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Capital Highlights
Gov. Greg Abbott says he got everything he pushed for during the Legislature’s 89th session, which ended on June 2.
The Dallas Morning News reported that the governor believes the “school choice” bill that passed will rejuvenate the state’s education system.
“More important for Texans, this has been the most transformative session for the future of Texas, and the positive effects of the session are going to be felt for decades,” Abbott said. Besides the voucher bill, which allows students to use public money for private school, he noted changes to bail policy, a large infusion of funding for the state’s water needs, and passage of property tax relief, which will total $51 billion.
Abbott is up for reelection in 2026 and would become the state’s longest-serving governor if he wins. At this point, he faces no major opposition either in the primary or the general election. With more than $70 million stashed away in campaign funds, he says he’s unworried about potential opponents.
“There’s only one goal, and that’s to win, and so I will run very aggressively,” Abbott said.
GOVERNOR STILL UNDECIDED ON THC BAN
Abbott said last week he has still not decided if he will sign or veto legislation banning THC products in Texas, the Houston Chronicle reported.
“I’m going to give it the thoughtful consideration from every angle that it deserves,” Abbott said of Senate Bill 3, which would outlaw all hemp-derived products containing THC, effective in September. He has until June 22 to decide The proposed ban has sparked opposition from people who run THC businesses, veterans groups, and others. The state now has more than 8,500 retailers selling THC products, which can have a high similar to that of marijuana, which is illegal except for medical reasons. The ban was a priority of Lt. Gov. Dan Patrick, who presides over the Senate.
STATE TO BECOME LEADER IN PSYCHEDELIC DRUG RESEARCH
At the same time Texas is poised to ban THC products, state leaders are investing $50 million in a psychedelic drug, ibogaine, that purports to have medicinal benefits, according to The Texas Tribune.
Senate Bill 2308 creates a consortium of universities, hospitals, and drug developers to conduct clinical trials on ibogaine, extracted from an ancient African shrub, which has been used in Mexican clinics to treat addiction and brain trauma.
Key to the bill’s passage in Texas were the cheerleading efforts of former Gov. Rick Perry. Since ending his tenure as U.S. Energy Secretary in 2021, he has become one of the highest-profile advocates of researching the beneficial medical effects of some psychedelics.
According to The Tribune, “Stanford Medicine conducted a study in 2024 that found ibogaine, when combined with magnesium to protect the heart, safely and effectively reduces PTSD, anxiety and depression and improves functioning” in veterans with traumatic brain injury.
Ibogaine is unlikely to be used recreationally because it does not provide an enjoyable high and leaves the user in a state of temporary paralysis.
Even with the $50 million in funding, Texas is likely at least six years from seeing any possibility of FDA approval for clinical trials.
STATE’S RAINY DAY FUND REACHES CAP
The Texas Economic Stabilization Fund, popularly called the Rainy Day Fund, has reached its statutory cap for the first time with more than $24 billion in the state’s piggy bank, the state comptroller’s office reported.
The 1988 constitutional amendment passed by voters that established the fund limits the fund to no more than 10% of the amount of revenue deposited into the General Revenue Fund during the previous biennium.
That means the excess will be returned to the state’s General Fund. Much of the marked increase in funds placed in the Rainy Day Fund comes from a 116% increase in oil and gas collections from 2021 to 2022.
Legislators can use the funding to either plug a budget deficit during the two-year cycle or address a project revenue shortfall in an upcoming biennium, with a threefifths majority legislative approval.
It can be used for other purposes if twothirds of legislators approve. Since the fund’s inception in 1988, about $17.7 billion has been appropriated for other purposes.
CONSTRUCTION OF NEW PANHANDLE STATE HOSPITAL ANNOUNCED
The Texas Health and Human Services Commission broke ground last week on the new Panhandle State Hospital in Amarillo. The Legislature approved $159 million in funding for the new inpatient psychiatric hospital, expected to be completed in 2027.
“Texans are better served when they have access to healthcare closer to home, and that is why state leaders and HHSC have invested in facilities like the Panhandle State Hospital,” said HHS Executive Commissioner Cecile Erwin Young. “When completed, this hospital will offer hope and healing to some of the most vulnerable people in the Panhandle.”
It will be the first state-operated hospital in the 26-county area around Amarillo. HHSC owns and operates nine state hospitals and one residential youth treatment center for people experiencing mental illness.
LOCAL HEALTH DEPARTMENTS BRACE FOR MORE FEDERAL CUTS
Local public health departments across Texas have been notified of another $119 million in federal cuts coming at the end of June, The Tribune reported. Those cuts come on the heels of $700 million in unspent COVID pandemic funding that was clawed back by the feds earlier this year.
The latest cuts involve Centers for Disease Control and Prevention grants aimed at increasing vaccine coverage, preparing local communities for infectious diseases and natural disasters, and helping hospitals prepare for emergency disasters and HIV prevention.
More cuts are possible by the end of the year. Texas already ranks among the worst in the country for public-health funding.
MEASLES OUTBREAK SEES SLIGHT INCREASE
After a week of no measles outbreaks in Texas, two new cases were reported last week, according to the Texas Department of State Health Services, bringing the total to 744 with 96 total hospitalizations and two fatalities, both schoolaged children.
Fewer than 10 of the confirmed cases are considered actively infectious.
Dawson, Gaines, Lamar, and Lubbock counties still have ongoing measles transmission, according to DSHS. A majority of the total cases were located in Gaines County, on the border with New Mexico.
Gary 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, Lufkin, and Cedar Park. Email: gborders@ texaspress.com.
