The Texas legislature adjourned its 2025 session on June 2. Nearly 8800 bills were introduced, with Governor Greg Abbott (R) signing 1,155 and vetoing 28. Here is what you may have missed:
Divestment
On June 20, Governor Abbott (R) signed two bills dealing with state divestment: HB 34 and SB 667. HB 34 prohibits entities subject to the Public Funds Investment Act, the Employees Retirement System of Texas, the Teacher Retirement System of Texas, or the State Comptroller from acquiring securities issued by foreign countries of concern or entities owned or controlled by such a country, including China and Russia. SB 667 requires the State Comptroller to maintain and update a list of entities in which state government entities may not invest and must divest themselves of. This applies to entities incorporated or headquartered in China and which are controlled by the PRC, the Chinese Communist Party, or a lower level of government or political control of the PRC.
Make America Healthy Again (MAHA)
On June 22, Governor Abbott (R) signed SB 25, making Texas one of the first states in the nation to enact a MAHA bill. US Secretary of Health and Human Services Robert F. Kennedy Jr. responded to the signing by stating that “Texas is Leading the Way.” SB 25 requires all food products to be labeled with any ingredient the FDA deems necessary, including several types of food coloring, interesterified palm and soybean oils, and lye. SB 25 also adds phrasing requirements to food labeling, including for online sales. It also establishes a nutrition advisory council at the Department of State Health Services. In addition, Governor Abbott (R) signed SB 324, which prohibits the ingredients required to be listed under SB 25 from being served in schools. Legislative regulating the presence of food additives has been at the forefront of conversation this year, with West Virginia and Louisiana also passing significant legislation.
Budget
Governor Abbott (R) line-item vetoed and signed Texas’s 2025-2026 budget. Key provisions retained in the budget include $243 million to allow schools to adopt new instructional materials, $120 million to Texas Tech University to design, construct, and operate an advanced nuclear reactor and to research water desalination, and over $650 million for hospital construction and repairs. Of note, Abbott vetoed provisions that would have allowed for a Summer EBT Program.
Looking Ahead
The Texas legislature will enter into a special session on July 21 to consider seven bills that were vetoed by Governor Greg Abbott (R). The Governor himself has placed these on the agenda to be discussed during the session. These bills include SB 3, which regulates consumable products derived from hemp and SB 648, which relates to recording requirements for certain instruments concerning real property. The legislature may also consider severe weather alerts during this session as the state addresses the impact of deadly floods. Texas does not have a regular session in 2026. The next regular session is scheduled to convene on January 12, 2027.