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HB 5 Legislative Priority

Relating to making supplemental appropriations for disaster relief and giving direction and adjustment authority regarding those appropriations.
Overall Vote Recommendation
Neutral
Principle Criteria
positive
Free Enterprise
positive
Property Rights
negative
Personal Responsibility
negative
Limited Government
neutral
Individual Liberty
In Layman's Terms

HB 5 appropriates $324 million from the Rainy Day Fund for disaster recovery, flood warning systems, weather forecasting, and emergency communications. The funding is intended to strengthen Texas's response to future disasters and support recovery from the 2025 Hill Country floods.

Digest

HB 5 appropriates a total of $324 million from the Economic Stabilization Fund (ESF) to bolster Texas’ disaster response, emergency preparedness, and public safety infrastructure. This supplemental appropriations bill is primarily reactive to recent severe weather events, specifically, a major flood disaster in the Texas Hill Country declared on July 4, 2025, and is designed to ensure state and local governments have the tools to mitigate damage and respond effectively to emergencies.

The bill allocates $200 million to the Office of the Governor’s Trusteed Programs to provide matching funds for federal disaster aid and to support the state’s own disaster recovery efforts. An additional $50 million is earmarked for grants to counties and municipalities in 30 flood-affected counties to purchase and implement flood warning sirens, rain gauges, and other related safety equipment.

Another $24 million is appropriated to support meteorological forecasting and weather intelligence efforts, aiming to improve early flood detection and high-resolution modeling in vulnerable areas. The bill also includes a contingent appropriation of $50 million for interoperable emergency communications infrastructure. If HB 3 or similar legislation creating a Texas Interoperability Council passes, funds go to the Council; otherwise, they are transferred to an emergency radio infrastructure account for use by the Governor's office in accordance with state law.

HB 5 is a time-limited appropriation covering a two-year period from the bill’s effective date. The bill also ensures compliance with existing budgetary limitations, reporting standards, and transfer authority under prior General Appropriations Acts. Overall, the bill strengthens the state's capacity to respond to natural disasters and enhances long-term resilience through targeted investments in local and state emergency systems.

Author (3)
Greg Bonnen
Armando Martinez
A.J. Louderback
Co-Author (90)

Contact the Author

Rep. Greg Bonnen

Capitol Phone:
(512) 463-0729
Capitol Office:
EXT E2.502
E-Mail:
[email protected]
Visit Official Website
Fiscal Notes

According to the Legislative Budget Board (LBB), HB 5 appropriates a total of $324 million from the Economic Stabilization Fund (ESF) to fund disaster response, flood warning systems, meteorological forecasting, and interoperable emergency communications. The fiscal note issued by the LBB outlines two different scenarios depending on the bill’s effective date, each with distinct fiscal implications.

If the bill takes effect on or after September 1, 2025, the entire $324 million appropriation will be expended in fiscal year 2026, drawing directly from the ESF without impacting General Revenue (GR). In this case, the net fiscal impact to General Revenue for the 2026–2027 biennium would be $0.

However, if the bill takes effect before September 1, 2025, due to the constitutional cap on the ESF balance, the ESF drawdown would trigger a reallocation of $307 million in severance tax revenue that would otherwise have been deposited into the ESF. Instead, that amount would be retained in the General Revenue Fund, resulting in a $306.6 million cost to GR and $17.4 million to the ESF in fiscal year 2025.

Additionally, a $50 million contingency appropriation is included in the bill for emergency communications. If H.B. 3 (or similar legislation) passes, these funds will go to the Texas Interoperability Council. If not, the same amount is transferred to GR Account 5153 (Emergency Radio Infrastructure) and reappropriated to the Governor’s Trusteed Programs, resulting in a net-zero impact to that account regardless of the outcome.

Overall, while the bill represents a significant one-time investment, the ESF is designed for emergency use, and the proposal does not create recurring obligations or affect local government budgets significantly. Any effect on ESF earnings or interest would be negligible.

Vote Recommendation Notes

HB 5 is a supplemental appropriations bill that directs $324 million from the Economic Stabilization Fund (ESF) to the Trusteed Programs within the Office of the Governor for disaster relief, preparedness, and response efforts across Texas. The funding is distributed across four categories: $200 million for FEMA match and general state disaster recovery, $50 million in grants to local governments in counties affected by the July 2025 flooding, $24 million for improvements in meteorological forecasting and flood modeling, and a $50 million contingent appropriation for interoperable emergency communication infrastructure.

On its face, HB 5 is a legitimate, constitutionally authorized emergency appropriation, triggered by a gubernatorial disaster declaration following a severe weather event. It is a one-time use of the ESF, Texas’s designated “Rainy Day Fund”, and does not create new programs, expand government authority, or impose regulatory or tax burdens. Moreover, the bill includes appropriate guardrails such as time limits, reporting and transfer provisions, and conditional appropriations depending on the outcome of other legislation. These mechanisms reflect legislative discipline and fiscal accountability.

However, the sheer scale of the appropriation, more than a quarter of a billion dollars in a single supplemental bill, raises valid questions about the long-term precedent it sets. While the funding serves a public safety purpose, it could unintentionally expand public expectations of state intervention in future disasters, even in cases where local governments or private actors could effectively respond. In this way, HB 5 subtly shifts the center of gravity for disaster response away from local initiative and voluntary efforts toward state-led management, a move that may not align with Texas’s long-standing emphasis on limited government and community self-reliance.

Additionally, while the bill does not directly intrude upon individual liberty or property rights, it also does not affirmatively advance them. The enhancements to forecasting, infrastructure, and communications may improve public safety and awareness, but they are all implemented via centralized state programs. The bill neither empowers private actors nor fosters innovation in the private disaster resilience market. Likewise, the scope of eligible recipients is confined to public entities, leaving no role for private or nonprofit stakeholders who have historically contributed significantly to Texas disaster recovery.

Finally, although the fiscal note from the Legislative Budget Board confirms that the appropriation will not affect General Revenue and is compliant with constitutional ESF limits, the opportunity cost of drawing $324 million from the ESF for infrastructure and administrative upgrades should not be ignored. Those funds may be needed for future crises of broader scale, and appropriating them now, particularly with $50 million contingent on other legislation, could reduce fiscal flexibility in the future.

In conclusion, while HB 5 is targeted, procedurally sound, and well-intentioned, its scale and scope warrant caution. The bill is not inherently problematic, but it does introduce important questions about the appropriate role of the state in disaster recovery and preparedness. As such, Texas Policy Research remains NEUTRAL on HB 5, recognizing the bill’s immediate utility while remaining mindful of its broader implications for limited government, fiscal precedent, and local autonomy. The bill should be carefully implemented and closely monitored to ensure it complements, not replaces, community- and market-based solutions.

Free Enterprise
positive
The bill is broadly supportive of economic continuity, particularly by funding tools that protect businesses from flood damage and improve state coordination during emergencies. However, its reliance on public-sector spending for forecasting, communications infrastructure, and even potential training services (in the Senate companion bill) may crowd out private-sector innovation or duplicate functions already performed by private firms or nonprofits. There is no evidence of regulatory interference with private markets, but the state’s leading role in delivering these services may limit the market for alternative, entrepreneurial solutions in the disaster resilience space.
Property Rights
positive
The bill aligns well with this principle. It invests in systems, such as flood warning sirens, rain gauges, and high-resolution weather modeling, that are designed to help individuals and localities protect their property from disaster-related loss. Critically, it does not authorize eminent domain, interfere with land use, or impose new land management regulations. It is entirely grant-based and voluntary for local governments. As such, the bill supports the preservation of private property rights without infringing upon them.
Personal Responsibility
negative
This principle presents the most nuanced tension with the bill. It centralizes significant disaster response funding at the state level, which may inadvertently reduce the incentive for local governments, community organizations, and individuals to engage in proactive disaster planning. Texas has a strong tradition of volunteer-led, bottom-up disaster response, such as through faith-based and nonprofit groups, which may be subtly displaced or discouraged by large-scale state interventions. Over time, if such appropriations become routine, they could shift expectations and responsibility away from individual and local initiative.
Limited Government
negative
This is where the bill presents the greatest philosophical challenge. Although the appropriations are time-limited, narrowly scoped, and tied to a declared disaster, the $324 million commitment from the Economic Stabilization Fund is substantial. The bill establishes no new permanent programs or bureaucracies, which supports the principle of restrained government. However, the magnitude of state-managed disaster spending could set a precedent for future appropriations, especially in events where voluntary or local responses could be more appropriate. It risks normalizing a central role for the state in disaster recovery, which, if repeated over time, could erode the balance between state power and community self-governance.
Individual Liberty
neutral
The bill does not infringe upon personal freedoms or impose new mandates, restrictions, or penalties on individuals. In fact, by funding early warning systems, improving meteorological accuracy, and enhancing emergency communications, it arguably supports individual liberty by empowering Texans with better information to protect themselves and their families during disasters. However, these benefits are delivered through state-administered programs, not through direct empowerment of private individuals or communities. As such, while neutral on liberty in structure, the bill does not actively expand individual autonomy.
Committee Vote Information
  • House Select Committee on Disaster Preparedness & Flooding: 9Y/0N
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