Texas
The Texas business boom
Texas has seen an economic boom over the past few years with gross domestic product (GDP) growth rates significantly outpacing the U.S. average, while a string of major corporations have announced they are moving their corporate headquarters to, or investing heavily in, the Lone Star State.
Speaking to Newsweek, several experts on the Texan economy or politics attributed this primarily to low taxation and business-friendly regulations. However, two warned there could be a future clash between corporate interests and the social conservatism of Texas Republicans who control both chambers of the state legislature as well as the governor’s office.
Business Investment
On February 18, KFC, the fast-food giant formerly known as Kentucky Fried Chicken, became the latest company to announce they are moving their headquarters from Louisville, Kentucky, to Texas choosing Plano, a city on the northern outskirts of Dallas. Speaking to Newsweek, David Gibbs, chief executive officer of KFC’s parent company Yum! Brands, said the move would “position us for sustainable growth” and “help us better serve our customers, employees, franchisees and shareholders.”
Earlier in February, real estate listing website Realtor.com announced it was transferring its corporate headquarters from Santa Clara, California, to Austin, with the company telling Newsweek the city would become “its top hiring location.”
In July 2024, billionaire Elon Musk announced he was moving the headquarters of X, formerly Twitter, and SpaceX to Texas in response to California Governor Gavin Newsom approving a move that stopped teachers being required to inform parents if their children change their gender identity.
In an X post, Musk wrote: “This is the final straw. Because of this law and many others that preceded it, attacking both families and companies, SpaceX will now move its HQ from Hawthorne, California to Starbase, Texas.”
Musk is now a close ally to President Donald Trump and heads up the recently formed Department of Government Efficiency (DOGE).
Financial services company Charles Schwab Corp. was based in San Francisco until 2021 when it shifted its headquarters to Westlake, Texas. In August 2024, oil giant Chevron announced it was moving its headquarters from San Ramon, California, to Houston.
Earlier this month, Apple announced it will build a new 250,000-square-foot manufacturing facility in Houston to support its “personal intelligence system” as part of a wider $500 billion investment across the U.S.
Texas’ plentiful land and relatively cheap energy have also made it a favored location for the large data centers used to power artificial intelligence (AI). In January, Trump announced Stargate, a combined $500 billion venture involving OpenAI, Oracle and SoftBank, which will be centered around the Lone Star State.
Texas Predicted to Be Biggest U.S. State by 2045
According to figures from the Texas Comptroller’s Office in 2024, the Texan economy grew by 4.8 percent, double the 2.4 percent that Commerce Department data shows was achieved by the nation as a whole.
U.S. Census Bureau figures show that between July 2023 and July 2024 the population of Texas rose by 562,941, with new residents attracted by the availability of work and low taxation. This gave Texas an annualized growth rate of 1.8 percent, the third highest in the U.S. behind Florida and the District of Columbia.
A report released by Realtor.com in February concluded that in 2045 Texas’ population will have surged by 35 percent to 42 million, up from the current 31 million, and would replace California as the most populous state.
Photo-illustration by Newsweek/Getty
Taxation and Regulations
Texas is just one of nine states across the U.S. that doesn’t charge any income tax on individuals or companies below a certain revenue ceiling, while its business tax rate is low and falls to zero for companies below a certain threshold.
According to a 2024 study published by Realtor.com, Texas accounted for 15 percent of new housing permits issued across the U.S., despite only making up 9 percent of its population, helping to keep prices and rents relatively cheap despite the rapid inflow of people.
Professor Benjamin Powell, an economist who teaches at Texas Tech University, attributed the state’s thriving economy to a comparatively low cost-of-living, low taxes and less stringent regulation.
“Companies are fleeing high tax, high regulation, high cost states like California, New York, and Illinois,” he told Newsweek. “They are attracted to Texas because we have lower taxes and regulation, and their workers face a lower cost-of-living here than in those other states.”
Professor Jon Taylor, a state politics expert who teaches at the University of Texas at San Antonio, agreed with this assessment, telling Newsweek: “The governor regularly preaches that corporations are relocating or building new capacity would tell you that it’s because of the so-called ‘The Texas Miracle,’ which drives perceptions that we’re a business-friendly state. He’s not wrong about the business-friendly part. We are.”
He continued: “We can rattle off the usual bullet points about a strong economy with no state income tax, relatively minimal business regulations (particularly for limited liability companies), a burgeoning talent pool created a number of world class research universities, and a leader in energy, space exploration, artificial intelligence, and tech manufacturing. Those bullet points have convinced a number of large corporations to relocate or develop facilities in Texas during the past decade or more.”
Joshua Blank, who heads the Texas Politics Project at the University of Texas at Austin, told Newsweek: “Texas politicians are pretty consistent, and aggressive about branding Texas as a pro-business state. And after over 20 years of Republican control, the rhetoric’s been followed with years of legislative and executive actions that are directly intended to be friendly to business.”
In a statement provided to Newsweek, Andrew Mahaleris, Texas Governor Greg Abbott’s press secretary, said: “Companies keep moving here because in Texas, we move at the speed of business by cutting red tape and protecting industry from harsh job-killing restrictions and unnecessary regulations that can burden innovators elsewhere.
“Texas is the 8th largest economy in the world and the economic engine of the nation, leading all states for jobs added over the last 12 months(…)
“Texas remains number one because people and businesses are choosing our state over any other for the unmatched competitive advantages we offer: no corporate or personal income taxes, a predictable regulatory climate, and a young, skilled, diverse and growing workforce.”
Political Concerns
Taylor warned of a potential upcoming clash between the values of companies moving to Texas for business reasons and the state’s social conservatism.
Referring to states making the move, he said: “Question is whether they’re comfortable moving to Texas and investing long-term given issues such as the state’s draconian reproductive choice laws, limits on voting accessibility, dismantling diversity, equity, and inclusion policies, attacks on environmental, social, and governance standards, and harsh immigration policies.”
This question was also raised by Blank, though he was more optimistic on the outcome.
“As more companies, and especially more high-tech companies, move to Texas, it does raise the question of whether Texas’ conservative politics will clash with a potentially less conservative workforce,” he said. “So far, Texas’ politics hasn’t led companies to reconsider their decisions, and it doesn’t seem likely to in the future.”
Powell said that many of those moving to Texas actually share the state’s dominant values.
“Some Texans worry that these interstate migrants will bring their liberal values and politics with them to Texas, but the opposite seems to be the case,” he said. “The Californians leaving for Texas often share more political values with Texans than they do with other Californians.”
Texas
Live results: Texas state Senate runoff
Democrats are hoping for an upset in a special runoff election for a state Senate seat in Texas on Saturday.
Democrat Taylor Rehmet, a local union leader, is facing off against Republican Leigh Wambsganss, a conservative activist in the Fort Worth-area district.
Though the district is reliably red, Rehmet did better than expected in the November election that led to the runoff, fueling some GOP concerns.
Follow Decision Desk HQ’s live results here.
Copyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Texas
We recommend in the Republican primary for Texas House District 106
In a three-way Republican primary race to represent parts of Denton County, state Rep. Jared Patterson gets our recommendation.
Patterson is now a well-established legislator, and he’s attuned to the concerns of his constituents in a district that has become symbolic of the economic boom in North Texas and the growing pains that come with it.
Texas House District 106 in eastern Denton County includes parts of Frisco and Denton as well as Aubrey, Celina and Little Elm. It is still growing fast, and the infrastructure can barely keep up with this fast change.
Patterson led the Legislature’s efforts to hold Big Tech accountable in 2025. He championed a bill that would have prohibited children from creating social media accounts and required tech companies to verify the age of new users. This editorial page supported the effort.
House Bill 186 passed with bipartisan support but stalled in the Senate. Patterson, 42, wants to bring this legislation back if he gets reelected. Political momentum may be on his side as evidence grows about the real harm that social media inflicts on children.
We have disagreed with Patterson over the years and found that some of his legislation sowed divisiveness. Still, his advocacy for children’s online safety is undeniable, and through this important cause, he has used his voice to unite people. As he puts it, this isn’t a red vs. blue bill.
While many candidates in the GOP are talking about getting rid of property taxes, Patterson took a more measured view and insisted on lowering taxes by looking at compression in school district tax rates as one approach to ease the tax burden.
Patterson voted against Senate Bill 840, a piece of legislation that this editorial page backed as an imperfect but necessary policy tool. The law allows residential construction in commercially zoned districts by right in large cities. Patterson told us that the legislation was not the right choice for cities like Frisco.
Another major issue in House District 106 is infrastructure. As massive construction work continues on U.S. Highway 380, Patterson, who serves on a committee on transportation funding, told us he wants to secure financing for farm-to-market roads that urgently need expansion.
Also running are Rick Abraham, a retired systems engineer, and Larry Brock, a retired Air Force officer who was convicted on charges related to the Jan. 6, 2021, attack on the U.S. Capitol.
Abraham, 57, also shares Patterson’s concerns with rising property taxes and other challenges in his district. However, he was thin on specific policy ideas.
Texas
Sen. Ted Cruz pitches 2026 Texas Senate race while steering most donations to his campaign
WASHINGTON – It starts as an urgent warning.
Texas’ primary is speeding closer, Sen. Ted Cruz says, the nation is watching and Republicans need to get off the sidelines to win in 2026.
Later come buttons to make a donation, a familiar step in fundraising emails. The pitch reassures your money will help both Cruz and the future Republican nominee for the U.S. Senate in Texas, a two-for-one play to counter Democrats.
If you stop to click on a small-type link for additional details, the math appears. With a $100 donation, $1 is dedicated to a new fund for whoever wins the GOP nomination.
The rest, $99, goes to Cruz’s campaign account, unless donors change the allocation.
Cruz’s recent appeal to conservative donors is a staple of modern campaign fundraising emails, with preset donation amounts, flashing buttons and fine print dividing contributions.
The approach is legal and reflects the growing prevalence of aggressive political email appeals that critics say are often manipulative.
Cruz’s effort has stirred questions in Washington, with early donations meant to fully help the nominee largely being steered to Cruz.
Some election law experts called it deceptive, trading on concerns about the Texas Senate race to benefit Cruz, who is not on the 2026 ballot but has been mentioned as a presidential contender in two years.
Attention over campaign money is even sharper this cycle because of the high-profile, high-spending Republican primary among Sen. John Cornyn, Attorney General Ken Paxton and U.S. Rep. Wesley Hunt of Houston.
“Cruz is basically diverting money away from the Cornyn-Paxton race for his own personal ambition,” said campaign finance lawyer Brett Kappel, a former legal counsel to three presidential campaigns.
Cruz spokesperson Macarena Martinez dismissed that, saying his outreach is aimed at keeping Texas Republican and ensuring a GOP victory in November.
“No Republican in the country has devoted more time and spent more money to elect Republican senators and House members than Sen. Cruz,” she said.
She said any criticism of Cruz’s appeal “conveniently ignores the well-known fact that this standard split is routinely used by both Democrats and Republicans when a campaign pays the cost of a digital solicitation.”
The Cornyn, Paxton and Hunt campaigns declined to comment on Cruz’s fundraising approach.
U.S. Sen. John Cornyn, R-Texas, is seeking reelection to a fifth six-year term. He faces primary challenges from U.S. Rep. Wesley Hunt, R-Houston, and Texas Attorney General Ken Paxton. The Associated Press
GOP cash concerns
Cruz’s pitch doesn’t mention Cornyn, seeking a fifth six-year term, or his two prominent challengers in the March 3 matchup.
It does single out U.S. Rep. Jasmine Crockett of Dallas, who is competing with state Rep. James Talarico of Austin for the Democratic Senate nomination.
Cruz compares Crockett, known for her confrontational political style, to Rep. Alexandria Ocasio-Cortez of New York, a frequent conservative target often referred to by her initials.
“In fact, Jasmine Crockett — the Democrats’ AOC of Texas — has ALREADY crossed the 50% threshold for the Texas Democrat Senate Primary in a new poll just released,” Cruz says in the pitch. ”We desperately need to boost our numbers.”
The Lone Star State is critical, Cruz tells prospective donors, because it is among the earliest in the country and Democrats are fired up.
“The nation will be watching to see if the Democrats CRUSH us in voter turnout like they did in every special election of 2025 – OR if Republicans finally got off the sidelines and came out on top on DAY ONE,” Cruz warns.
His pitch includes a survey asking about voting history, feelings toward the Trump administration and various policy positions.
Its final query is: “Given Texas’ first-in-the-nation primary standing for 2026, will you make a contribution to the NEWLY ESTABLISHED Texas Nominee Fund to fight for victory earlier than ever before?”
Recipients are presented with amounts ranging from $23 to $7,000, which is the combined primary-and-general maximum contribution allowed per election cycle from one individual to a campaign.
For each, Cruz gets 99%, and the eventual Senate nominee gets 1%, unless the donor manually changes the automatic split.
The appeals are legal and Cruz could share donor contact information with the GOP nominee. Early cash is seen as important for advertising and organizing ahead of the general election.
Polling points to a likely May runoff, a prolonged fight that could leave the Republican winner short on funds and give Democrats a head start.
Cruz’s 99-1 split, though not unprecedented among fundraisers, has drawn notice in political circles. Every GOP dollar the national party puts into Texas for the general election is one that isn’t being spent in battleground states.
Other Cruz fundraising pleas have used different breakdowns. In one he sent on behalf of Alaska Sen. Dan Sullivan, a Republican, the default split is 50-50.
Federal Election Commission records show the Texas nominee-to-be-named-later fund was created in mid-December and had collected $190.17 by the end of the year.
Fund scrutiny
Kappel, the campaign finance lawyer, said both parties commonly use such funds to raise general election money during primaries, but called Cruz’s pitch misleading.
”Potential donors will think that they are giving to the currently unknown eventual Republican Senate candidate when, in fact, almost all of the funds will go to Cruz,” he said.
Some of the money Cruz is collecting with his current fundraising appeals could be used for a presidential campaign, subject to other federal fundraising limitations.
Cruz, who ran for president in 2016 and lost the primary to Donald Trump, has not said whether he plans another bid, though some Republicans see him as a possible 2028 contender.
Nancy Bocskor, a former GOP fundraiser and former director of what is now the Center for Women in Government at Texas Woman’s University, said manipulative fundraising pitches have become common.
Bocskor, who now teaches at George Washington University’s Graduate School of Political Management, said many donors will be motivated to help Republicans keep the Senate seat in Texas, without realizing 99% of their contribution is going to Cruz and not the 2026 nominee, she said.
She described Cruz’s pitch as legal – and distasteful.
“It’s a lack of transparency that preys upon primarily older donors,” she said.
Common tactics
Supporters of both parties now regularly receive urgent fundraising emails designed to draw in small-dollar donations, a significant part of how political candidates and parties pay for campaign operations and political advertising blitzes.
A Princeton University study analyzing more than 300,000 political emails from Democrats and Republicans during the 2020 election identified subtle ways senders get recipients to open and engage.
“Manipulative tactics – techniques using some level of deception or clickbait – are the norm, not the exception,” researchers found.
Cruz is not the only one to use a model with a default 99-1 split.
An appeal by Sen. Tim Scott, R-S.C., shares proceeds with Cruz but directs 99% to Scott.
The National Republican Senatorial Committee has sent appeals that share proceeds with individual candidates, such as Cornyn, with default settings that give 99% to the NRSC.
The committee is supporting Cornyn and money from the joint appeal could be spent on his behalf.
With the primary just weeks away, Texans can expect no letup in fundraising appeals from all sides in a race projected to top $300 million in spending by its end in November.
Fundraising fine print
HOW IT WORKS: Texas Sen. Ted Cruz’s fundraising appeal highlights the 2026 Senate race on behalf of the eventual GOP nominee but defaults donations so 99% goes to his campaign unless donors click through fine print.
HIGH STAKES: Campaign finance experts say early money that could help the Senate nominee mostly is being diverted to Cruz.
THE PUSHBACK: Critics call the setup deceptive, saying preset amounts, fine print and urgency push quick donations that mask the uneven split.
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