According to the Legislative Budget Board (LBB), HB 3371 will have no significant fiscal impact to the state. The legislation authorizes the Governor’s Office to apply to Congress for reimbursement of state border security expenditures and permits the Attorney General to initiate legal action if those reimbursements are not paid. Despite the significant reimbursement request—totaling $11.26 billion across the 2022–2023 and 2024–2025 fiscal biennia—state agencies have stated they can absorb any administrative or legal costs associated with the bill using existing resources.

The Office of the Governor (OOG) and the Office of the Attorney General (OAG) reported that the bill’s provisions would not require additional appropriations or staffing, which minimizes near-term costs. However, the timing and likelihood of receiving federal reimbursement remain uncertain, as these funds are subject to congressional approval and agency response. Thus, while the bill outlines a pathway for seeking federal repayment, the fiscal benefit to the state is speculative rather than guaranteed.

A critical nuance in the fiscal analysis is the potential effect on the Economic Stabilization Fund (ESF), also known as the Rainy Day Fund. If federal reimbursements are deposited into General Revenue (GR) as the bill requires, this could raise the ESF cap. In turn, a larger share of severance tax revenues might be diverted to the ESF rather than remaining in GR, slightly reducing the net fiscal benefit to the state.

At the local level, no significant fiscal implications are expected for city or county governments. Overall, the fiscal note presents HB 3371 as a low-risk policy instrument from a budgetary standpoint, with potentially large—but uncertain—upside depending on the federal government’s willingness to reimburse the state.

HB 3371 should receive a “yes” vote because it is a fiscally responsible, constitutionally grounded, and sovereignty-affirming measure that upholds the principles of limited government, personal responsibility (of citizens), and individual liberty—while attempting to rebalance the federal-state relationship with regard to border security.

First and foremost, this bill affirms Texas’s constitutional right to seek redress when the federal government fails to fulfill its constitutional obligation to secure the international border. Texas taxpayers have contributed over $11 billion toward border enforcement in recent years—expenditures that rightly fall under federal jurisdiction. HB 3371 provides a legal and orderly mechanism to seek reimbursement from the federal government through congressional application and, if necessary, legal action by the Texas Attorney General. This approach upholds limited government by requiring the federal government to take financial responsibility for its duties, rather than allowing Washington to offload core responsibilities onto the states indefinitely.

From the standpoint of personal responsibility, this bill reflects the idea that Texas, as a representative of its citizens, is taking ownership of its border crisis by demanding accountability—not from its people, but from a higher level of government that has failed in its mandate. It protects taxpayers from perpetual financial burdens that should not fall on them, thereby respecting the responsibility of citizens to fund only the essential functions of state government, not to subsidize federal negligence.

Additionally, this legislation respects individual liberty by ensuring that Texans are not deprived of public safety or economic stability due to federal inaction. A secure border is a prerequisite for the protection of life, property, and the rule of law. By seeking reimbursement, HB 3371 enables Texas to preserve local resources while continuing to defend the rights and safety of its people.

In sum, HB 3371 does not grow government, expand regulation, or impose new burdens. It simply asserts Texas’s rightful claim to financial reimbursement for assuming responsibilities the federal government has abdicated. A vote for this bill is a vote for fiscal fairness, state sovereignty, and constitutional order. Texas Policy Research recommends that lawmakers vote YES on HB 3371.

• Individual Liberty: The bill has a neutral impact on individual liberty. The bill does not directly create or restrict any individual rights, liberties, or freedoms. It focuses solely on administrative mechanisms for financial reimbursement from the federal government to the state of Texas for expenditures already made on border security. While it may be seen as indirectly supporting security-related efforts that proponents argue protect residents' safety and freedom of movement, it does not itself establish or alter legal rights for individuals.
• Personal Responsibility: The bill has no direct effect on personal responsibility. It does not shift any responsibilities from the state to individuals or vice versa. Its scope is limited to fiscal and legal processes between Texas state government and the federal government. However, one could interpret the bill symbolically as reflecting a broader assertion of Texas’s view of its responsibilities for border enforcement, though this is an institutional rather than personal accountability issue.
• Free Enterprise: There is minimal to no direct effect on free enterprise. The bill does not regulate businesses, create new economic constraints, or modify market dynamics. However, if federal reimbursements were eventually received and redirected through the General Revenue Fund, there could be indirect fiscal impacts—such as more funding availability for infrastructure or services—that might have marginal downstream benefits or drawbacks for the business environment. These are speculative and not intrinsic to the bill.
•  Private Property Rights: HB 3371 does not affect private property rights. It does not authorize any new takings, regulations, or protections concerning private land. Although some broader border security efforts can impact landowners near the border, this bill strictly addresses post-facto reimbursement and legal recourse—without introducing any property-related enforcement provisions.
• Limited Government: HB 3371 positively reinforces the principle of limited government by asserting Texas’s constitutional prerogatives in the face of federal inaction. Rather than expanding the scope of state authority over individuals or businesses, the bill strategically channels existing executive and legal powers to pursue reimbursement for state-funded border security efforts—functions that many argue are the federal government's responsibility under Article IV, Section 4 of the U.S. Constitution. By seeking to recoup state expenditures through lawful means, the bill aims to reduce the financial burden on Texas taxpayers and constrain unnecessary state spending, thereby reinforcing fiscal discipline. Moreover, the bill does not create any new regulatory agencies or expand administrative oversight. It operates within the existing legal infrastructure by empowering the governor and attorney general to act on behalf of the state in a targeted, cost-recovery role. This is a measured exercise of state sovereignty that upholds the limited government principle by encouraging constitutional federalism and limiting the long-term expansion of state obligations in an area that falls under federal jurisdiction.