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Members,
Last night, Governor Greg Abbott laid out a bold vision for Texas’ future in his 2025 State of the State Address, identifying key priorities for the legislative session. He declared seven emergency items, calling on lawmakers to take immediate action on the following:
• Property Tax Relief
• Water Infrastructure Funding
• Teacher Pay
• Expanding Career Training
• School Choice
• Bail Reform
• Texas Cyber Command
For the Texas business community, several of these priorities stand out as critical to our state’s continued economic leadership. Property tax relief was at the top of the Governor's list and he asked for at least $10 billion in additional relief and stronger protections to ensure local governments don’t chip away at the progress already made. At TAB, we believe lowering tax burdens on citizens and business alike is key to keeping Texas the best state for job creation and investment.
Water infrastructure and power generation remain critical priorities for a growing Texas. Governor Abbott has declared historic investments in water projects an emergency item to ensure long-term supply and economic stability. TAB has been a strong advocate for securing this funding, working closely with Texas2036, the Greater Houston Partnership, and other partners to build a broad coalition in support of this effort. If you’d like to learn more or get involved, please contact gabriela@txbiz.org.
Reliable infrastructure—both in water and energy—is the foundation of Texas’ continued economic expansion. TAB supports an all-of-the-above-and-below approach to energy, and we were encouraged by the Governor’s commitment that "Texas must lead a nuclear energy renaissance." Expanding power generation, including next-generation nuclear, will be essential to meeting the needs of our state’s rapidly growing population and business community.
Workforce development is also a top priority. By declaring career training an emergency item, Governor Abbott is making it clear that Texas must equip students with the skills needed for high-demand industries. Investing in high school workforce programs will strengthen our talent pipeline and ensure Texas remains the best place for companies to find and develop talent.
Finally, cybersecurity has emerged as a major economic concern, and the Governor made the creation of Texas Cyber Command another emergency item to protect businesses, government systems, and critical infrastructure from cyber threats. As Texas continues to lead in innovation and technology, ensuring the security of our data and operations is paramount.
Beyond the emergency items, Governor Abbott reinforced his commitment to supporting Texas’ small businesses through the Small Business Freedom Council, which I am honored to co-chair with Jeff Burdett of NFIB. Ensuring that small businesses remain the backbone of our economy means reducing bureaucratic hurdles, cutting unnecessary regulations, and championing pro-business policies.
Governor Abbott also highlighted the momentum behind the Texas Space Commission, which was established last session. Texas has long been a leader in aerospace and space exploration, and this session presents an opportunity to build on that foundation and solidify Texas as the premier destination for space industry investment and innovation.
At TAB, we will be working closely with lawmakers this session to advocate for policies that support a pro-business, pro-growth environment. We will keep you informed on legislative developments and opportunities for engagement as these critical issues move forward.
On that note, I’d like to remind everyone that our Legislative Breakfast Series kicks off this Wednesday with Representative Jared Patterson. Join us at 7:30 AM for coffee and breakfast tacos, followed by remarks from Rep. Patterson at 8:00 AM. Additional details on the series can be found below.
Finally, I'd like to briefly address the rapidly evolving situation with North American trade. I strongly believe that USMCA, negotiated by President Trump, is the best trade deal ever. This landmark agreement has fueled record-breaking trade & job growth in Texas. In 2023 alone, Texas exported over $491B in goods—Mexico & Canada accounted for over half.
Tariffs threaten this success. Instead of disrupting trade, we should double down on USMCA’s benefits—modernizing infrastructure, securing supply chains & keeping Texas as North America’s trade powerhouse. We are encouraged by the announcement of the agreement between President Trump and Mexican President Sheinbaum today, but believe we must remain vigilant.
We will continue monitoring the situation closely and remain in constant communication with our partners. If you would like to get more involved in our "Texas Leads Trade" effort to preserve the incredible economic benefits of USMCA, please contact jmuzquiz@txbiz.org.
As always, please don’t hesitate to reach out to me or the team if we can be of any assistance. We appreciate your support and look forward to a successful legislative session for the Texas business community.
Best,
Glenn Hamer
President & CEO
Texas Association of Business