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Every two years, the Texas Legislature convenes to debate the laws and regulations that shape the state’s economic and social landscape. The 2025 legislative session is one of the most significant in recent history, as policymakers grapple with issues ranging from economic deregulation and individual rights to government spending and legal liability.
At Texas Policy Research, we have conducted a full review of all 9,054 bills filed this session, analyzing the policy trends that will define the future of Texas governance. From reducing licensing barriers to addressing firearm regulations, civil liability reforms, healthcare access, and budget allocations, five major policy themes have emerged as defining issues for the state.
1. Occupational Licensing Reform: A Crucial Opportunity for Texas
In the 2025 legislative session, few issues carry as much urgency as occupational licensing reform. Texas has been ranked among the worst states in the nation for its burdensome licensing requirements, creating significant barriers for workers and entrepreneurs across multiple industries. At the same time, Texans overwhelmingly support regulatory reform, signaling an opportunity for lawmakers to address these long-standing issues.
Despite its reputation as a business-friendly state, Texas imposes licensing requirements on more occupations than many other states, often disproportionately affecting lower-income workers and small business owners. A recent analysis found that excessive licensing burdens cost the state billions in lost economic potential while discouraging workforce participation. Many of the professions regulated by Texas law—including barbers, cosmetologists, and landscape architects—do not pose significant risks to public safety, yet require extensive coursework, fees, and testing before individuals can legally work in their chosen fields.
Recognizing these barriers, Texas lawmakers have introduced over 180 bills aimed at reforming the state’s licensing system. These bills take different approaches, including:
- Eliminating licensing requirements for low-risk professions
- Expanding alternative certification pathways for workers
- Reducing fees and streamlining renewals for existing license holders
The strong public demand for reform is an important factor shaping this discussion. Polling shows that Texans across political and economic backgrounds support regulatory reform that makes it easier for individuals to enter the workforce and grow small businesses. In a state where economic freedom and entrepreneurship are key drivers of growth, lawmakers face intense pressure to remove unnecessary government roadblocks.
Moreover, this session presents a unique opportunity for meaningful change. With Texas’ strong economic performance and a budget surplus, lawmakers have the flexibility to reinvest in workforce development while reducing regulatory burdens. Proposals on the table range from targeted deregulation to broad licensing rollbacks, and the decisions made this session will determine whether Texas improves its standing in national rankings or continues to lag behind in regulatory efficiency.
This issue has drawn bipartisan interest, with conservative lawmakers advocating for deregulation as a means of promoting free enterprise and progressive voices supporting reform to expand economic opportunities for marginalized communities. While some industries have pushed back against proposed changes, arguing that licensing ensures quality and consumer safety, the Legislature appears poised to take significant action this session.
The outcome of these debates will have far-reaching consequences for Texas workers, businesses, and economic competitiveness. If meaningful reforms are passed, Texas could become a national leader in regulatory efficiency, opening the doors for thousands of workers who are currently locked out of professional opportunities due to excessive licensing laws.
2. Gun Rights & Firearm Legislation: Expanding Access or Strengthening Restrictions?
With 148 firearm-related bills filed, Texas lawmakers are once again at the center of a fierce debate over Second Amendment rights. The pro-gun faction in the legislature is pushing for expanded constitutional carry laws, the elimination of gun-free zones, and preemption of local firearm regulations to prevent cities like Austin and Houston from enacting stricter gun control measures. These bills reflect Texas’ deeply rooted gun culture and its commitment to protecting firearm ownership rights.
However, growing concerns over gun violence, school safety, and domestic incidents have led some lawmakers to introduce measures aimed at expanding background checks, implementing red flag laws, and restricting firearm sales to individuals with a history of domestic abuse or mental health concerns. While these proposals align with national trends seen in other states, they face stiff opposition from conservative lawmakers and gun rights groups.
The fight over local vs. state control is another key battleground. Some legislators want to strip cities and counties of the ability to regulate firearms, arguing that gun laws should be uniform across the state. Others argue that urban areas should have the flexibility to implement restrictions tailored to local safety concerns. As in previous sessions, Texas will likely remain one of the most firearm-friendly states in the country but compromises on mental health screenings and school security investments could emerge as the sticking points in debates.
3. Civil Liability & Lawsuit Limitations: Business Protections vs. Consumer Rights
The issue of civil liability and tort reform has been a long-standing debate in Texas, with 146 bills filed this session aimed at modifying lawsuit regulations. Texas has already enacted significant tort reform over the years, but business groups are pushing for additional legal protections to shield employers, property owners, and service providers from excessive litigation.
One of the key issues in this session is whether Texas should further cap damages in lawsuits, particularly in personal injury cases and class-action suits against large corporations. Proponents argue that limiting lawsuits will encourage business growth and lower insurance costs, while consumer rights advocates warn that such reforms could weaken accountability for corporate negligence.
Another significant debate involves legal immunity for businesses facing workplace safety lawsuits. Some lawmakers are pushing for protections for industries such as trucking, construction, and healthcare, shielding them from certain types of lawsuits. This has drawn pushback from labor groups and trial lawyers, who argue that these reforms prioritize corporate interests over worker and consumer protections.
With Texas’ pro-business legislative history, it is likely that some form of legal immunity expansion will pass this session, but expect heated debates over how much legal protection is too much.
4. Healthcare Workforce & Regulation: Addressing Provider Shortages
Texas continues to face severe shortages of healthcare providers, particularly in rural areas, making healthcare workforce expansion a top priority this session. With 142 bills focused on medical licensing, telehealth expansion, and workforce flexibility, lawmakers are looking for solutions to increase access to care while balancing quality and regulatory oversight.
One of the most controversial issues is whether nurse practitioners and physician assistants should be allowed to practice independently without direct physician supervision. Proponents argue that this would help alleviate doctor shortages and increase patient access, while medical associations strongly oppose these changes, citing patient safety concerns.
Another key area of focus is telehealth expansion, with lawmakers pushing to make pandemic-era telehealth flexibilities permanent. This could lead to broader virtual healthcare access, particularly for mental health and chronic disease management.
Expect incremental reforms that expand telehealth and modestly loosen restrictions on mid-level healthcare providers, but full independence for nurse practitioners is unlikely this session, based on how lawmakers have approached the issue in past legislative sessions.
5. State Budget & Taxation: Spending vs. Fiscal Restraint
The 2025 Texas legislative session is unfolding against the backdrop of a historic $332.9 billion budget proposal for the 2026-27 biennium. The budget reflects substantial spending increases in education, infrastructure, and public safety, while also incorporating some modest tax relief measures.
In addition to the budget proposal, the Texas Comptroller’s Biennial Revenue Estimate projects a strong budget surplus, providing lawmakers with additional flexibility to provide substantial tax cuts or fund critical priorities. This surplus has reignited discussions over how Texas should balance government spending and fiscal restraint.
Examining Texas’ government spending over time, the state’s budget has grown significantly across bienniums, beyond just population growth, inflation, and expanding state responsibilities. The question facing lawmakers this session is how to allocate funds in a way that maximizes economic growth while addressing an affordability crisis brewing across the state, infrastructure challenges stemming from a burgeoning population, and more.
Some of the key budgetary debates this session include:
- Property tax relief, particularly expanding homestead exemptions and capping local property tax increases
- Infrastructure investments, including major road projects, water management, and broadband expansion
- Public safety funding, including increased resources for law enforcement and disaster preparedness
The budget battle will ultimately determine whether Texas prioritizes low-tax, low-spending policies or makes historic investments in public services.
Conclusion: The Future of Texas Policy in 2025
The 89th Legislative Session will determine the future of occupational licensing, gun laws, business liability, healthcare workforce expansion, and state financial policy. As these bills move through the legislative process, Texas Policy Research will continue to provide in-depth analysis. Stay tuned for updates on how these critical policy battles unfold.
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