According to the Legislative Budget Board (LBB), HB 4751 is projected to have a two-year negative net impact of approximately $3.46 million to the state’s General Revenue Fund through the biennium ending August 31, 2027. This estimate reflects the anticipated cost of administering the Texas Quantum Initiative through the Office of the Governor (OOG), which includes establishing a new executive committee and hiring dedicated staff to support the initiative’s implementation and operations.

The Office of the Governor is expected to require an additional 7.5 full-time equivalent (FTE) employees, including research specialists, a financial analyst, compliance personnel, legal counsel, a project manager, and technical support. These personnel costs, combined with associated expenses such as travel and professional services, account for the projected biennial cost. The initiative will not be self-funding and relies on General Revenue unless other funds (e.g., gifts, grants, or donations) are appropriated.

HB 4751 also creates a Quantum University and Business Innovation for Texas Fund, a dedicated account within the General Revenue Fund, which can be used to provide matching funds for public entities, especially institutions of higher education, to support quantum design and manufacturing projects. However, the fiscal note identifies an indeterminate cost associated with this grant component, as the total financial impact will depend on the number of grant applications submitted and appropriations made by the Legislature in future sessions.

There is no significant fiscal impact anticipated at the local government level. Overall, while the immediate costs to the state are modest, the bill lays the groundwork for potential future funding commitments to support the quantum sector’s development in Texas.

HB 4751 seeks to establish the Texas Quantum Initiative under the Office of the Governor with the goal of accelerating the development of quantum computing, networking, and sensing technologies in Texas. While the bill’s intent to promote innovation and economic growth in a promising sector is clear, the mechanism it employs—public funding and state-directed coordination—raises legitimate concerns related to the principles of limited government, taxpayer stewardship, and free market integrity.

The bill creates a new governmental structure: a seven-member executive committee with hiring authority, budget oversight, and responsibility for developing strategic plans and managing a dedicated fund. It authorizes the use of taxpayer money to award grants to businesses and public institutions for quantum research and development. Even though participation is voluntary and the bill does not impose regulations or taxes, it nonetheless represents a tangible expansion of government scope and function, as well as a shift toward active economic intervention using public funds.

This raises serious concerns about the role of government in a free enterprise system. The use of taxpayer dollars to “incentivize” specific industries—no matter how innovative—sets a precedent for economic favoritism and market distortion. It invites government to play an outsized role in directing private-sector investment priorities, which could lead to inefficiencies, politicization, or unintended long-term dependencies. There is also no performance-based sunset provision or opt-out mechanism if the initiative fails to produce a measurable return on investment.

Furthermore, HB 4751 introduces a new fund structure within the General Revenue Fund—the Quantum University and Business Innovation for Texas Fund—without limiting provisions on how large that fund could grow over time or how aggressively it might pursue future appropriations. Although the fund is initially seeded with a relatively modest appropriation, its open-ended nature could lead to future budget increases and long-term taxpayer exposure.

Given these concerns, lawmakers who prioritize limiting the growth of government, protecting taxpayers from speculative public investment, and preserving the neutrality of free markets would find strong cause to oppose this bill. The development of quantum technology, while important, should be driven by private capital, competition, and demand—not by state-led incentives and grant-making programs. For these reasons, Texas Policy Research recommends that lawmakers vote NO on HB 4751.

• Individual Liberty: The bill does not infringe upon or directly expand individual rights. It does not impose mandates, restrictions, or regulatory requirements on individuals or their behavior. In this sense, it is liberty-neutral. Participation in any grants or partnerships under the initiative is voluntary, and the initiative does not authorize surveillance, licensing, or control mechanisms over private persons.
• Personal Responsibility: While the bill does not discourage individual responsibility in a direct way, it does shift responsibility for technological advancement and economic innovation from the private sector to the public sector. When the government funds specific industries with taxpayer money, it signals that government—not private actors—is responsible for choosing winners in the marketplace. This weakens the cultural expectation that private initiative and risk-taking are the engines of progress and prosperity.
• Free Enterprise: HB 4751 conflicts with the principle of free enterprise. By creating a dedicated fund to award grants to public institutions and private businesses for quantum-related projects, the bill introduces a governmental role in capital allocation—one that can distort market dynamics. Even if intended to attract investment and accelerate innovation, taxpayer-funded grants and strategic planning by a government-appointed committee put the state in the role of economic planner. This undermines the competitive neutrality of the market, potentially favoring politically connected or compliant firms over innovative but unfunded competitors.
• Private Property Rights: The bill does not involve eminent domain, zoning, land-use regulation, or any infringement on property rights. Although it authorizes investments in infrastructure (which could eventually touch on real estate), there is no indication that property owners’ rights would be affected. Any facilities developed under this initiative would likely occur on voluntarily contracted terms.
• Limited Government: HB 4751 represents a clear departure from the principle of limited government. It establishes a new permanent governmental program (the Texas Quantum Initiative), adds state employees, and creates a new fund that could grow in scope over time. The bill authorizes the use of general revenue to subsidize strategic goals selected by an appointed committee, without a sunset clause or hard cap on expenditures. This creates a new bureaucratic layer with long-term budgetary and institutional momentum. While the bill is administratively housed within the Office of the Governor rather than forming a standalone agency, the creation of a planning body with staff, authority, and public funding mechanisms represents a tangible expansion of state function.

• SB 2827 (Same As)