Here’s a quick recap of what happened over the last week:
House Passes Ban on Hemp
The Texas House – following the lead of the Senate – passed legislation this week that bans all THC products which effectively prohibits the sale of any type of hemp products in the state. Due to a loophole in the federal law and a bill passed by the legislature in 2019 to allow the production of hemp for agricultural purposes, the hemp industry has grown enormously over the last few years. There are currently an estimated 9,000 retail outlets that sell some form of hemp and THC products, including vapes, gummies, and drinks.
Lt. Governor Dan Patrick has pushed for the total ban all session, but the original House version proposed to continue to allow the sale of most hemp products, and place strict regulatory restrictions on the industry. But recently, bowing to pressure from Patrick, House members began to signal they would be willing to pass the total ban.
The bill does not affect the state’s compassionate use program or medical use allowance for products with low amounts of THC.
The ban goes into effect on January 1st of 2026. Hemp advocates and those involved in the retail business have vowed to file a lawsuit to stop the ban.
House Passes Bail Reform
Another high priority issue – that if unresolved could lead to a special session – is bail reform. The Texas House this week overwhelmingly approved – with support from both parties – several measures that would give judges significantly more power to deny bail to people accused of certain violent crimes. Several examples were given during the debate of individuals who had been released on bail and gone out to commit heinous crimes with the argument that this package of legislation would stop that in the future.
The main focus of the legislation is to require judges to deny bail to those accused of crimes such as murder, aggravated assault, and sexual assault. Proposed amendments to the state constitution – which require 100 votes in the 150 member House – are needed since the constitution currently only prevents the denial of bail to first time offenders and those defendants accused of capital murder. The proposal cleared the House by a vote of 133-8.
One other proposed constitutional amendment – to deny bail to undocumented persons accused of crimes – did not have the 100 votes needed to pass when it was first brought up this week, due to unanimous opposition from the Democrats. That proposal has been postponed until Monday to see if there is any way to get the Democrats to support the measure.
House Passes Abortion Ban Exception
Legislation to clarify when doctors can perform emergency abortions passed the House this week and is headed to Gov. Abbott for final approval. The legislation standardizes the definition of a medical emergency and clarifies that the physician does not have to wait until the mother is in “imminent” danger to take action regarding the pregnancy. This type of medical emergency is the only exception to the ban on all abortions passed by lawmakers in 2021. There are no exceptions for rape, incest, or fetal abnormalities.
The bill was proposed in response to an outcry from several women who were denied abortions after the ban went into effect and have suffered health consequences. The women in turn sued the state arguing the law was so vague that it caused doctors to be uncertain about when or if they could perform life saving measures when complications arose. Leaders in both legislative chambers deemed the legislation a priority. Gov. Abbott is expected to give final approval to the legislation.
The House this week also passed legislation that bars local governments from using taxpayer dollars to provide any type of logistical support to women that seek abortions out of state where the procedure is legal. The bill is aimed at cities such as Austin and San Antonio that have issued grants to nonprofit groups that help those seeking the procedure with travel and other expenses to assist them in obtaining an abortion outside of Texas.
Agreement Reached on School Finance
Lawmakers this week announced an agreement on an $8.5 billion funding package for Texas public schools that provides a slight increase in the daily student allotment and gives schools more than $1 billion to help pay for fixed costs such as utilities and transportation. The deal also includes over $4 billion to increase teacher pay and $500 million for pay raises for other district employees. Additionally, $100 million is allotted to assist districts in coastal counties with windstorm insurance premiums and deductibles.
This legislation has been a major point of contention between the House and Senate this year. The House had initially proposed an increase in the daily allotment given to school districts for per pupil funding by $395, but the final agreement increases the allotment by $55 per student. The Senate wanted to put the money towards teacher pay raises and the assistance with fixed costs, which is what is in the final agreement.
Now that the agreement has been reached, the Senate gave preliminary approval to the bill last night and should finally pass it later today. With the agreement, there should be no need for a conference committee, and the legislation can head to Gov. Abbott for his approval.
House Passes Property Tax Measures
The Texas House has given their approval to a series of property tax relief measures that will increase the homestead exemption that homeowners can claim from $100,000 to $140,000. A separate proposal raises the additional homestead exemption for the elderly or anyone with disabilities from $10,000 to $60,000. Providing bigger tax breaks has been a priority for Republican leadership this session, continuing their efforts for property tax relief that began in 2023. Business owners will also see tax relief under the proposals approved this week. Under another measure, businesses can exempt up to $125,000 in inventory costs from property taxes, up from the current $2,500 figure.
Over the next two years, lawmakers have allotted $51 billion in the state budget to cover the measures providing the property tax relief, with voters in November having the final say on whether to approve the substantial property tax cuts.
Legislation to Abolish Lottery Commission
A key Texas House committee this week gave approval to a measure passed by the Senate last week that would implement sweeping changes to the operation of the state lottery. The Texas Lottery Commission has been awash in controversy this session since it was revealed the commission staff was complicit in aiding a courier service in “rigging” a lottery jackpot in their favor and for their allowance of lottery tickets to be sold by third-party vendors, in violation of state law.
The new legislation would abolish the current Texas Lottery Commission and transfer its functions – operation of the state lottery and regulation of bingo – to the Texas Department of Licensing and Regulation (TDLR). The legislation would also require a review of the state lottery and make recommendations regarding its continuation. If there no recommendation to continue, the state lottery will be discontinued in August of 2027. The legislation also makes clear that tickets must be sold at retail outlets, and not by phone, through an app, or on an internet site.
The legislation was passed out of committee on Tuesday and will likely be on the House floor for consideration early next week.
Border/immigration News
Federal immigration authorities this week announced they had deported over 500 people and arrested an additional 400 in the Houston area as part of a week-long crackdown. The roundup occurred between May 4th and 10th, by agents from the ICE enforcement field office in Houston. In the announcement, ICE officials said that nearly 300 of the 400 arrested were considered criminal figures, and that several had escaped here, after being convicted in their home countries.
After the announcement from ICE, the Trump administration announced that an additional 64 immigrants had “self-deported” from Houston as part of the administration’s program that offers free flights to immigrants and a $1,000 stipend if they freely return to their home country. The flight from Houston took off Monday with migrants on board from Honduras and Colombia.
Also, the US House has included in their recently approved spending bill a total of $12 billion to reimburse states for their efforts to enforce immigration laws during the years of the Biden administration. Since 2021, Texas has spent an estimated $11 billion on Operation Lone Star, the state initiative that authorized National Guard and State Troopers to be stationed at the border for enforcement purposes. The bill requires the federal Department of Homeland Security to set up an application process for the states to receive grants. This spending bill now goes to the Senate where the fate of this provision is uncertain.
Labor Force Strong in Texas
Texas added 35,900 jobs in April according to a newly released report by the Texas Workforce Commission. This marks the 58th month of jobs growth out of the last 60 months. The overall workforce in the state has grown by nearly 250,000 over the last 12 months. The unemployment rate held steady at 4.1%.
The business service sector saw the biggest gains, adding nearly 11,000 jobs. Private education and health services added 7,400 jobs, while trade, transportation, and utilities added 6,300 jobs. West Texas and the Panhandle have the strongest employment figures. The Midland area has an unemployment rate of only 2.6%, while Amarillo has a rate of 2.7%. The Rio Grande Valley region saw the highest unemployment figures coming in at 5.3%.
Political Notes
Little known Austin Democrat state Rep. Vicki Goodwin announced her longshot bid for Lt. Governor this week in Austin. Incumbent Republican Dan Patrick has already announced he will seek a fourth term for Lt. Governor in 2026. Goodwin, serving in her fourth term representing areas of south and west Austin, criticized the current state leadership for “tearing down our agencies and institutions instead of building trust in our communities.” She said she wants to “build a Texas that works for all of us.” Goodwin – a real estate broker — has no major legislative accomplishments and is not known at all outside of Travis County. To say this is an uphill battle is an understatement, as she is challenging a widely popular incumbent Lt. Governor with a campaign war chest exceeding $30 million. Goodwin has about $150,000 cash on hand to start the campaign.
And in related news, Goodwin’s chief of staff Pooja Sethi has declared her intention to seek Goodwin’s House seat in 2026. Sethi has been active in politics in the Austin area and serves as the Travis County Democratic Party Chair.
State Rep. Steve Toth, a Republican from The Woodlands, said on X this week that he will have a major announcement on his political future on July 1st. Toth said he “looks forward to the chance to represent Texas in DC”, which confirms a rumor that he is preparing to challenge incumbent Republican Congressman Dan Crenshaw.
Flatonia City Councilman Dennis Geesaman announced this week he will challenge second term incumbent state Rep. Stan Kitzman in next year’s Republican primary. Kitzman is from Pattison, west of Houston, and represents the solidly red district that covers rural areas from La Grange to Prairie View, and south to Wharton and El Campo.
Democratic Harris County Judge Lina Hidalgo has drawn her first challenger for the 2026 election, albeit from the Republican side. Piney Point Village Mayor Aliza Dutt announced this week she will seek the Republican nomination for Harris County Judge next year. Dutt was first elected mayor of Piney Point – a small enclave on the west side between Loop 610 and the Beltway – in 2024 and said she will make public safety and fiscal responsibility the cornerstones of her campaign. Hidalgo – who has not publicly announced her intention to seek reelection to a third term – has not drawn a challenger yet from the Democratic side.
What’s Next??
The House and Senate are both in session today with lengthy calendars. With the session ending soon, both chambers will work over the holiday weekend. The House will convene at noon tomorrow and 2PM on Sunday. The Senate will convene at 5PM Sunday evening.
For the most part, committee hearings have concluded in both chambers. But there may be a few hearings on Saturday to consider a final agenda of bills. This Wednesday, May 28th is the deadline for both chambers to pass legislation. After Wednesday, they can only consider amendments placed on bills in the opposite chamber and adopt conference committee reports.
There are only 10 days left in the regular session. Sine Die is Monday, June 2nd.