Texas
Texas Legislature is primed for red meat issues, but expect some bread and butter, too
AUSTIN – With Republicans firmly in control of the Texas Legislature, the 2025 session could offer plenty of cultural conflict issues that appeal to many GOP voters and activists, but lawmakers are also expected to mix bread and butter with their red meat.
Conversations with nearly a dozen lawmakers and legislative staffers indicate the session could focus on improving the state’s infrastructure and adding safeguards against ever-changing technology, including artificial intelligence.
Last week during a forum sponsored by the lobby group Professional Advocacy Association of Texas, the chiefs of staff for Gov. Greg Abbott, Lt. Gov. Dan Patrick and House Speaker Dade Phelan said the legislative session could largely involve bolstering the state’s infrastructure.
Here are some of the major issues lawmakers could tackle during their 140-day session, which starts in January.
Abbott says he has enough votes in the Legislature to approve a plan allowing Texas families to use public money to attend private schools. The proposal, which involves publicly funded education savings accounts, has been defeated in the Legislature by a bipartisan coalition of urban and rural legislators.
The fallout from this year’s hard-fought primary elections, in which Abbott used his resources to oust some House lawmakers who blocked his plan, has led proponents to predict a voucher-style program will pass next year. Such a plan could be joined with increased dollars for public schools and teacher pay raises, as some lawmakers against Abbott’s plan will work to get the best deal possible.
The emergence of a new House speaker could change the calculation in the House on school choice, particularly if blocking the proposal is part of a deal the new speaker makes with Democrats.
“Everybody knows what a priority that [school choice] is for the governor,” said Robert Black, Abbott’s chief of staff.
Other education issues could be top of mind for lawmakers, including discipline in public schools. Some teachers have complained that some students are increasingly out of control.
In 2023 Sen. Charles Perry, R-Lubbock, sponsored legislation that would allow a teacher to remove a student based on a single incident of unruly or disruptive behavior. The bill would have let schools suspend students for longer periods and kick them out of traditional public schools for a broader range of infractions.
Civil rights advocates argued that Perry’s proposal would have been a return to the kind of zero-tolerance discipline that disproportionately impacted children of color.
Black said he expected lawmakers to also deal with public school safety and workforce readiness.
Texas can expect another significant budget surplus, so Abbott and some lawmakers are pushing for another major property tax relief package. Last year, lawmakers — after contentious debate — voted for a historic $18 billion property tax cut. With a surplus projected at $20 billion, another relief package is likely.
Lawmakers could consider whether to stop linking public school funding to property taxes. That would provide additional relief but require an overhaul in the state’s approach to public school funding.
Since a 2021 winter storm left millions of Texans without power and water, lawmakers have made fixes to the energy grid. Expect more fortification next year as ERCOT’s meteorologist predicts an elevated chance for extreme weather this winter.
“People want to make sure we have a fortified grid,” said Darrell Davila, Patrick’s chief of staff.
Texas leaders want the grid to be protected against attack while meeting the demand created by data centers and rapid population growth.
Lawmakers could also move to address the state leaders’ need to make sure Texans will have enough water going forward, particularly with its massive growth. Part of the water problem is created by an aging infrastructure. It’s an issue that will take more than one legislative session to solve.
The emergence of AI means dramatic changes in how we live and conduct business, but the new frontier is fraught with risks and dangers. There’s already a special House committee looking into ways to make sure artificial intelligence is used properly.
“We also need to make sure our state is protected from cyberattacks,” Black said.
Access to health care in rural areas has been a growing problem that affects more than health. Small towns have become attractive for companies across the world looking to build plants and headquarters. Not addressing quality of life issues, including nearby hospitals and doctors, could cause potential suitors to look elsewhere.
According to the Texas Organization of Rural & Community Hospitals, Texas has had 26 permanent or temporary rural hospital closures since 2010, which leads the nation.
“The governor can’t go and sell bringing a manufacturing facility back from China to Texas if there is not water there and there is not a doctor to deliver a baby there,” said Mike Toomey, chief of staff for Phelan. “We have an obligation to help rural Texas.”
Texas is planning its grid around an unprecedented wave of AI-driven power demand that the state’s energy regulator says may not fully materialize on projected timelines.
In a recent filing to the Public Utility Commission of Texas, the Electric Reliability Council of Texas (ERCOT) projected statewide power demand could surge to nearly 368 GW by 2032 – more than four times the state’s current peak demand record of 85.5 GW. But the filing also contains an unusual warning from the grid operator itself.
“ERCOT has concerns with using the preliminary load forecast values for the Reliability Assessment and any other transmission and resource adequacy analysis,” the organization wrote in its April 2026 long-term load forecast filing.
The organization added that it may seek adjustments to the forecast based on “actual historical realization rates or other objective, credible, independent information.”
ERCOT has already begun adjusting for realization risk internally. In its 2025 long-term load forecast report, the grid operator said the “average peak consumption per site was 49.8% of the requested MW” and applied that factor to projected non-crypto data center load additions in some planning models.
ERCOT President and CEO Pablo Vegas said the forecast reflects “higher-than-expected future load growth” tied to changing large-load planning dynamics.
Texas has emerged as a hotspot for data center growth, with numerous new projects reshaping the energy market and challenging grid capacity. (Image: Alamy)
Texas Developers Race Ahead of Grid Capacity
Texas has emerged as a key data center market, driven by its abundant land, competitive energy prices, and favorable regulatory environment. This combination has positioned the state as a magnet for hyperscale operators and AI infrastructure investments. The state is estimated to account for around 15% of all data center connectivity in the US.
Recent and proposed AI data center campuses tied to OpenAI, Oracle, Meta, Crusoe, CoreWeave, Soluna, and other hyperscale operators are reshaping Texas grid planning. Developers have proposed large campuses across North Texas, Abilene, West Texas, and the Houston corridor, many requiring hundreds of megawatts of capacity and, in some cases, dedicated onsite generation to bypass interconnection delays. That buildout pushed ERCOT’s non-crypto data center forecast above 228 GW by 2032.
Developers are continuing to pursue Texas aggressively because ERCOT still offers faster timelines and more flexible market structures than many competing regions. Several proposed campuses pair AI infrastructure with onsite gas generation, colocated power assets, or flexible-load arrangements to navigate mounting transmission constraints.
Utilities across the US are grappling with AI-driven electricity growth, but ERCOT’s projections stand apart for both scale and uncertainty. PJM Interconnection, the nation’s largest grid operator, expects summer peak demand to climb above 241 GW over the next 15 years as data centers and electrification expand. ERCOT, by contrast, projects demand potentially reaching nearly 368 GW by 2032, driven largely by proposed non-crypto data center loads. At the same time, the grid operator openly questions how much of that demand will materialize on schedule.
Bigger Than Texas
Similar pressures are emerging elsewhere. In California, CAISO’s latest transmission plan cited “data center load growth” as a driver of major grid upgrades and described interconnection volumes as “unmanageable” before recent queue reforms.
A recent Grid Strategies report reached a similar conclusion nationally, warning that the “data center portion of utility load forecasts is likely overstated by roughly 25 GW” compared with market-based deployment estimates.
Ihab Osman, an independent strategist specializing in data center and other mission-critical infrastructure, said the distinction is less about “real” versus “fake” AI demand and more about “announced versus deliverable demand.”
“A large share of the current AI/data center planned load should be treated as paper megawatts until it is validated through physical gates,” Osman said, citing factors including site control, transmission deliverability, generation availability, turbine and transformer supply, permitting, financing, and credible energization schedules.
Osman said ERCOT’s forecast is best understood as “a stress-test map, not as a fait accompli build map.”
Separating ’Paper Megawatts’ From Real Demand
The filing shows Texas regulators and grid planners struggling to distinguish operating AI infrastructure from a rapidly expanding pipeline of proposed projects.
“The vast majority” of ERCOT’s projected load growth comes from submissions provided by transmission and distribution utilities, according to the filing. Those requests include hyperscale AI campuses, GPU clusters, and other large industrial loads seeking future grid capacity reservations.
Alison Silverstein, a former senior adviser to the chairman of the Federal Energy Regulatory Commission, said “a large proportion” of projects in ERCOT’s large-load interconnection queue have already been canceled, particularly among smaller developers facing long interconnection delays and high turbine and transformer costs.
Forecasts Collide With Physical Infrastructure Limits
ERCOT has also signaled that many projects may not materialize on the timelines shaping transmission planning.
The grid operator said summer 2026 peak demand is likely to land between roughly 90.5 GW and 98 GW – far below the preliminary 112 GW figure embedded in the long-term forecast. ERCOT said it appears “unlikely” that new large-load projects and existing site expansions will ramp quickly enough to push demand that high this year.
The filing suggests uncertainty around AI-related load growth is beginning to influence broader infrastructure planning assumptions. By 2032, ERCOT projects non-crypto data centers reaching 228 GW of demand, compared with just 9 GW from cryptocurrency mining and roughly 3 GW each from hydrogen/e-fuels and oil-and-gas-related industrial growth.
The move also suggests the regulator is no longer simply forecasting AI-driven growth, but also working to determine how much of the proposed boom can actually be financed, supplied, interconnected, and energized before utilities commit billions to long-lived infrastructure.
AUSTIN, Texas — Bravo is developing a new reality series set in the Texas Hill Country, the network announced on Instagram Monday.
“Secrets, Lies, Texas Wives” would follow a group of women in Boerne.
According to the network’s description, the series centers on “a tight-knit circle of glamorous women” navigating family life, ranching, and social obligations in a community rooted in rodeo and tradition. They promise drama with “forbidden romances” and relationship angst.
No premiere date or cast have been announced.
If picked up, the series would join Bravo’s long-running portfolio of region-specific reality franchises, which includes the “Real Housewives” lineup.
AUSTIN, Texas — With the average price of a gallon of gas in Texas topping $4, some leaders from Austin to Washington, D.C., are backing a temporary pause on gas taxes as a way to deliver relief.
Veronica Valdez Rodriguez was pumping gas at a southeast Austin station on Tuesday. She said the rising costs are becoming unmanageable.
“They’re sky high,” Rodriguez said. “I can barely get by, you know? It’s too expensive.”
She said she is spending $40 more every week on gas.
According to AAA Texas, the average cost of a regular gallon of fuel stood at over $4.01 in the Austin area on Tuesday, $1.24 higher than the average one year ago.
President Donald Trump said he is working to pause the federal gas tax, which is 18 cents per gallon.
A reporter asked the president on Monday how long the tax would be suspended.
“Until it’s appropriate. It’s a small percentage, but it’s, you know, it’s still money,” Trump said.
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In Texas, an 18-cent-per-gallon pause could add up to savings of about $2 to $3 on an average tank of gas.
Support for a federal pause is coming from both parties. State Rep. and U.S. Senate nominee James Talarico (D-Austin) backed the idea last month.
“Lowering prices at the pump should be a bipartisan commitment,” Talarico said in a statement Monday.
Republican U.S. Sen. John Cornyn said he didn’t know the details of the president’s plan.
“There’s a difference between a temporary suspension and a permanent suspension,” Cornyn said Monday. “I don’t know exactly what the President has in mind. I think a temporary suspension getting through this sort of bumpy time because of uncertainty about energy prices, I can live with that.”
Democratic gubernatorial candidate Gina Hinojosa is calling for a state gas tax pause as well. The state tax currently sits at 20 cents per gallon, according to the Texas Department of Transportation.
The state pause is also being urged by Texas Agriculture Commissioner Sid Miller, who has called on Governor Greg Abbott to act.
“Governors in Indiana, Georgia, and Utah have already stepped up to provide relief for their citizens, and I once again renew my call for Governor Abbott to follow the lead of President Trump and act decisively for Texas families,” Miller wrote on Monday.
The governor’s office, however, said a state gas tax pause is not an option under his executive authority.
In a statement, the governor’s press secretary, Andrew Mahaleris, wrote in response to Miller:
There’s a reason Sid Miller lost his election, it’s because he doesn’t shoot straight with Texans. Any suggestion that the Texas governor is authorized by law to suspend a gas tax is entirely uninformed or purposefully misleading. If the Texas governor could suspend taxes, he would have suspended the property tax years ago.
At the federal level, the Bipartisan Policy Center said a gas tax holiday would require an act of Congress. The group also estimated that a five-month pause could cost as much as $17 billion.
Some drivers, like Rodriguez, said any break would help.
“Pause the taxes!” she said.
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