate Bill 4 and House Bill 9 did provide some property tax relief, although at disappointingly small amounts, with only about one-fourth of the $24 billion surplus sent back to taxpayers. Senate Bill 2, the school choice bill, finally passed in the legislature, although its universality is relatively underwhelming, providing for a gradual yet slow transition for those trying to flee government schools. Senate Bill 3070 officially abolished the Texas Lottery Commission, but the lottery itself lives on under the Texas Department of Licensing and Regulation.

Texans should commend their elected officials for all of the great wins this session, but demand accountability for their failures. Overall, the 89th Texas Legislative Session leaves a tremendous amount of work to be done to reign in government spending and growth, foster economic prosperity, and provide true relief to the Texas taxpayer. Our work at Texans for Fiscal Responsibility to educate taxpayers, empower voters, and hold elected officials accountable continues in full force.


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