A spate of new laws took effect Jan. 1, The Dallas Morning News reported.
Here’s a summary of the most notable new laws now in force:
• County sheriff’s offices are now required to cooperate with U.S. Immigration and Customs Enforcement after the passage of Senate Bill 8. Local jail staff are authorized to verify the immigration status of inmates and to honor certain federal immigration warrants. A grant program was created by the state to help sheriffs cover training and implementation costs related to the new law.
• Eviction proceedings involving unauthorized occupants must be held in court from 10 to 21 days of filing. Also, the new law limits legal delays occupants may take to avoid eviction.
• With the rapid expansion of artificial-intelligence systems into many aspects of daily lives, House Bill 149 established a statewide framework for regulating AI and providing transparency. Companies using AI must notify people when they are interacting with an AI system. The law also created a state advisory group to oversee the implementation of oversight and compliance. Penalties can be assessed for violations of the new requirements.
• The business inventory tax exemption has been raised to $125,000, cutting property taxes for small businesses that maintain stock. The previous exemption was $2,500.
Texas small businesses optimistic about 2026
Most Texas small-business owners are optimistic about 2026 and expect their businesses to grow, according to a survey conducted by Comerica Bank of roughly 1,000 small-business owners, the Houston Chronicle reported.
Nearly 80% expect sales growth this year, and about 70% plan to make capital investments, the survey indicated.
“While the headlines about the economy can be disconcerting, small-business owners are telling us that they see much brighter prospects for the part of the economy that touches their business directly,” said Comerica Bank chief economist Bill Adams. “That’s an encouraging sign that the underlying trend for small business is still solid.”
Despite the uncertainty surrounding the impact of tariffs and a slowing of growth in the national economy, Adams said the recent interest rate cut by the Federal Reserve and lower effective tax rates for businesses under the major financial bill passed last summer are encouraging to small-business owners.
The state’s gross domestic product grew at an annual rate of 6.8% in the second quarter of 2025, compared to 3.8% nationally.
Texas student loan borrowers in default could see wages withheld Beginning this month, the Trump administration has threatened to withhold wages from borrowers who have not made a student loan payment in the past nine months or longer, the San Antonio Express- News reported.
An estimated $131.9 billion in outstanding student loans are owed by Texans, according to the Education Data Initiative.
The federal Department of Education confirmed recently that it could begin seizing up to 15% of a person’s disposable income from his or her employer until the defaulted loan is paid in full or removed from default.
Nearly 5.5 million borrowers are currently in default. The pandemic-era pause on repayments was ended by the Trump administration last year.
Critics of the move worry about the effect of garnishing income in the current financial climate, the Express-News reported.
“At a time when families across the country are struggling with stagnant wages and an affordability crisis, this administration’s decision to garnish wages from defaulted student loan borrowers is cruel, unnecessary and irresponsible,” Persis Yu, director of Protect Borrowers, an advocacy group, wrote in a statement.
Texas to get $281 million in federal funds for rural health care Texas will receive the largest portion of the first rollout of the $50 billion allocated under the Rural Transformation Program, The Texas Tribune reported. The state will receive $281 million under the One Big Beautiful Bill Act, which also slashed Medicaid funding by an estimated $1 trillion.
While Texas is receiving the most funds, when its population rank is calculated that amount comes to about $60 per rural resident — the lowest rate in the nation. The funds come as the state’s rural hospitals and clinics face budget shortfalls and rising costs. Fourteen rural hospitals in Texas closed in the last decade, according to a report from the Center for Healthcare Quality. Over half of the 82 remaining facilities are at risk of closing.
The funding will be used to strengthen rural health care clinics by educating and attracting health care professionals to work in rural areas, as well as modernizing resources and technology.
Paxton loses bid to enforce rules on large-county prosecutors A Texas appeals court has again blocked Texas Attorney General Ken Paxton from enforcing new rules that would require prosecutors in the state’s largest counties to send his office detailed reports, according to the Denton Record-Chronicle.
The Texas Fifteenth Court of Appeals unanimously upheld a lower court order blocking the rules after several district attorneys filed suit. The court ruled that, under the Texas Government Code, Paxton lacks the legal authority to require the proposed reports.
“Based on the plain language of (the code), the Legislature did not expressly grant rule-making authority to the Attorney General, nor can rule-making power be implied where no such authority is expressly granted,” Justice Scott K. Field wrote in the three-judge panel’s opinion.
The rules were adopted last year and mandated that prosecutors in counties with populations of more than 400,000 turn over detailed information from case files from victims and witnesses, including internal emails.
The appeals court ruling stays in place while the case continues in a lower court.
At least 10 Texas incumbents in Congress not returning At least one-fourth of Texas’ congressional delegation will not be coming back in 2027, the Texas Standard reported. The massive departure likely will weaken the state’s clout on Capitol Hill. Nine members of Congress from Texas — six Republicans, three Democrats — have already announced they will leave at the end of the year.
Three incumbents in South Texas are facing competitive general election races.
In addition, a special election on Jan. 30 in a redrawn Houston district will elect a member of Congress who will then face U.S. Rep. Al Green, D-Houston, in the March primary. When the dust settles, between 10 and 17 of the 38-member delegation could end up leaving when this term ends.
“We’re slim right now, (from) what we used to be,” said U.S. Rep. Roger Williams, R-Willow Park, who, with 13 years, is one of the longest-tenured Texans in the House. “But that’s because we’ve had a lot of retirements. That happens. Now you’ve got to rebuild.”
Five big moves from the Lege in 2025 The Legislature made a host of major decisions in 2025, as The Dallas Morning News reported. Here are the highlights:
• Homeowners received a break on their property taxes after approving a proposed constitutional amendment in November. The homestead exemption increased to $140,000 from $100,000. People 65 and older were given an additional $60,000 exemption on top of that.
• A major public-school funding bill was passed, pumping $8.5 billion into raises for teachers and support staff and additional operational funding. Lawmakers also approved a statewide school voucher plan with $1 billion in initial funding. Eligible families can use public funds for private schools.
• The Texas Lottery Commission was abolished, with oversight moved to the Department of Licensing and Regulation. Online ticket sales were banned, as were courier services.
• After devastating floods in the Hill Country, especially along the Guadalupe River, killed at least 135 people, lawmakers approved funding to strengthen flood-warning systems, expand river and rainfall gauges, and speed updates to floodrisk mapping.
Warm, dry holiday weather elevates wildfire risk The Texas A&M Forest Service is warning that unseasonably dry and warm weather conditions are raising the risk of wildfire with the new year.
“We have seen above-normal grass production across large areas of Texas, especially near Abilene, Wichita Falls, Lubbock, Childress and Amarillo,” said Luke Kanclerz of the forest service. “These grasses are now dormant and freeze-cured, which means they dry quickly and can support wildfire activity when wind speeds increase.”
About 90% of wildfires in the state are caused by human activity, with debris burning and equipment use accounting for the majority of mishaps. Before traveling, drivers are urged to inspect their vehicles to make sure tires are properly inflated and trailer safety chains are secure to prevent creating sparks that can cause wildfires.
A total of 103 Texas counties are currently under a burn ban. A list can be found at https://tfsweb.tamu.edu/.
Judge blocks app store age-verification law A federal judge temporarily blocked a new state law requiring app stores to verify the ages of users and restrict use by those under 18, the San Antonio Express-News reported. U.S. District Judge Robert Pitman granted an injunction against the law, which was set to take effect Jan. 1, saying it likely violates free speech rights under the First Amendment.
“The act is akin to a law that would require every bookstore to verify the age of every customer at the door and, for minors, require parental consent before the child or teen could enter and again when they try to purchase a book,” Pitman wrote.
Attorney General Ken Paxton said he will appeal the ruling.
The law would require app store users to be over 18 or to have parental consent before downloading or purchasing an app. Tech companies such as Apple and Google objected, calling the measure a violation of privacy and saying it would affect all apps, including those dedicated to news, sports or weather.
Paxtons’ divorce files unsealed
After months of legal wrangling, the files in the divorce case of Angela and Ken Paxton have been released. The files show Angela Paxton contended the marriage has become “unsupportable” in part because of his infidelity, the Houston Chronicle reported.
Several media companies sued to force the release of the files, contending the public had a right to know since both parties are public elected officials. Angela Paxton is a Republican state senator from McKinney. Ken Paxton is leaving his attorney general post in a bid to unseat incumbent U.S. Sen. John Cornyn in the March GOP primary.
The couple in mid-December agreed to make the files public just before a scheduled hearing on whether the records should remain sealed.
In her motion for divorce, Angela Paxton asked for a larger portion of their assets. Ken Paxton responded that his wife of 38 years should “take nothing.”
South Texas builders: ICE arrests upend industry Immigration and Customs Enforcement agents have arrested more than 9,100 people in South Texas, The Texas Tribune reported, and builders say the arrests are slowing construction of new homes. The arrests account for nearly one-fifth of all ICE arrests in the entire state.
Mario Guerrero, executive director of the South Texas Builders Association, said ICE agents were operating without arrest warrants — which they can do legally — but are also detaining people who have proper authorization.
“It’s what’s happening across the Rio Grande Valley at construction sites,” he said.
Data from the Federal Reserve of Dallas indicates a 5% drop in construction jobs during the third quarter of 2025.
Borders is a veteran award-winning Texas journalist. He published a number of community newspapers in Texas during a 30-year span, including in Longview, Fort Stockton, Nacogdoches, LufkinandCedarPark.Email:
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