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89th Texas Legislative Session

The 89th Texas Legislature concluded its 140-day regular session on Monday, June 2. With more than 9,000 bills filed, this session brought forward major legislative action, including landmark investments in public education, workforce development, and long-term water infrastructure.

 

As the leading voice for Houston’s business community, the Greater Houston Partnership worked closely with state lawmakers to advance priorities that reflect the scale and impact of our 12-county region, home to more than 7.7 million residents and responsible for nearly one-quarter of the state’s GDP.

 

In addition to the Partnership’s Executive Priorities, legislators addressed a wide range of issues critical to our region and the state. Below is a selection of key outcomes from the session. This is not an exhaustive list. For full bill tracking and analysis, visit the Texas Legislature Online.
Texas Legislature Online.

View Our End of Session Recap

water infrastructure

Water Infrastructure

House Joint Resolution 7    
STATUS: Filed with the Secretary of State, On the November 4 constitutional election ballot    
This resolution proposes a constitutional amendment to authorize $1 billion per year for the next 20 years for the Texas Water Fund. Texas voters will decide this November whether to allow the state to dedicate available funding for projects that increase the water supply and address aging infrastructure. Texas has similar dedicated funding for transportation projects and the state's rainy day savings account. The Partnership supports the final approval of this constitutional amendment to secure our region's water needs. 

Senate Bill 7    
STATUS: Sent to the Governor    
This is the omnibus water spending bill that expands the authority for the Texas Water Fund and outlines a path forward to address our state's water supply and infrastructure needs. This bill is closely tied to House Joint Resolution 7, which will ask Texas voters in November to approve dedicating $1 billion per year over the next 20 years to fund water projects. The goal is to allocate 50% of the funding for projects that create a new water supply, and the remainder will be assigned to other eligible projects, including flood infrastructure, repairing leaky and broken pipes, and other related initiatives. This bill was critical for the City of Houston and the region to address the ongoing needs related to growth and business expansion.

Workforce Development

House Bill 11     
STATUS: Signed by the Governor, Effective Immediately     
This new law immediately expands occupational license reciprocity agreements, allowing more out-of-state professionals to work in Texas. This critical bill expands the workforce talent pool and recruitment for the best and brightest to our state. 

House Bill 20     
STATUS: Sent to the Governor     
This bill establishes the Applied Sciences Pathway program, which allows high school students in grades 11 and 12 to simultaneously earn their diplomas and workforce certificates through partnerships between school districts or charter schools and institutions of higher education. The program focuses on high-wage, high-growth technical fields and counts student participation toward full-time attendance requirements. It also permits limited course substitutions with career and technical education (CTE) credits. 

House Bill 120
STATUS: Sent to the Governor    
This bill enacts wide-ranging reforms to strengthen Texas's college and career readiness efforts for public school students. The bill requires the Texas Education Agency (TEA) to set a statewide career readiness goal, publish postsecondary outcomes by campus, and support data-driven local planning. School districts must adopt detailed annual goals for student credential attainment and long-term consequences, post public reports, and assign staff to track progress.

The bill also expands dual credit access for recent high school graduates in P-TECH and R-PEP programs, boosts funding for CTE programs and certifications, and allows districts to use existing funds to provide post-graduation advising. It creates a new $50,000 Military Pathway Grant for JROTC programs, raises caps on P-TECH and R-PEP funding, and enhances certification reimbursement limits. The accountability system has been updated to tie industry certifications to postsecondary wage and job outcomes, and it sets new rules for revising performance standards.

Senate Bill 1786    
STATUS: Signed by the Governor. See the bill for rolling effective dates.
This bill enhances the way Texas funds and coordinates career and technical education (CTE) across high schools, colleges, and workforce programs. It requires the Texas Education Agency, the Higher Education Coordinating Board, and the Workforce Commission to work more closely together to streamline grants and better align training programs with high-demand, well-paying jobs. SB 1786 strengthens data reporting from employers and launches a statewide labor market assessment to help educators tailor programs to real workforce needs. It also ensures more dual credit access through the FAST program, particularly for disadvantaged students, and provides the Coordinating Board with the flexibility to quickly adopt rules in response to federal aid and funding changes. The bill expands what counts as a “credential of value”—degrees and certificates that lead to good returns for students—and updates funding formulas for junior colleges to reflect those outcomes.

construction

Public School Funding & Early Childhood Education

House Bill 2    
STATUS: Sent to the Governor    
This is the omnibus school finance bill that added $8.5 billion in new programmatic funding for public education. The bill includes $4.2 billion in teacher pay raises, bonuses, and retention allotments, as well as support staff. The bill also includes new funding for special education, state aid for insurance costs, expanded workforce data reports, and college and career preparation. Locally, Region IV schools are expected to receive more than $1 billion in combined funding under the new formulas. 

House Bill 117    
STATUS: Sent to the Governor    
This bill establishes a Governor’s Task Force to enhance the administration of early childhood education programs in Texas. The task force will comprise leaders from state agencies and experts in early learning, and will examine ways to enhance program efficiency, better alignment, and accessibility for families. It must submit policy and budget recommendations by December 2026 and will be dissolved in 2027.

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Public Policy Updates

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Public Policy

Houston’s Impact in Austin: Legislative Wins from the 89th Session

6/2/25
As the 89th Texas Legislative Session concludes, several key policy measures aligned with the Greater Houston Partnership’s priorities were advanced. With 1 in 4 Texas jobs based in the Houston metro, a nearly $650+ billion regional GDP, and more than 1.2 million students enrolled in regional public education institutions, Houston plays an outsized role in shaping the future of our state. Legislative decisions made in Austin ripple through our 12-county region impacting infrastructure, education, innovation and the workforce that powers Texas. Guided by our Executive Priorities, Water Infrastructure, Education, and Workforce Development, and powered by our elected officials, members and partners, the Partnership worked throughout the session to advocate for policies that will strengthen the greater Houston region and the state. Executive Priority Wins Water Infrastructure A generational investment in Texas’ water future, anchored by a proposed constitutional amendment to dedicate $1 billion annually over the next 20 years, was one of the session’s biggest wins. $265 million+ secured for Houston-area water and flood mitigation projects, including $100 million for the Lynchburg Pump Station. The creation of a new Lake Houston Dredging and Maintenance District to fund ongoing operations A dedicated fund for the Gulf Coast Protection District to continue delivering $550 million for projects to make the coastline and ship channel more resilient Public Education This session delivered the largest infusion of new programmatic funding in more than a decade.  $195 million+ for Houston ISD under a new school finance formula and pay raises for Texas teachers. Higher Education Houston’s institutions saw record-breaking support in recognition of their role in talent development, research, and medical innovation. $2.1 billion+ for Houston area four-year colleges and universities.  Workforce Development With a growing emphasis on applied learning and employer-aligned training, Texas made strong investments in talent development. HB 120 + HB 20 + SB 1786 expanded access to school-to-career programs and career-focused science pathways, and continued the work at community and junior colleges to deliver more credentials of value Investing in What’s Next The Partnership also supported forward-looking policies that position Houston and Texas for long-term growth: $3 billion to launch the Dementia Prevention and Research Institute (DRPIT). $715 million in funding for nuclear energy, semiconductors, and emerging industries. These wins were only possible through deep collaboration, among our coalition partners, elected officials, business and community leaders, and the engaged members of the Partnership. Together, we’ve demonstrated how a united voice for Houston helps drive results that benefit all Texans. We are grateful for the leadership of our regional delegation and statewide champions who delivered these critical investments. Click here to download the 89th Texas Legislative Session Summary. For a full rundown of bills the Partnership tracked throughout session, click here. 
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Public Policy

Texas Legislature Greenlights $3B Initiative to Advance Dementia Research

5/29/25
Texas lawmakers have passed legislation that could position the state as a global leader in dementia prevention and research.   The passage of Senate Bill 5 establishes the Dementia Prevention and Research Institute of Texas (DPRIT), a $3 billion initiative that aims to accelerate groundbreaking research into dementia and related brain disorders such as Parkinson’s and Alzheimer’s, fuel medical innovation and improve health outcomes for Texas residents.  However, the release of DPRIT funding depends on voter approval of Senate Joint Resolution 3 on the Nov. 4 ballot. The constitutional proposition would authorize the state to spend $3 billion over the next decade, with up to $300 million awarded each year through grant funding.   This investment comes at a critical time, as Texas faces the growing health and economic impact of brain disorders. According to the Texas Dementia Initiative, more than 400,000 Texans currently suffer from Alzheimer’s disease, and that number is projected to exceed 500,000 by 2030 as the state’s population continues to age. The state also ranks second nationally in Alzheimer’s deaths.  At the same time, there is a significant opportunity to turn this challenge into economic growth. According to a McKinsey Health Institute analysis, strategic investment in brain health initiatives could generate up to $260 billion in local GDP impact.  A Strategic Opportunity for Houston  Modeled after the Cancer Prevention and Research Institute of Texas (CPRIT), which transformed the state into a hub for cancer research, DPRIT holds the same potential to elevate Texas—particularly Houston—as a hub for brain health research. Since its launch in 2009, CPRIT has awarded more than $3.8 billion in grants, with nearly 40 percent directed to Houston-based institutions. With the Texas Medical Center, world-class research institutions and a growing life sciences ecosystem, Houston is already an established leader in health care research and treatment. DPRIT funding could accelerate that momentum, attracting researchers, startups and companies to the region.  The Greater Houston Partnership has actively advocated for DPRIT, recognizing its potential to boost public health and regional economic growth. Brain health was also a key priority for former Partnership Chair and Lime Rock CEO Eric Mullins during his tenure.   “Brain capital will be an essential currency as we prepare workers to thrive and evolve with the technologies, societal shifts and economic uncertainties of the coming decades,” Mullins said in a statement. “The steps that Houston is taking to invest in brain health will unlock capital for R&D, model best practices in employee well-being and prepare our workforce to compete on the global stage.”  Other Houston-based organizations are also focused on exploring and advancing the so-called “brain economy,” including the Center for Houston’s Future.   Looking Ahead  Lawmakers are close to finalizing a new tax incentive program that would bolster research and development statewide. If signed into law, Senate Bill 2206 would further strengthen innovation in Houston’s medical community and beyond.  Learn more about the Partnership’s public policy initiatives.  
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