According to the Legislative Budget Board (LBB), SB 735 is projected to have a negative fiscal impact on the state's General Revenue fund, totaling approximately $1.3 million over the 2026–2027 biennium. Although the bill does not make a direct appropriation, it establishes the legal basis for future appropriations to fund its programs.

The primary cost driver is the creation and administration of the Holocaust Remembrance Week Grant Program by the Texas Historical Commission (THC). The grant program is estimated to require $250,000 per fiscal year for grants to school districts, museums, and relevant organizations. Additionally, the THC anticipates hiring two new full-time employees (FTEs)—an Education Specialist IV and a Program Specialist IV—at an annual personnel cost of $212,865, with additional operating expenses (travel, supplies, and administrative costs) estimated at $36,928 annually. Furthermore, professional services costs are projected to be $156,144 in FY 2026 and decrease slightly in future years.

Technology costs are modest, with a one-time $10,000 technology expense in 2026 for necessary equipment and a replacement cycle cost anticipated in 2030. The Higher Education Coordinating Board is expected to absorb the costs of the pilot educator preparation program within existing resources, without needing additional state funding.

At the local level, education service centers and school districts may incur some costs associated with compliance, particularly related to expanding Holocaust education training and fulfilling new reporting requirements. However, these local impacts are expected to be relatively minor compared to the state costs.

SB 735 seeks to enhance Holocaust education across Texas public schools and higher education institutions by expanding collaborations with Holocaust museums, establishing an annual reporting requirement for Holocaust Remembrance Week activities, creating a Holocaust Remembrance Week Grant Program administered by the Texas Historical Commission, and launching an educator preparation pilot program focused on Holocaust instruction. The bill responds to documented gaps in awareness and resource availability identified through a 2024 survey of Texas public schools. The underlying goal — to strengthen historical education and ensure that future generations learn the critical lessons of the Holocaust — is honorable, urgent, and necessary.

However, despite the worthy intent, the structure of SB 735 raises serious concerns regarding the principles of limited government, fiscal responsibility, and taxpayer protection. First, the bill creates a new ongoing grant program funded by General Revenue, with an estimated cost of $1.3 million over the next biennium and continuing annual expenses thereafter. Even though the fiscal impact may appear modest relative to the state budget, it represents a permanent expansion of state functions outside the core constitutional responsibilities of government. Conservatives committed to a limited government philosophy must weigh even small expansions carefully, as every new grant program creates precedent for future discretionary programs and further centralization of educational initiatives at the state level.

Second, the taxpayer burden imposed by the bill is not trivial. Texans continue to face high local property taxes, economic uncertainty, and rising living costs. In this context, new state-level expenditures — especially for discretionary educational enhancements — should be closely scrutinized. While Holocaust education deserves emphasis, it is reasonable to expect that such instruction can be achieved through existing education frameworks, partnerships, and local initiatives without creating new, taxpayer-funded grant programs.

Third, SB 735 carries the inherent risk of mission creep. Grant programs historically tend to expand over time in both size and scope. Although the educator preparation pilot program established under the bill contains a built-in sunset date (December 1, 2031)​, the Holocaust Remembrance Week Grant Program does not include a sunset provision, automatic spending cap, or strict legislative oversight mechanism. As a result, there is a significant risk that future legislatures could expand the program, increase appropriations, or broaden its scope beyond Holocaust education, further eroding the principles of limited and fiscally responsible government.

Finally, the bill adds additional administrative and reporting burdens to local school districts and education service centers. While these reporting requirements are not onerous compared to other mandates, they nevertheless represent another incremental state encroachment into local control of educational priorities — an area where conservative policymakers traditionally prefer to defer to local communities.

In sum, while SB 735 seeks to address a serious societal need with noble intent, it does so in a manner that grows the size and scope of government, imposes new costs on taxpayers, and risks future program expansion without sufficient safeguards. For these reasons, and out of fidelity to the principles of limited government, fiscal stewardship, and local control, Texas Policy Research recommends that lawmakers vote NO on SB 735.

• Individual Liberty: The bill advances Individual Liberty by promoting education on the Holocaust, an event that stands as a stark reminder of the consequences of unchecked authoritarianism and the suppression of human rights. By improving historical awareness among students, the bill strengthens a culture of vigilance against oppression and reinforces the foundational American value that liberty must be defended. In this respect, the bill has a positive impact on Individual Liberty.
• Personal Responsibility: The bill encourages Personal Responsibility by fostering a deeper understanding among students of the role individuals must play in resisting injustice and protecting vulnerable communities. By training educators and enhancing curriculum resources, the bill helps future generations appreciate the consequences of both action and inaction in the face of moral crises. This aligns with a society based on responsible, conscientious citizenship, making the bill’s effect on this principle positive as well.
• Free Enterprise: The bill has a neutral to slightly positive effect on Free Enterprise. It does not impose any new regulatory requirements on private individuals, businesses, or nonprofit organizations. Participation by Holocaust museums and other organizations in the grant program is voluntary, and there are no mandates that affect business operations, market conditions, or commercial activity. Thus, the bill respects the freedom of private actors while fostering public-private partnerships without coercion.
• Private Property Rights: The bill has a neutral impact on Private Property Rights. It neither infringes upon nor restricts property ownership, land use, or economic freedoms related to private property. The bill focuses exclusively on public education systems and voluntary collaborations, meaning property owners’ rights remain unaffected. Therefore, it neither strengthens nor threatens this core liberty principle.
• Limited Government: The bill violates the principle of Limited Government. It creates a new, ongoing grant program and appropriates taxpayer dollars (estimated at $1.3 million over the biennium) to fund new state-administered initiatives. Although the spending is targeted toward educational goals, it represents a permanent expansion of the Texas Historical Commission’s duties without adequate sunset provisions or spending caps. Additionally, the structure invites the risk of future program growth ("mission creep"), further expanding the role of the state in educational programming and grant administration beyond its proper constitutional limits. Thus, this bill substantially conflicts with the ideal of restrained, narrowly focused government.