Here’s a quick recap of what happened over the last week:
Winter Storm Approaching
With the winter storm approaching, please be careful and please be safe. Temperatures are going to reach the teens as far south as San Antonio and Houston on Saturday and into Sunday. Snow, ice and a wintry mix will be experienced in most parts of the state, creating hazardous driving conditions.
This storm comes nearly five years after the devastating winter storm in 2021 that brought snow and ice to most parts of the state and freezing temperatures statewide that lasted for days. Due to a woefully unprepared and inefficient power grid, roughly 4.5 million homes and businesses were left without power for days. As a result, 246 people died as a direct result of the storm and loss of power.
State officials held a briefing yesterday in Austin and declared the grid is adequately prepared and no widespread power outages are expected. They did warn that ice accumulations falling tree branches could cause locally isolated, temporary outages. State leaders said that massive preparations are underway to ensure all residents are fully informed and have access to resources necessary to deal with any issues related to the storm. In addition to having teams that will constantly monitor the state’s electric and power supply, the state is coordinating with local governments to ensure residents are aware of and have access to warming centers, will be monitoring water and wastewater supplies, and will be working with the National Guard and local law enforcement to ensure response proper response times in case of emergencies.
Below are some helpful links regarding weather forecasts, safety reminders, and driving conditions.
National Weather Service https://www.weather.gov
Texas Department of Emergency Management https://tdem.texas.gov
Texas Department of Public Safety https://www.dps.texas.gov
Texas Department of Transportation https://www.txdot.gov
I would also encourage you to sign up for alerts with your local media outlets that can provide useful information as well.
Austin American Statesman statesman.com
Houston Chronicle houstonchronicle.com
Dallas Morning News dallasnews.com
Fort Worth Star Telegram star-telegram.com
Tyler Morning Telegraph tylerpaper.com
Lufkin Daily News lufkindailynews.com
Beaumont Enterprise beaumontenterprise.com
Lubbock Avalanche Journal lubbockonline.com
Midland Reporter Telegram mrt.com
El Paso Times elpasotimes.com
Waco Tribune Herald wacotrib.com
Abilene Reporter News reporternews.com
Amarillo Globe News amarillo.com
San Antonio Express News expressnews.com
Corpus Christi Caller Times caller.com
Paxton Attacks Cornyn
While incumbent US Senator John Cornyn – and his affiliated PAC’s – have spent nearly $40 million in advertising focused on attacking Texas Attorney General Ken Paxton – his chief rival in the Republican primary race for the US Senate – Paxton has been relatively low key in his attacks on Cornyn – until now.
Over the weekend, the Paxton campaign released its first ad with AI generated images showing Cornyn and Democratic Congresswoman Jasmine Crockett of Dallas – who is also running for the US Senate on the Democratic side – dancing and smiling, with Crockett complimenting Cornyn as a great “partner” in the Senate. The ad is constructed around quotes and conversations between Cornyn and Crockett that depict a bipartisan working relationship, one Paxton labels as a “liability”.
And then on Monday, things got even nastier between the two. In his role as state Attorney General, Paxton issued a lengthy legal opinion that in part criticized language and guidance issued by Cornyn – who served as Texas Attorney General from 1999-2002 – regarding initiatives intended to mitigate and offset discrimination against women and members of minority groups. The opinion by Paxton targeted a 1999 opinion issued by Cornyn that refused to take a position on the use of race based admissions in the state’s public universities. For his part, Cornyn argued he declined to issue formal guidance because the case was in litigation at the time. Paxton criticized Cornyn for not only furthering the practice of DEI, but establishing the roadmap for the state to require the practice of DEI by state institutions.
The opinion by Paxton went on to say that during his time as AG, he has “dismantled” the practice of diversity, equity, and inclusion (DEI) and declared the practice unconstitutional in the state of Texas. For background, there are two different interpretations of the practice of DEI. Supporters laud the program as the practice of promoting fair treatment and full participation for all, specifically those that are part of minority groups that have been underrepresented or discriminated against. Opponents criticize the practice as being used to simply fulfill quotas and subsequently unfair to more qualified individuals. I will leave you all to form your own opinion on the matter, as I am simply trying to provide perspective on the issues raised in this story.
After taking credit for his fight against DEI, the Paxton opinion went on to warn companies and any other entities involved in the practice of DEI were exposing themselves to liability under state and federal law. Paxton went further to demand that anyone involved in this practice must cease those activities immediately.
Cornyn responded furiously first by criticizing Paxton for using state resources for campaign purposes and accused Paxton of using his office for personal and political gain. He also challenged Paxton to require an “in-kind” contribution from the AG’s office to his Senate campaign.
The opinion is non-binding, and no specifics were given on if the opinion was issued in response to a specific request or legal case.
With six weeks to go before the primary election, this is only a preview of how nasty this race is going to get. Stay tuned…
Abbott Endorses Nate Sheets Over Incumbent Miller
In a very unusual – and stunning development to the incumbent – Gov. Abbott has endorsed challenger Nate Sheets over incumbent Sid Miller in the Republican primary race for Agriculture Commissioner. Miller and Abbott have never been political allies, to say the least. In 2022, Miller publicly said he was considering a primary challenge to Abbott, later backing down and seeking reelection as Agriculture Commissioner.
Miller was criticized from all facets of the political spectrum when he hired his political consultant – Todd Smith – as agency chief of staff last year after Smith pleaded guilty to commercial bribery for selling hemp licenses that are regulated by the Texas Department of Agriculture. The endorsement was announced via a statement from Abbott’s office that in part said, “Texans deserve an Agriculture Commissioner that is focused on agriculture, with zero tolerance for criminality…”
Miller has been critical of both Abbott and Lt. Governor Patrick for what he believes is not prioritizing rural Texans in the priorities of the state’s leadership. Earlier this week at a candidate forum in east Texas, Miller publicly voiced frustration at Abbott and Patrick saying he “hadn’t got him (Abbott) to get on the farm” and “our Lt. Governor is from New England, he’s never been to a farm that I know of.”
In addition to the Abbott endorsement, Sheets – a honey bee farmer – can tout the endorsements of state Senators Charles Perry of Lubbock – chair of the Senate Water and Agriculture Committee, Senator Angela Paxton of McKinney, and Senator Kevin Sparks of Midland.
Republicans Have Cash Lead in Statewide Races
Republican candidates running for statewide office have a substantial lead in the money race over their Democratic counterparts. Starting with the race for Governor. Three-term incumbent Greg Abbott raised $27 million in the last half of 2025 and can boast a war chest of $106 million to take him into 2026. On the Democratic side, state Rep. Gina Hinojosa reported raising slightly over $1 million during the same time period – including a $300,000 personal loan to her campaign – and has about $660,000 cash on hand.
The race for Lt. Governor also has a huge cash difference between the incumbent and Democratic challenger. Incumbent Dan Patrick – also seeking his 4th term – reported raising $3.5 million and has $38 million cash on hand. Likely Democratic nominee state Rep. Vicki Goodwin of Austin reports raising $368,000 and has just $169,000 cash on hand.
In the Republican primary race for state Attorney General, state Senator Mayes Middleton has the lead in money raised, with his campaign haul coming mostly from personal loans from his family’s vast fortune. Middleton reported raising $12 million, with nearly $11 million coming from his own pocket. Note – Middleton comes from a very wealthy family with vast and generational oil and gas interests. Middleton has spent nearly $6 million on TV ads recently and reports having $5 million cash on hand. Congressman Chip Roy raised $4.5 million and reports having $ 4 million cash on hand. The other two Republicans in the race – former Department of Justice attorney Aaron Reitz and state Senator Joan Huffman – report having roughly $2 million cash on hand each.
As in the other races, the Democratic opponents trail badly in the money race. State Senator Nathan Johnson reports having $750,000 cash on hand and former Galveston Mayor Joe Jaworski reports having $250,000 in the bank.
Look for the Republican race to come down to Roy and Middleton. Roy is the more aggressive with the more proven track record of public service, but Middleton has said he will spend whatever is necessary to win the race, which he plans to use as a springboard for future statewide aspirations.
Poll Released in Comptroller’s Race
The race for state Comptroller – the state’s tax collector and bookkeeper – has been overshadowed by the race for US Senate, Governor, and Attorney General. With the resignation of former Comptroller Glenn Hegar in June, the race is wide open for the first time since 2014. After Hegar’s resignation, Gov. Abbott appointed little-known state Senator Kelly Hancock of Fort Worth as acting Comptroller. Hancock is now seeking the job full-time, and is being challenged in the Republican primary by Railroad Commissioner Christi Craddick – in mid-term and does not have to give up that seat – and Dallas car dealer and former state Senator Don Huffines of Dallas.
Huffines leads in the cash race. Like Middleton, he is the beneficiary of a vast family fortune and has loaned $15 million to his campaign from personal funds. Hancock has benefited from the Governor’s fundraising network – since he was appointed by Abbott – and reports just over $7 million cash on hand. Craddick reports raising $1.8 million and has $2.8 million in the bank.
Until this week, the race was somewhat of a mystery as to who was leading, with most pundits giving the nod to Huffines due to his aggressive TV ad buy in the fall. This week, the Huffines campaign released an internal poll showing him with a substantial lead over his two primary rivals. The poll released by the Huffines campaign was conducted by Stratus Intel – a polling and analytics firm – and showed Huffines was the preference of 40% of the likely Republican voters surveyed, with Craddick coming in second at 15%. Acting Comptroller Hancock was the choice of only 7%. However, the race is still wide open, with 32% of the respondents having no preference or undecided.
Look for this to go to a runoff and don’t count Hancock out just yet, as he has shown the ability to raise money and can use the power of incumbency to his advantage.
Religion in Texas Schools
Texas lawmakers in recent sessions have increasingly pursued legislation aimed at expanding the role of religion– Christianity– in public education. In 2023 and 2024, lawmakers advanced multiple bills emphasizing religious expression, including prayer time in public schools, the mandating of chaplains in all public schools, and the placement of religious displays in all public school classrooms. In the 2025 regular session, the Texas Legislature passed Senate Bill 10 which required all public schools in Texas to display the Ten Commandments in classrooms. This law was modeled on similar religious display legislation in other states and was supported by some state leaders as reflecting “historical foundations”.
Supporters argue that the Ten Commandments are part of American legal/moral history, and that the US Supreme Court has become more permissive toward religious expression in public institutions. Opponents argue that mandatory posting of the commandments constitutes state endorsement of religion, excluding non-Christian and non-religious students. Civil right groups, parents, and religious groups – including Christian based organizations – have filed lawsuits in federal court arguing SB10 violates the First Amendment’s Establishment Clause, as well as violated the Supreme Court precedent Stone v. Graham of 1980, which struck down a similar Kentucky law.
Federal district courts have issued injunctions blocking the Texas law, ruling that plaintiffs were likely to succeed on their merits. Texas has appealed those rulings, and the case is now before the US 5th Circuit Court of Appeals, one of the nation’s most conservative appellate courts. Oral arguments were presented to all 17 active judges on the court this week in both the Texas case (Rabbi Nathan v. Alamo Heights Independent School District), as well as a similar challenge to a law passed in Louisiana, the first state to pass a Ten Commandments requirement (this law was blocked by a unanimous decision in a panel of three judges on the 5th Circuit Court).
The Fifth Circuit has also heard arguments on whether the US Supreme Court’s recent rulings related to similar cases (Kennedy v. Beremerton, American Legion v. AHA) have weakened prior bans on classroom religious displays. While the Court has not yet ruled, its decision could set precedent for multiple southern states, with the case playing a very central role in the national debate of the Establishment Clause, prohibiting governments from endorsing or promoting a particular religion.
AG Ken Paxton is defending the Texas law, arguing that the Constitution does not require hostility toward religion, and that historical displays should be evaluated under a “history and tradition” test. He has framed this lawsuit as part of a broader cultural conflict over secularism in public institutions. A Fifth Circuit ruling upholding the bill would likely trigger a Supreme Court review, in which other states like Louisiana and Oklahoma are watching closely. Public school administrators still remain uncertain whether to comply or wait for rulings; this case tests how far states can go in mandating religious content in classrooms.
Speaking more on religion in schools, separate from SB 10, Texas education officials have pursued curriculum-based integration of biblical material rather than overt religious displays. In a draft proposal by the Texas Education Agency (TEA), the proposed framework begins the inclusion of Bible passages and biblical references into reading comprehension and writing at each grade level– showcasing the texts as literature and of historical influence– not as religious instruction. It is set to receive a preliminary vote from the State Board of Education next week, meaning Texas could become a national test case for testing the boundary between cultural literacy and religious endorsement.
TABC Finalizes Hemp Rules
Regarding all of the Hemp business discussed in last week’s update, Governor Abbott directed the Texas Alcoholic Beverage Commission (TABC) to regulate hemp products sold by alcohol-licensed businesses. TABC initially issued emergency rules, and then finalized them this January, ending the yearlong effort to more tightly regulate the products in the state. These new rules apply to 60,000 TABC license holders, including package stores, convenience stores and restaurants.
The finalized rules:
- Ban sales of consumable hemp products to anyone under the age of 21
- Require ID verification
- Apply only to businesses holding alcohol licenses
- Replace “one-strike” license revocation with graduated penalties
The finalized rules do not ban hemp THC products outright, regulate potency limits statewide, or apply to non-TABC-licensed retailers. Opponents of the selling of any hemp products continue to be the most outspoken, arguing that the products need to be banned altogether or at least unattainable to young adults while their brains are still developing.
TABC General Counsel James Person said the agency had entered into a memorandum of understanding with the Department of State Health Services to be the primary agency in charge of enforcement of consumable hemp product regulations. The finalized rules do have some industry & policy implications– creating two different regulatory systems (TABC vs. health agencies) — that leave many hemp retailers exempt from oversight and signal that Texas is treating hemp more like alcohol than marijuana.
1.6 Billion Barrels of New Oil Reserves Discovered In Permian Basin
The Permian Basin continues to be one of the most important oil and gas producing regions in the United States and the world. It spans across West Texas and southeastern New Mexico, producing oil for nearly a century. Improvements in drilling technology over the past 30 years, especially horizontal drilling and hydraulic fracturing, have unlocked vast quantities of oil and natural gas that were previously unattainable and/or uneconomical to obtain. These innovations are what drove the US shale revolution and helped the US become one of the world’s top oil producers. Historically, the Permian Basin has produced tens of billions of barrels of oil and trillions of cubic feet of natural gas.
In a recent January 2026 assessment, the US Geological Survey (USGS) released updated estimates of technically recoverable oil and gas resources found deep beneath the Permian Basin in two shale formations, the Woodford and Barnett shales. The assessment noted that 1.6 billion barrels of oil that could potentially be recovered, and 28.3 trillion cubic feet of natural gas is estimated in the same area. These resources are in deep shale formations, up to about 20,000 feet below the surface, deeper than most traditional Permian oil targets. The finding is not just notable due to the scale, but the location and depth of the shales. That term technically recoverable means that, given current technology and methods, the oil and gas can theoretically be extracted, even if it isn’t currently economical to do so.
At current US consumption rates, the oil would amount to roughly a 10-week supply, and the gas could cover nearly 10 months of consumption if fully produced. Even though US oil production is very high, undiscovered and untapped reserves like these can enhance long-term supply planning & national energy security. For oil and gas companies specifically, new estimates of recoverable resources can influence investment, drilling plans, and long-term strategy. However, despite the headline figures, several hurdles remain, such as (1) economic viability, (2) geological complexity (harder to drill due to deeper shales), and (3) environmental considerations (land use, emissions, and water use).
Texas Grid Demand to Increase in Next Two Years due to Data Centers
Texas is rapidly becoming the nation’s leading hub for data center development, especially facilities supporting AI, cloud computing, and large-scale enterprise digital operations. The boom is expected to significantly increase electricity demand on the state’s power grid over the next several years. Texas offers competitive electricity costs, available land, and a business-friendly regulatory environment, which attracts data center developers. The state already hosts hundreds of data centers, with roughly 387 sites in operation as of 2025. These facilities require massive, always-on electricity to power computing equipment and cooling systems.
As of 2025, data centers in Texas had a maximum power demand of around 8 gigawatts (GW), out of a state grid maximum of about 94 GW. For context purposes: 1 GW can power roughly 700,000 homes for a full year. A recent industry report indicates that increasing data center load demand in Texas could exceed 20 GW by 2028. Data center electric load– especially driven by AI– is projected to grow rapidly nationwide. Large interconnection queues, often dominated by data center requests, are straining planning processes.
Grid Stress Points: The body that manages Texas’s grid, the Electric Reliability Council of Texas (ERCOT), is currently reforming how it evaluates large load interconnection requests. The current system is completely overloaded with new data centers and related project requests. Data centers are facing delays in grid connection times to compete for limited transmission upgrades and capacity. Some developers are now moving toward on-site or co-located power generation to ensure a reliable power supply.
Why This Matters: Increasing this demand from data centers raises concerns about grid stability and capacity planning, especially during peak conditions or when extreme weather hits (think of the Texas February 2021 Winter Storm). This surge highlights the need for coordinated policy, infrastructure upgrades, and efficient grid planning to accommodate big new loads without jeopardizing Texas’s power grid reliability. These data centers will also bring jobs and investment; however, questions are raised about who will be paying for these grid upgrades and how energy costs will be shared among consumers, utilities, and large industrial customers.
Political Notes
The Republican primary race for Texas Attorney General is one of the hottest and most watched of this cycle, with four viable, well-funded candidates vying for the position. Congressman Chip Roy of Dripping Springs – the perceived front-runner – released a poll this week showing him with a substantial lead over his rivals. Roy’s poll – conducted in late December among 800 likely Republican primary voters – shows Roy as the choice of 40% of the respondents. Houston state Senator Joan Huffman came in a distant second at 10%. Galveston area state Senator Mayes Middleton – despite spending million on TV advertising over the last month – garnered only 9%, and former DOJ attorney Aaron Reitz came in at 6%. With over 30% undecided, Roy has a chance to gain the 50% needed to avoid a runoff.
In the Democratic primary for US Senate, state Rep. James Talarico released a poll last week showing him with a 9 point lead over his rival in the primary, Congresswoman Jasmine Crockett. This week, Crockett released her own poll showing her with a 12 point lead over Talarico. Crockett’s poll was done by HIT Strategies, an opinion research polling group based in Washington. HIT strategies polled 1,005 likely Democratic primary voters, with Crockett as the favored candidate of 38% of the respondents compared to 26% for Talarico. 21% remain undecided, leaving room for both candidates to improve their position.
Early voting has started in the runoff for state Senate District 9 in Tarrant County to fill the unexpired term of former Senator Kelly Hancock, who resigned last June to assume the position of acting state Comptroller. Republican Leigh Wambsganss faces off against Democrat Taylor Rehmet for the January 31st election day. Rehmet led the initial round of voting on November 4th, but the district has long been held by the Republicans. Wambsganss has been endorsed by President Trump, Gov. Abbott, and Lt. Governor Dan Patrick in an attempt to keep the seat under GOP control. The winner of the runoff will serve the remainder of the year and the race for the full four-year term – between the same two candidates – will be decided later this year in the November general election.
Early voting has also begun in the runoff for Congressional District 18 in Houston to fill the unexpired term of the late Sylvester Turner who passed away last March. Harris County Attorney Christian Menefee is facing off against former Houston City Councilwoman Amanda Edwards who were the top two vote getters in a large 18-candidate field in the initial November 4th election. Election day for this runoff is January 31st, and this round of voting is for the current boundaries of CD 18 and does not apply to the newly created Congressional district boundaries drawn last summer by the legislature. Both Menefee and Edwards have filed to run in the newly drawn district, with the primary election to be held on the regular primary date of March 3rd. Also in that race is Congressman Al Green, who switched from his current district 9 – redrawn to elect a Republican.
US Senator Ted Cruz made the kind of headlines he did not want this week when he was seen boarding a plane to California – ahead of the winter storm headed to Texas this weekend. The photo of Cruz racked up over 3 million views on X just hours after it was posted, with many of the comments remarking – and criticizing – about when Cruz left town with his family to vacation in Cancun during the devastating winter storm of 2021. In response, Cruz’s office issued a statement saying Cruz was headed to California for a preplanned work related trip, and would return to Texas well before the arrival of the storm.
Former Congressman and 2018 Democratic US Senate nominee Beto O’Rourke said he will not make an endorsement in the race for the 2026 Democratic primary for US Senate between Congresswoman Jasmine Crockett and state Rep. James Talarico. O’Rourke said the candidates are “generational talents” that he believes possess the skills necessary to beat the eventual Republican nominee. O’Rourke said he will use his platform to help with party infrastructure issues that have plagued the Democratic Party for decades and says he is putting together a plan to get more Democrats to the polls. O’Rourke lost to Republican incumbent US Senator Ted Cruz by just 215,000 votes in 2018, and he has remained in the public spotlight since. He tried an ill-fated run for President in 2020 and was soundly defeated by Gov. Abbott in 2022 in the race for Governor.
What’s Next??
The primary election is just 41 days away. The last day to register to vote is February 2nd. Early voting starts February 17th.
With the letter from the chamber leaders requesting interim study requests, we now have a timetable on when interim charges may be issued, which should be shortly after the primary election.
In the meantime, we could have interim hearings on major issues including property taxes, that could not only include discussions on property tax relief, but also how to further regulate and restrict local governments regarding appraisals and procedures for local option elections.
Please – be careful and stay safe and warm this weekend!!