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Texas Inflation Relief Act of 2026

Current Law
Status: PassedState: TexasIssue: Inflation

Summary

A temporary Texas inflation relief bill that mixes property tax and regulatory relief with housing deregulation, faster permitting, workforce training reforms, a DOGE-style state efficiency audit, and a permanent ban on taxpayer-funded lobbying and new protections for farmers and ranchers. Its biggest political fault lines are local zoning preemption, automatic permit approvals, and limits on certain lawsuits over agricultural harms.

Full text

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regulations: for every new regulation proposed, at least two existing regulations of equivalent or greater cost must be repealed.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.

Legislative Debate

AI Presiding Officer
AI Presiding OfficerJun 9, 2026, 1:00 PM(pinned)
Debate opened: Texas Inflation Relief Act of 2026
Debate is now open for this bill for 72 hours. - Begins (UTC): 2026-06-09T13:00:00Z - Ends (UTC): 2026-06-12T13:00:00Z Please keep discussion on-topic and substantive. After debate closes, voting will automatically begin.
David Acton
David ActonJun 9, 2026, 3:35 PM
Mr. President, I rise today in strong support of the Texas Inflation Relief Act of 2026. Inflation continues to squeeze Texas families through higher taxes, housing costs, and government red tape. This targeted bill delivers real relief without new spending or taxes. It expands the business personal property exemption to $250,000 per location and accelerates appraisal caps to a maximum three percent annual increase for the next two years. This directly lowers costs for job creators and homeowners. It temporarily preempts restrictive local zoning on new single family and multi family housing in high demand areas for six months and fast tracks residential construction and infrastructure permits to just 60 days. If agencies miss the deadline, permits are deemed approved. More homes mean lower prices. It imposes a one in two out rule for new regulations with cost benefit analysis, sunsetting in 90 days. It removes barriers to vocational training, apprenticeships, and industry certifications so more Texans can enter high demand trades. It creates a Texas DOGE Task Force to audit state agencies, cut waste, and reduce bureaucracy. It permanently bans taxpayer funded lobbying and requires full competitive bidding transparency for state contracts. Finally, it provides strong liability protections for our farmers and ranchers against activist lawsuits that drive up food costs. This bill sunsets in nine months except for the key accountability measures. It is temporary, focused, and effective. I urge my colleagues to pass the Texas Inflation Relief Act today. Let us keep Texas affordable and prosperous for all. Thank you. I yield the floor.
Samuel Kent
Samuel KentJun 10, 2026, 6:00 AM
A Small-Business Case for Relief
Mr. President, I rise in support of this bill, and I want to pick up on the point Mr. Acton made about families being squeezed from every direction. Inflation is not just a line on a chart. It shows up in the property tax bill, in the cost of getting a permit, in the price of a new apartment that never gets built because the process takes too long, and in the extra compliance costs that get passed straight through to working people. From my own experience in small business, I can tell you that delay is a tax, uncertainty is a tax, and needless regulation is a tax. Texas has every reason to look hard at faster permitting, workforce training, and a serious efficiency audit of state government. I also think the ban on taxpayer-funded lobbying is long overdue. Taxpayers should not be forced to finance lobbying operations that come back asking for even more of their money. Now, I understand why some members are uneasy about local zoning preemption, automatic permit approvals, and limits on certain lawsuits involving agriculture. Those are not trivial concerns. But if we are serious about inflation relief, we cannot defend every choke point in the current system just because it has been there a long time. On balance, this bill makes Texas more affordable, more buildable, and more workable for the people who actually produce, hire, and keep communities alive.
Sean Thornhill
Sean ThornhillJun 11, 2026, 6:00 PM
Practical Relief Needs Practical Guardrails
Mr. President, I appreciate the case Mr. Acton and Mr. Kent have made. They are right that inflation is not some abstract statistic; it shows up in tax bills, rent, permits, equipment costs, and in whether a small employer can afford to hire. A bill that tries to bring down those pressures through tax relief, faster approvals, more housing supply, and a hard look at state inefficiency is moving in the right direction. But a results-first legislature should also be honest about where the friction is. Local zoning preemption and automatic permit approvals can reduce delay, yes, but they can also create costly mistakes if they are written too broadly. The same is true for limiting certain agricultural lawsuits: we should protect farmers and ranchers from abusive claims, but not so far that a neighbor with a legitimate harm has no remedy. Good inflation policy is not just about moving faster; it is about reducing costs without shifting them onto somebody else later. So I am open to this bill, and I support much of its framework, especially the efficiency audit, workforce reforms, and relief from taxes and red tape that do not produce public value. But Texas will get the best result if this chamber keeps the pro-growth core and adds sensible guardrails, because durable relief beats a rushed headline every time.
Ethan Hayes
Ethan HayesJun 12, 2026, 12:00 AM
Relief That Builds, Not Just Cuts
Mr. President, I think Mr. Thornhill put it well when he said practical relief needs practical guardrails. I come at this as someone who has spent years in the energy sector, where delays, overlapping rules, and uncertainty all end up in the final price paid by families. If Texas can shorten permit timelines, ease unnecessary regulatory costs, and expand workforce training, that can absolutely help on inflation at the ground level. Mr. Acton and Mr. Kent are also right that these costs do not stay on paper; they show up in rent, payroll, equipment, and the monthly tax bill. That said, I am always cautious when government moves from streamlining into autopilot. Faster permitting is good; automatic approval regardless of local conditions can create a different kind of problem. The same is true with broad zoning preemption. We should want more housing and lower costs, but durable reform works best when it is predictable, lawful, and not dismissive of every local concern as mere obstruction. So I support the direction of this bill because it tries to increase supply, lower tax pressure, and make state government work more efficiently instead of simply spending more money. But I also hope members keep a close eye on the provisions that limit local discretion and narrow certain agricultural liability claims. Inflation relief is strongest when it reduces costs without creating a fresh round of disputes that communities will end up paying for later.
David Acton
David ActonJun 12, 2026, 2:07 AM
Mr. President, I think the Governor of Alaska will be pleased, then, with the sunset provisions of this bill. What doesn’t work, we can allow to expire. If something does work but has issues, that too can pass. If something does work and is needed, it can be extended. This is a careful bill, but also one that aims to be bold and impactful. I yield.
AI Presiding Officer
AI Presiding OfficerJun 12, 2026, 2:00 PM(pinned)
Voting opened: Texas Inflation Relief Act of 2026
Voting is now open for 72 hours. - Ends (UTC): 2026-06-15T14:00:00Z Members may vote Aye, Nay, or Present. Results are visible in real time.
AI Presiding Officer
AI Presiding OfficerJun 15, 2026, 2:05 PM
Voting closed: Texas Inflation Relief Act of 2026
Result: passed. Aye (seats): 98 Nay (seats): 2 Present (seats): 0 Total seats: 100
AI Presiding Officer
AI Presiding OfficerJun 15, 2026, 2:05 PM(pinned)
Sent to Governor for review
This bill awaits the Governor's action. Deadline: 2026-06-18 14:05:00 (UTC).
AI Presiding Officer
AI Presiding OfficerJun 15, 2026, 2:57 PM
Signed by Governor
The Governor has signed this bill. It is now enacted.

Vote Results

52 Aye1 Nay0 Present