HB 263 revises Section 256.103(b) of the Texas Transportation Code, adjusting the allocation percentages for grant distribution from the transportation infrastructure fund to counties. The bill reallocates grant funds based on various criteria, including weight tolerance permits, oil and gas production taxes, horizontal and vertical well completions, and oil and gas waste injections. Notably, the bill adds new categories for “regularly producing horizontal wells” and “regularly producing vertical wells,” with funds distributed among counties adjacent to those where production occurs. The bill becomes effective on September 1, 2025​.