A BILL TO BE ENTITLED AN ACT
relating to inflation relief; providing for a short title and sunset provision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act shall be known and may be cited as the Texas Inflation Relief Act of 2026.
SECTION 2. Expansion of Business Personal Property Exemption and Appraisal Caps.
The business personal property exemption is expanded to $250,000 per business location. Appraisal caps on residential and commercial property are accelerated, with the annual increase limit reduced to three percent (3%) for the next two tax years.
SECTION 3. Preemption of Local Zoning Restrictions.
For a period of six (6) months following the effective date of this Act, local governments are preempted from enforcing zoning ordinances that restrict the development of new single-family or multi-family housing in high-demand areas, as determined by the Texas Department of Housing and Community Affairs.
SECTION 4. Fast-Track Permitting for Residential Construction.
State agencies and local permitting authorities shall establish a 60-day maximum review period for all complete permit applications for residential construction and supporting infrastructure projects. Applications not acted upon within 60 days shall be deemed approved, subject to compliance with core safety and environmental standards.
SECTION 5. One-In, Two-Out Regulatory Rule.
All state agencies shall implement a “one-in, two-out” rule for new regulations: for every new regulation proposed, at least two existing regulations of equivalent or greater cost must be repealed. Every proposed regulation must include a detailed cost-benefit analysis demonstrating net economic benefit to Texas. This section sunsets 90 days after the effective date.
SECTION 6. Workforce Development Reforms.
The Texas Workforce Commission and Higher Education Coordinating Board shall remove unnecessary barriers to vocational training, apprenticeships, and industry-recognized certifications by streamlining approval processes for new programs, expanding credit for prior learning and on-the-job experience, and prioritizing partnerships with industry for high-demand trade and technical certifications.
SECTION 7. Texas DOGE-Style Efficiency Audit.
The Governor shall establish a Texas DOGE Task Force to conduct a comprehensive efficiency audit of state agencies to cut waste, consolidate duplicative agencies and functions, and reduce state workforce bloat where possible. Recommendations shall be reported within 180 days.
SECTION 8. Ban on Taxpayer-Funded Lobbying and Bidding Transparency.
(a) No state agency, political subdivision, or entity receiving state funds may use public money to lobby the Legislature, Congress, or any federal agency.
(b) All state contracts, procurements, and grants exceeding $50,000 must use full competitive bidding, with all bids and awards publicly posted online within 48 hours of decision.
This section does not sunset.
SECTION 9. Liability Protections for Farmers and Ranchers.
Farmers and ranchers are protected against activist lawsuits by:
(a) limiting noneconomic damages to $250,000 per claimant in suits alleging nuisance, trespass, or environmental harm without physical injury;
(b) requiring courts to grant expedited summary dismissal (within 60 days) for suits lacking substantial evidence of actual harm caused by standard farming or ranching practices; and
(c) allowing recovery of reasonable attorney’s fees by prevailing agricultural defendants.
This section does not sunset.
SECTION 10. Sunset Provision.
Except for Sections 8 and 9, this Act sunsets nine (9) months after the effective date.
SECTION 11. This Act takes effect immediately upon passage and approval by the Governor.
