AUSTIN — From headline-makers to quiet fixes, the Texas Legislature made defining choices on politics, priorities and people in 2025. Here’s what stood out:
Homestead relief goes to voters — and passes
Action: Lawmakers put property tax cuts and higher homestead exemptions on the ballot last month, and voters overwhelmingly approved the changes. That includes increasing the homestead exemption for all homeowners to $140,000 from $100,000, and giving seniors 65 and older an additional $60,000 on top of the maximum homestead exemption.
Outcome: School property tax bills are lower for homeowners, with limited relief for some businesses, and the provisions are now embedded in the Texas Constitution. But rising appraisals across much of the state have blunted the savings for many households, offsetting part of the benefit from the larger exemption.
Giant public school funding package
Action: Legislators passed and Gov. Greg Abbott signed an $8.5 billion school funding plan for teacher and support staff pay raises, operations, special ed and more.
Political Points
Outcome: Public school districts get new dollars to stabilize budgets and staff classrooms. Much of the money is tied to targeted allotments, not flexible formula funding, leaving concerns that rising costs still outpace per-student dollars.
Private school vouchers approved
Action: Lawmakers authorized a statewide education savings account program with up to $1 billion in initial funding and a potential multiyear expansion.
Outcome: The program marks one of the largest school-choice expansions in the U.S. Eligible families can use public funds for private tuition or alternative schooling. Critics warn the program could siphon students and dollars from public schools, particularly in rural areas where private options are limited.
State lottery overhaul
Action: The Legislature passed a measure abolishing the Texas Lottery Commission and transferring lottery oversight to the Department of Licensing and Regulation, while banning online ticket sales and courier services.
Outcome: The lottery’s governance model shifts dramatically, tightening controls and signaling the state’s intent to curb abuses — with ripple effects for revenue, school funding and how Texans buy tickets.
Flood preparedness
Action: After the Camp Mystic floods along the Guadalupe River, lawmakers approved additional funding and directives to strengthen flood warning systems, expand river and rainfall gauges and accelerate updates to flood-risk mapping in high-hazard corridors such as the Hill Country.
Outcome: The response improves alerts and mapping, though officials involved in flood preparedness say key questions remain about land-use rules, camp safety and how prevention efforts will be funded.
What’s ahead in 2026
A high-stakes election year looms, with all 181 legislative seats on the ballot and control of key committees at stake. Voters will also choose new statewide leaders, including a U.S. Senate race that’s drawing national attention. Meanwhile, the fight over Texas’ redrawn congressional maps alter state politics for the rest of the decade.
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