TexasHB 276589th Legislature Regular SessionHouse

Relating to the Rural Economic Development and Investment Program and the Texas economic development fund.

Sponsored By: Ryan Guillen, Judith Zaffirini (Democratic)

Became Law

AgricultureEconomic & Industrial Development--RuralEnergy--GeneralMines & Mineral ResourcesPolitical SubdivisionsSpecial Districts & Authorities--MiscellaneousState Finances--AppropriationsState Finances--Management & ControlUtilities--GeneralRURALTEXAS ECONOMIC DEVELOPMENT FUNDAGRICULTURE, COMMISSIONER OFAGRICULTURE, DEPARTMENT OF

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

More Texas communities qualify for rural aid

Beginning September 1, 2025, Texas rural development aid covers counties with up to 200,000 people, up from 75,000. Cities with up to 50,000 people and their public utilities also qualify. Eligible recipients include local government bodies wholly or partly in qualifying counties, plus development corporations and lenders mainly representing qualifying counties or cities. Projects can attract mineral extraction and other nonretail businesses, alongside manufacturing, freight storage, and distribution centers. Aid also supports land and right-of-way projects, water and waste facilities, transportation, and other activities the agriculture commissioner finds encourage rural development and infrastructure; funding depends on state appropriations.

Texas development funding expands with aid caps

Beginning September 1, 2025, the Texas economic development fund supports qualifying small-business credit programs and agriculture department economic development programs. These include export programs and rural development partnerships with government agencies, nonprofits, private entities, and public universities. Fund money is dedicated to the department for these purposes; the law specifies no funding amount. The department must keep the fund operating as an ongoing financing source, reusing principal and interest payments for loans and grants. For loans and grants made on or after that date, each recipient faces a $1 million cumulative aid cap and a separate $1 million outstanding-loan cap. Loans cannot exceed 20 years, and the department can set repayment rules for loans and grants.

Sponsors & Cosponsors

Sponsors

  • Ryan Guillen

    House

  • Judith Zaffirini

    Democratic • Senate

Cosponsors

  • César Blanco

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 111 • No: 24

Senate vote • 5/22/2025

Record vote

Yes: 25 • No: 6

Senate vote • 5/22/2025

Record vote

Yes: 25 • No: 6

Senate vote • 5/22/2025

Record vote

Yes: 25 • No: 6

Senate vote • 5/22/2025

Record vote

Yes: 25 • No: 6

House vote • 4/25/2025

Record vote

Yes: 0 • No: 0

House vote • Unknown

Committee vote: Agriculture & Livestock

Yes: 7 • No: 0

Senate vote • Unknown

Committee vote: Economic Development

Yes: 4 • No: 0

Actions Timeline

  1. Effective on 9/1/25

    6/20/2025House
  2. Filed without the Governor's signature

    6/20/2025House
  3. Sent to the Governor

    5/26/2025House
  4. Signed in the Senate

    5/25/2025Senate
  5. Signed in the House

    5/24/2025House
  6. Reported enrolled

    5/23/2025House
  7. Senate passage reported

    5/22/2025House
  8. Record vote

    5/22/2025Senate
  9. Passed

    5/22/2025Senate
  10. Read 3rd time

    5/22/2025Senate
  11. Record vote

    5/22/2025Senate
  12. Three day rule suspended

    5/22/2025Senate
  13. Record vote

    5/22/2025Senate
  14. Read 2nd time & passed to 3rd reading

    5/22/2025Senate
  15. Record vote

    5/22/2025Senate
  16. Rules suspended-Regular order of business

    5/22/2025Senate
  17. Placed on intent calendar

    5/22/2025Senate
  18. Co-sponsor authorized

    5/22/2025Senate
  19. Committee report printed and distributed

    5/20/2025Senate
  20. Recommended for local & uncontested calendar

    5/20/2025Senate
  21. Reported favorably w/o amendments

    5/20/2025Senate
  22. Vote taken in committee

    5/19/2025Senate
  23. Testimony taken in committee

    5/19/2025Senate
  24. Considered in public hearing

    5/19/2025Senate
  25. Scheduled for public hearing on . . .

    5/19/2025Senate

Bill Text

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