With the conclusion of the 2025 Legislative Session on June 2, Opportunity Austin is pleased to celebrate several key wins and is already looking ahead to how recent policy decisions will shape economic development and business activity across the region. Planning is now underway for the interim period leading up to the next legislative session in 2027, with a focus on proactive and strategic advocacy. 

As with any session, not all priority items made it to the governor’s desk. However, several significant pieces of legislation did pass and are expected to positively impact our region’s economy. Overall, Texas—and the Austin region in particular—remains in a strong position for continued economic growth. 

Below is a summary of Opportunity Austin’s top legislative priorities. In the coming weeks, we will be speaking at several legislative recap events across the region to further discuss the outcomes of the session. A full summary of additional legislation will also be provided within the next few weeks on the website. 

Investors and regional partners with questions about specific bills or interest in a recap event are encouraged to contact us for more information.

Top Five Legislative Priorities 

• ❌ JETI Program Improvement –Several bills were filed, each with a different strategy for improving the JETI program. Opportunity Austin supported all these bills, but HB 105 and HB 4022 were the most comprehensive bills and occupied most of OA’s effort. Ultimately, none of the bills passed in both chambers. Between now and the next session, OA will continue to work on identifying and quantifying the need for making these or other changes to the JETI program.

• ✅ Chapter 380 and 381 – The most damaging bill to Chapters 380 and 381, SB 878, passed the Senate but failed to get a House hearing. Other bills targeting Chapter 380—such as those aiming to limit support for renewable energy projects—also failed. OA’s collaboration with key stakeholders was instrumental in protecting these critical local economic development tools.

• ✅ R&D Tax Credit – SB 2206 was sent to the governor with overwhelming support, but the process wasn’t always easy. After having a Senate Committee hearing on April 9th, the full Senate didn’t vote on the bill until April 28th and then the bill waited a couple more weeks to get a House hearing. Stakeholders watched anxiously as House deadlines approached, hoping the bill would come up for a vote. With a handful of hours left, the House passed the bill before the deadlines, leaving the governor’s signature as the remaining step in reauthorizing the tax credit program. The legislation promotes research and development investment in Texas by giving companies of all sizes a credit against their franchise tax obligations for their qualifying R&D expenditures.

• Infrastructure Investment –  The state passed landmark legislation for infrastructure to address the state’s growth and sustainability. From the creation of a permanent water infrastructure fund to advances in nuclear energy, lawmakers took bold steps to secure our state’s long-term resilience and competitiveness.
  • ❌ Mobility – Unfortunately, Opportunity Austin’s primary transportation infrastructure item, the SH 130 east west connectivity enhancement, stalled in the Senate again as it did last session. However, OA, in addition to several regional partners, played an important role in facilitating high-level conversations regarding this important issue and anticipates working through the interim with key legislative offices on a path forward for next session.

✅ Water – The legislature passed HJR 7, which amends the Texas Constitution to dedicate the first $1 billion of the state’s sales tax revenue to the Texas Water Fund every year from 2027 until 2047. Those funds are specifically for new water supply projects, primarily ones where the original water source is brackish water. The legislature also passed SB7, which makes administrative changes to how the Water Board allocates its funding streams between programs, adds new initiatives like ASR projects to the list of acceptable uses of the Water Fund, creates an interim study for incorporating wastewater planning into the state water planning process, and more.  

✅ Electric – Of the 44 bills passed relating to electric power, probably the most impactful and controversial is SB 6, which regulates how large loads interact with the ERCOT grid. The bill establishes various pricing requirements for power usage, transmission costs, connection costs, and more for large load users. It also provides ERCOT with an emergency disconnect during critical events. OA did not engage on this issue as we are not the primary stakeholders, but as growth continues, power is a critical part of needed infrastructure. Also of note is the additional $5 billion appropriation in SB 1 to the Texas Energy Fund.  

• ❌ State Investment Fund  – The bill was voted out of Senate Committee on May 25 with its investment threshold reduced from $5 billion to $500 million, but it ultimately died without reaching the Senate floor. It became a late-session priority for Opportunity Austin due to its alignment with a key 5.0 Strategic Plan initiative. While it’s disappointing to fall short, the bill made meaningful progress given the timing. Opportunity Austin’s involvement—alongside OA investor Rajiv Bala—was instrumental, and we look forward to continuing this work during the interim.

• ✅ Outcomes-Based Workforce and Education Policies – Building on last session’s momentum around outcomes-based funding models, the legislature has passed several notable bills. 
  • SB 1786 has been signed by Gov. Abbott, expanding dual-credit and postsecondary credential pathways for high-demand careers, and improving alignment between TEA, TWC, and THECB. 
  • HB 120 mandates school districts to set performance targets and provides funding for CTE facilities/equipment, J-ROTC, and P-TECH programs.
  • HB 20 expands career and technical education applied science pathways in sectors like IT/cybersecurity, healthcare, and advanced manufacturing. 
  • SB 569 has been signed by Gov. Abbott and will implement Governor Abbott’s Texas Virtual School Commission Recommendations to modernize virtual education, improve educator training, and expand student work-based learning opportunities.
    
  • SJR 59 is a constitutional amendment creating an endowment fund for TSTC. The structure of the fund will guarantee $52 million annually in capital funding for TSTC campuses.
    
  • HB 2851 and HB 2856, both by Rep. Donna Howard, aim to improve nursing and other health and life sciences career training and education in Texas by creating a single, statewide nursing school application, and making recommendations on implementing a statewide system for coordinating clinical training placements.

News

Austin City Council votes to spend $104M on foundations of caps and stitches: The Austin City Council approved funding for the design and construction of the infrastructure needed to eventually support “caps” and “stitches” over the I-35 renovation.  

Shape Austin's 2026 Bond: You have an opportunity to provide feedback to the city on the bond package they will propose in the 2026 election. It takes a few minutes to fill out this survey and share your views on what the city’s priorities should be. 

Possible Cuts to Pell Grants: Stakeholders in the Austin region are concerned about possible cuts to the Pell grant program and the effects it could have on key workforce programs and partners in the region. 

Bill Tracker 

You can view a list of notable bills OA tracked or supported this session. The status of each bill is reflected in the tracking document. If the “Latest Entry” field says “Enrolled” that means the bills was fully passed and becomes law. Anything else died.  If you have questions about the intent, outcomes, or potential implications of any legislation, we’re happy to discuss. A few highlights include:

• ✅ Workforce – Several OA supported bills passed this session, including SB 1786, HB 120, and HB 20. The legislature also passed SB 1535, creating a workforce training program for nuclear energy career pathways.   
  
  
• ✅ Film Incentives – SB 22 approved $300 million every two years through 2035 ($1.5 billion in total) in film incentives funding while making significant changes to what types of projects can qualify, the amount of funding a project is eligible for, and the criteria for being eligible. The bill is waiting for the governor’s signature.  
  
  
• ❌ Creation of the Texas Technology and Innovation Program – HB 1268 and SB 209 – Neither bill made it out of the Senate Committee on Economic Development.  
  
  
• ✅ Creation of the Texas Advanced Nuclear Energy Program - HB 14 was sent to the governor, creating the Texas Advanced Nuclear Energy Office within the office of the governor but did not appropriate any funding for it. SB 1535 directed the Workforce Commission to create a workforce development program focused on building a talent pipeline for advanced nuclear energy careers.
  
  
• ✅ Creation of the Texas Cyber Command – HB 150 – was sent to the governor after the House concurred in Senate amendments. 
  
  
• ✅ Creation of the Dementia Prevention and Research Institute – SB 5 / SJR 3 - OA previously registered their support for these bills. SB 5 has been signed by the governor and SJR was sent to the Secretary of State for inclusion in the November 2025 Constitutional Amendment Election.  

OA Policy and Advocacy Resources 

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