Gov.-elect Gina Hinojosa, the new Democratic majority in the Texas House, and the Republican-led Texas Senate have several big issues on their agenda when the legislature convenes in January. Hinojosa ran on regulating data centers and reversing Republican education policy, putting projects acro ss Texas and school choice vouchers that let families use tax dollars to pay for their children’s private schooling at the center of the debate. Hinojosa already said her transition team would be bipartisan. Democrats broadly also campaigned on establishing tighter guardrails on data center development, pulling back restrictions on consumable hemp products and lowering the cost of living in the state. Expanding Medicaid There are more than a dozen bills filed related to the expansion of Medicaid: HB 101, 102, 138, 141, 363 SB 31, 109 SJR 6: Relating to the expansion of eligibility for Medicaid to certain individuals under the federal Patient Protection and Affordable Care Act. HB 113: Relating to a “Texas solution” to reforming and addressing issues related to the Medicaid program, including the creation of an alternative program designed to ensure health benefit plan coverage to certain low-income individuals through the private marketplace; requiring a fee. HB 195: Relating to implementation of an express lane option for determining eligibility and enrolling certain individuals in Medicaid or the child health plan program. HB 251: Relating to Medicaid coverage and reimbursement for multisystemic therapy services. HB 389: Relating to the expansion of eligibility for Medicaid to certain women of reproductive age. HB 420: Relating to establishing a family health aide program to enable parents, legal guardians, or family members of certain Medicaid recipients to provide home health services to those recipients in coordination with private duty nursing services; requiring an occupational license. HB 473: Relating to the continuation of Medicaid eligibility of a woman following a pregnancy. HB 538: Relating to Medicaid coverage and reimbursement of doula services. HB 662: Relating to the provision of services or procedures by certain mental and behavioral health providers under Medicaid and reimbursement for those services or procedures. HB 725: Relating to the development and implementation of the Live Well Texas program and the expansion of Medicaid eligibility to provide health benefit coverage to certain individuals; imposing penalties. HB 748: Relating to peer support specialists for certain individuals with an intellectual or developmental disability and peer services for those individuals under Medicaid. HB 760: Relating to the reimbursement under Medicaid of local educational agencies for the provision of health care services to students. SB 136: Relating to Medicaid coverage and reimbursement for seizure detection devices and a public awareness campaign related to those devices. Texas is the most populous state not to allow Medicaid expansion under the Affordable Care Act. Expansion means the state would receive up to $10B a year; it would cover an additional million Texans. Before the ACA, Medicaid was mostly a health insurance program for poor children and the elderly. According to Cover Texas Now, an umbrella organization whose members include several health advocacy groups, expanding Medicaid in Texas would give U.S. adult citizens in a family of four making between $4,000 and $44,000 per year health insurance coverage. Texas AM’s Bush School of Government and Public Service estimates Texas loses more than $5 billion in new federal funding each year because it opted out of expanding Medicaid coverage. Data Centers There are several bills filed related to the data centers: HB 167, 408 681: Relating to the repeal of the exemptions from sales and use taxes for property used in certain data centers and large data center projects. HB 374: Relating to certain requirements applicable to governmental entities with respect to an agreement prohibiting the release of information regarding a data center project; providing a civil penalty. HB 529: Relating to water conservation plans, data center and related facility water use and wastewater reporting, water resource impact assessments, notice to local entities, public participation, and public disclosure; providing for enforcement and fees. HB 696: Relating to prohibiting certain governmental entities from entering into an agreement prohibiting the entity from releasing certain information regarding a data center project. HB 706: Relating to election and public hearing requirements before a municipality may enter into a data center development agreement under certain economic development programs HB 732: Relating to the ineligibility of certain data centers for state and local economic development incentives. HB 734: Relating to the public disclosure of local economic development agreements involving data centers. HB 750: Relating to the repealing of the sales tax exemption for data centers. SB 36: Relating to the eligibility of data centers and large data center projects to participate in certain incentive programs offered by the state and local governments. Gov.-elect Hinojosa called for a moratorium and new regulations on data centers until the legislature could pass laws giving local communities more control over construction. It’s unclear how long that pause could be. The NBC News Exit Poll found more than half of voters said AI and data centers were “a major factor” in their vote for Congress. Approximately 76% of respondents said they would oppose the construction of a data center in their community. Texas accounts for approximately 25% of planned data center capacity, according to Goldman Sachs. School Choice Vouchers There are several bills filed related to the private school voucher program (or education savings accounts): HB 164, 646, 675 735 SB 106: Relating to the repeal of the education savings account program. HB 324, 580: Relating to eligibility requirements for private schools to participate in the education savings account program. Supporters championed vouchers under the banner of “school choice,” arguing that parents could use the money to send their children to any private school they chose, giving them more control over their children’s education. But critics warn that vouchers drain funding from public schools, particularly in rural communities where many schools are already struggling financially. In September, a poll conducted by NBC Dallas-Fort Worth/Telemundo Station Group found that nearly two-thirds of Texas voters said they opposed using state dollars to pay private school tuition. And a recent state report revealed that 7 in 10 Texas students receiving vouchers previously attended private school or were homeschooled, adding to criticisms that the program was mostly benefiting families who could already afford those options. Gov.-elect Hinojosa said in her victory speech she still planned to fire Texas Education Agency Commissioner Mike Morath “on day one.” THC Rules There are two bills filed related to THC regulations: HB 330: Relating to the medical use of low-THC cannabis by patients with a medical condition that causes menstrual cramps. HB 507: Relating to drug testing and prescription drug policies for employees and independent contractors of state agencies and political subdivisions regarding the medical use of low-THC cannabis and hemp. Lt. Gov.-elect Vikki Goodwin, a Democrat, said she wants to redo regulations on THC after defeating vocal opponent Dan Patrick. Meanwhile, hemp retailers are suing the state health department, challenging the regulations that they said treat many hemp products like controlled substances. Gambling Gambling remains illegal in Texas, despite the prevalence of companies like FanDuel, DraftKings, Polymarket and Kalshi. Those companies argue they are trading platforms regulated by the federal government. The State of Utah charged executives at Polymarket and Kalshi with felonies to challenge that designation. It’s unclear whether the new Democratic Attorney General, Nathan Johnson, will seek to join lawsuits against gambling companies or push for legalization. The owners of the Dallas Mavericks, the Las Vegas Sands, are pushing for casino gambling as well. The Texas Constitution does not allow for casino gaming. Supporters would need two-thirds of the legislature to sign off on sending the idea to the voters. Then the voters must approve casino gaming in a statewide referendum. The 90th session of the Texas Legislature will convene Jan. 12. Democrats will elect a new leader for the Texas House Speaker. Democratic Rep. Senfronia Thompson, the longest-serving woman and the longest-serving Black legislator in any state, announced that she had enough votes to win the speaker’s gavel. Republicans remain in majority control of the Texas Senate. ...read more read less