Skip to main content

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.

education school
Budget
Economic Development
Energy
Environment
General Business
Health
Higher Education
Investment
Public Education
Regulatory Reform
Taxes
Technology
Tort Reform
Transportation
Workforce

Public Policy Updates

Related News

Public Policy

Powering Progress: How Energy Policy Shapes Houston’s Future

6/12/25
As the global energy landscape continues to evolve, Houston remains at the center of the conversation. The Greater Houston Partnership’s Public Policy Energy Advisory Committee supporting efforts to ensure our region stays competitive, sustainable, and future-ready. Chaired by Jonathan Cox, Global Co-Head of Natural Resources Investment Banking at JPMorgan Chase, the committee convenes key leaders from across the sector to shape energy policy and drive innovation at the local, state, and federal levels. “Everyone has gotten the memo around inbound U.S. investment being critically important,” said Cox. “There’s a tremendous enthusiasm for putting capital, jobs, and infrastructure in the U.S., especially in Texas.” What the Committee is Focused On In 2025, the Energy Advisory Committee is focused on strategies to maintain Houston’s energy leadership while navigating a changing policy and investment environment. Key priorities include: Permitting Reform & Infrastructure Advocacy: Supporting clearer permitting timelines and reforms at both federal and state levels to accelerate CCS, LNG, and nuclear projects. Clean Energy & Technology: Promoting policies that advance emerging technologies like small modular nuclear reactors (SMRs), carbon capture, and clean hydrogen. Electric Grid Modernization: Advocating for reliability, affordability, and long-term energy planning to meet growing demand in the Houston region. Federal & State Policy Alignment: Tracking shifts from sustainability to reliability in federal priorities, while supporting Texas legislation like H.B. 14, which allocates $2B toward advanced nuclear supply chain development. Energy Workforce & R&D: Ensuring Houston has the talent pipeline and R&D infrastructure to remain competitive as the energy sector transforms. “The places where tomorrow’s energy breakthroughs will be invented may not be here unless we act,” Cox noted. “We have to be at the forefront of energy R&D.” What We’re Hearing from Members During the Q2 committee meeting, a roundtable discussion revealed key business concerns and opportunities. These included: Ensuring policy consistency and fiscal incentives to reduce investment uncertainty Advancing clean energy innovation while recognizing the essential role of traditional energy in driving low-carbon solutions Elevating Houston’s role in domestic and international energy investment Increasing collaboration across government, academia, and industry “We’re in a world where we need more energy—not less,” said Cox. “The idea that we can subtract our way to energy transition just doesn’t work technologically.” Looking Ahead: A Platform for Progress The Partnership will continue engaging members to shape the advocacy strategy. Whether you work in oil and gas, renewables, infrastructure, or emerging tech, this committee is your platform to help define the future of energy in Houston—and beyond. “Houston has the talent, infrastructure, and industry depth to lead the next chapter of the global energy story,” Cox said. “But we must stay ahead by investing in innovation, aligning on policy, and preparing our workforce for what’s next.” Ready to get involved? Partnership members are essential to shaping policy that powers Houston’s growth. Contact the member engagement team at member.engagement@houston.org to join the Energy Advisory Committee.
Read More
Education

School Finance Reform Adds $1 billion-plus to Houston Area Schools

6/11/25
This legislative session, the Governor and state lawmakers prioritized increasing funding for Texas public schools, resulting in a historic $8.5 billion in new funding. The centerpiece is House Bill 2 (HB 2), a 231-page law signed by Governor Greg Abbott on June 4, accounting for $8.1 billion, including $4.2 billion for teacher pay, incentives, and retention.  Houston Area Funding Increases  Under the new formulas, Region IV schools are projected to receive over $1 billion under HB 2. Here are the estimates for the five largest districts in the region:  Houston ISD: $195M  Cypress-Fairbanks ISD: $126M  Katy ISD: $103M  Fort Bend ISD: $80M  Aldine ISD: $61M  Click here to search for individual districts to explore funding changes under HB 2.  Why This Matters for Houston’s Future  A strong public education system is foundational to Houston’s economic future. With more than 1.3 million students enrolled in the region’s schools, today’s learners are tomorrow’s workforce. Ensuring students are equipped with the knowledge, skills, and credentials needed to succeed in college, careers, or military service is essential to meeting the talent demands of our growing economy. Investments like House Bill 2 directly support Houston’s competitiveness by helping develop the educators and systems needed to prepare a workforce that can power the region’s continued growth.  Navigating the Bill  Rather than increasing the basic allotment, which is a pool of funds that can be spent on various eligible programs, lawmakers opted for targeted investments in specific programs, including teacher pay. Here are some of the key provisions in each article.  Article 1: Teacher Compensation & Incentives  Expands teacher designation levels  Boosts performance-based pay and retention bonuses  Establishes required liability insurance and prioritizes high-need campuses  Article 2: Educator Preparation   Limits the use of uncertified teachers  Creates new certification pathways and incentives  Launches state-funded training and mentorship pipelines  Article 3: Educator Rights  Eases job transfer rules and protects pay during unpaid leave  Waives certification fees for high-need subjects  Improves grievance processes and strengthens classroom authority  Article 4: Special Education  Updates funding and terminology for special needs services  Supports visually and hearing-impaired students  Enhances regional training and service delivery  Article 5: Early Childhood Education   Mandates statewide reading/math diagnostics for kindergarten through third grade  Funds extended learning time, pre-K partnerships, and parent-led tutoring  Article 6: College, Career & Military Readiness  Sets new performance goals and funding for dual credit, credentials, and military training  Expands support for career-focused programs like P-TECH and R-PEP  Article 7: School Finance Reforms   Increases aid for small districts, charters, bilingual programs, and school safety  Adds new funding for coastal school operations and insurance  Improves transparency and empowers the Commissioner to fix formula issues  HB 2 represents a sweeping overhaul of how Texas funds, supports, and prepares its educators and students, aiming for stronger outcomes from pre-K through high school and beyond. Click here for a one-pager explaining more about the bill from our partners at Texas 2036. 
Read More

Become a Member Today

Interested in joining the Partnership? Take the next step and learn how you can make an impact on Houston.

Get in touch with our team to:

  • Learn more about the Partnership's policy priorities
  • Get involved in a policy committee and meet industry peers 
  • Help shape the Partnership's policy initiatives
Taylor Landin
Executive Vice President and Chief Policy Officer
Public Policy
E
tlandin@houston.org
P
713-844-3624
Looking for the rest of our team?
Partnership Staff
Executive Partners