Gov. Greg Abbott outlines emergency items in annual State of the State address

Texas Gov. Greg Abbott delivered his annual State of the State address at the Arnold Oil Company in Austin on Sunday night.

In his address, he outlined several emergency items he hopes to work with the Texas Legislature on during the 89th session. 

Abbott is looking to make investments in education, the state's water and energy supply and property tax relief, among other things.

The current session of the Texas Legislature began Jan. 14 and will run until June 2. 

WATCH HIS FULL ADDRESS BELOW:

Property Tax Relief

Abbott named property tax relief as one of his emergency items for this legislative session.

What they're saying:

"We know that many Texans face an affordability crisis. Last session, we slashed your property taxes. But for many Texans, those cuts were wiped out by local taxing authorities that hiked your property taxes even more. That must end this session," said Abbott.

The backstory:

Abbott says that since he became governor in 2025, he has worked on "significant property tax reforms", including:

  • Providing over $40 billion for property tax relief, including the largest property tax cut of $18 billion last session
  • Providing a tax rate compression framework for school district maintenance & operation (M&O) tax rates
  • Placing greater limitations on the amount of revenue cities, counties, and special districts can raise without Texans voting on it
  • Making property tax information readily available and accessible
  • Enabling voters to overwhelmingly approve increases to the homestead exemption, from $25,000 and $110,000 for Texas seniors
  • Cutting school district M&O tax rates by 10.7 cents
  • Increasing the Business Personal Property exemption to $2,500
  • Capping property value increases at 20% for properties up to $5 million

What's next:

Abbott says that he wants at least $10 billion in new property tax relief using part of the state's budget surplus and to ban "loopholes that increase your property taxes".

"No taxing entity should be able to raise your property taxes without a two-thirds approval by voters," said Abbott. "No approval, no new taxes."

Abbott is also looking to work with the legislature to:

  • Speed up tax rate compression to lower school district M&O tax rates, providing relief for ALL property taxpayers
  • Increase the business personal property tax exemption to $100,000 to support small businesses
  • Require all local bond issues and tax rate elections be on the November ballot and approved by a two-thirds supermajority of voters

Abbott also addressed housing affordability, saying that Texas needs to "make it easier to build, slash regulations, and speed up permitting." The governor also proposed a one-year tax exemption on home improvements, including heating and air conditioning.

A ‘Texas-size' investment in water

Abbott also wants to invest in the state's water supply, citing leaking and broken water lines in many communities and low water supply for agriculture in the Rio Grande Valley and West Texas.

What they're saying:

"Working with Senator Perry and Representative Cody Harris, we will put Texas on a path to have plenty of water for the next 50 years. We will make the largest investment in water in the history of Texas. We will tap into new water supplies and repair pipes to save billions of gallons of water each year," Abbott said.

The backstory:

Abbott says he has made investments to improve the reliability of the state's water supply, including:

  • Funding over $13 billion in low or no-interest loans to cities and water supply corporations to invest in water infrastructure through the State Water Infrastructure for Texas (SWIFT)
  • Dedicating an additional $1 billion to maintain existing and build new water infrastructure
  • Creating the New Water Supply for Texas fund, which funds innovative strategies to increase the state’s water supply in addition to managing and developing existing sources

What's next:

Abbott says he wants to work with the legislature to:

  • Make the one-time largest investment in water in Texas history, as well as dedicate $1 billion a year for 10 years to tap into new water supplies and repair existing pipes to save billions of gallons of water each year
  • Invest in new water supply strategies that develop resources like desalination and move water from areas of abundance to areas of need
  • Invest in existing programs to ensure rural communities throughout Texas have the necessary resources to maintain existing water supply systems
  • Create a long-term dedicated funding stream to invest in critical water infrastructure for future generations of Texans to have a reliable water supply

Education

As expected, Abbott addressed his plans for education, including increasing teacher pay, expanding career training, and school choice as emergency items on his agenda.

What they're saying:

"Texas is No. 1 in so many ways, like jobs, Tier One research universities, cattle and cotton, oil and gas, and we’re home to the largest medical center in the world. The list goes on. It is now time that we set our sights on another No. 1. Texas should be No. 1 in educating our children," Abbott said.

Abbott outlined three pillars to achieve this goal: empowered parents, exemplary teachers, and exceptional academics.

Increasing teacher pay

Teacher pay is one of Abbott's emergency items for the new legislative session, with the governor saying that Texas must "fund and train the best teachers" and also "must reward the best teachers by putting them on a path to earn a six-figure salary".

The backstory:

Abbott says that he has:

  • Created the Teacher Incentive Allotment program in 2019 to reward Texas’ best teachers by putting them on a path to earn a six-figure salary
  • Increased the average teacher pay to an all-time high of $62,474
  • Provided over $575 million in merit-based pay raises to more than 25,000 teachers through the Teacher Incentive Allotment
  • Invested over $500 million to enhance the state’s public school curriculum to give teachers more time to focus on instruction, support students, and reduce lesson planning burdens

What's next:

In order to increase teacher pay, he wants to:

  • Increase teacher salaries through a direct appropriation in teacher pay and other compensation strategies
  • Invest $750 million in 2026-2027 to expand the Teacher Incentive Allotment, bringing more teachers into the merit pay program sooner and increasing merit pay amounts overall
  • Waive fees for certification in high-need areas like special education and bilingual education
  • Help mitigate costs for districts that hire retired teachers
  • Invest in high-quality teacher preparation pathways, including Teacher Residencies, Apprenticeships, and Grow Your Own Programs
  • Increase the Mentor Program Allotment and develop a statewide mentor teacher training
  • Fund a statewide marketing campaign to recruit more teachers to the profession through high-quality pathways
  • Collect data regarding teacher retention and recruitment, including the classifications, grade levels, subject areas, duration, and other relevant data relating to vacancies in teaching positions and create a job board to address vacancies

He also wants to invest $500 million into school security.

Expanding career training

Abbott says that vital to education is expanding career training as "many of the most in-demand jobs are careers like welders, plumbers, and electricians". 

What they're saying:

Abbott highlighted a Central Texas teen in his speech, Raya Rabold of Jarrell.

"She took welding at Jarrell High School. After more training at Texas State Technical College, her welding work was featured in the "Yellowstone" TV show. She’s now working to become a welding inspector that earns as much as $85,000 a year. And she’s only 18 years old," Abbott said.

The backstory:

Abbott says that over the last two years, he has:

  • Awarded over $15 million in Jobs and Education for Texans grants to support career training for high-demand industries
  • Invested over $638 million to provide more Texans with the opportunity to gain the skills needed for good-paying, high-demand jobs
  • Provided over $7 billion in 2024-2025 for career and technical education programs for middle and high school students, including high-demand industries such as plumbing, electrical, and welding
  • Expanded workforce opportunities by creating the Rural Pathways Excellence Partnership and the Adult High School Charter Program

What's next:

Abbott says that by 2030, more than 60% of jobs in the state will require education or training beyond a high school diploma. However, according to him, less than 40% of Texas students attain a degree or workforce training within six years of graduating from high school.

In order to address this, Abbott is looking to:

  • Expand high-demand career training programs by increasing funding for the Jobs and Education for Texans grant program, Pathways in Technology Early College high schools, dual credit, and other career education allotments
  • Increase funding for the Rural Pathways Excellence Partnership program to support rural districts in expanding career training options for students and addressing regional workforce needs
  • Provide career and technical education funding for students enrolled in Junior Reserve Officers’ Training Corps (JROTC) programs
  • Improve career advising and provide funding for career readiness assessments to ensure students are recommended courses best aligned with their career goals
  • Invest in strategies to ensure students enter high school proficient in math and prepared to excel in career-aligned courses

School choice

As expected, Abbott addressed school choice, a cause he has championed before.

What they're saying:

"Government-mandated schools cannot meet the unique needs of every student. But Texas can provide families with choices to meet those needs. The majority of Texans support school choice. More than 30 states already have a form of school choice. We will continue to fully fund public schools and raise teacher pay, while also giving parents the choice they deserve," Abbott said.

READ MORE: Texas' battle over school choice continues | Texas: The Issue Is

Abbott also highlighted another Central Texas student in his speech: Jeremiah Kimmel of Bell County, citing him as a success of an ESA pilot program for special education students. Kimmel has autism.

"That program helped Jeremiah improve at school and in his daily life. His grandmother said it’s huge that she could have a say in the education that was right for Jeremiah," Abbott said. "Like Raya and Jeremiah, every child deserves the education that’s best for them. It’s time to expand that same opportunity to every Texas family."

The backstory:

Abbott says that in 2020, he launched the Parent-Directed Special Education Services, an education savings account pilot program for special education students. 

The next year, he says that a "bipartisan supermajority' expanded that program, which provides $1,500 in grants for tutors and other support services that help students thrive.

What's next:

With his school choice plan, Abbott wants to establish an Education Savings Account program with universal eligibility for all Texas schoolchildren and appropriate $1 billion for the program.

He adds that he wants to ensure participation in the program is "entirely voluntary" for families and schools. He is also looking to increase public school choice opportunities by increasing funding for open-enrollment charter school facilities, expanding virtual education options, and improving access to inter- and intra-district transfer.

Bail reform

Another of Abbott's emergency items this legislative session is bail reform.

What they're saying:

"To make our communities safer, we must eliminate parole for criminals convicted of child trafficking. We must deny bail to criminals charged with capital murder and other heinous violent crimes. Illegal immigrants who are arrested should be considered a flight risk, denied bail, and turned over to ICE," Abbott said. "Activist judges have too much discretion to let repeat offenders out on bail, only to see them harm more Texans."

Abbott highlighted the 2022 death of Harris County deputy constable Omar Ursin, who was shot and killed as he drove home after picking up food for his family. Two men were arrested in connection with his death, and according to Harris County Sheriff Ed Gonzalez, were out on bond stemming from separate murder cases.

The backstory:

Abbott says he has:

  • Prohibited criminals charged with a violent offense from being released on a personal bond
  • Required bail be set or denied within 48 hours of arrest and that criminal history be considered before setting bail
  • Required mandatory training for judges on their duties when setting bail
  • Required bond conditions be reported to give law enforcement the ability to apprehend offenders out on bail who are violating court orders
  • Created a state jail felony offense for tampering with an electronic monitoring device

What's next:

Abbott wants to pass a constitutional amendment to:

  • Require judges deny bail for violent offenders
  • Require bail be denied if an offender is accused of capital murder or a sexual offense involving a child

In Texas, the legislature can propose amendments to revise the Texas Constitution by a two-thirds vote of all members of each house. The proposed amendments then must be submitted for voter approval. If a majority of voters approve it, the amendment then becomes part of the state's constitution.

The Texas Cyber Command

Abbott says that he wants to safeguard "critical infrastructure" from hackers and hostile foreign actors.

To do this, Abbott wants to create the Texas Cyber Command in partnership with the University of Texas at San Antonio. The governor says San Antonio is home to one of the world's largest concentrations of cybersecurity experts.

What they're saying:

"We must harness those assets to protect against threats from China, Iran, Russia, and other foreign enemies. They could cripple our power, water, and communications with cyberattacks. We must use cutting-edge capabilities to secure our state," said Abbott.

What's next:

Abbott says that the Command will "create a robust strategy" for the state to:

  • Anticipate and detect potential cyber threats
  • Promote cybersecurity awareness, professional training, and other workforce-oriented measures
  • Prepare for cyberattacks through various exercises, pre-attack coordination and planning, and proactive collaboration with critical infrastructure partners
  • Defend against, respond effectively to, and mitigate against the effects of cyberattacks when they occur, working across the state and with relevant partners
  • Provide subject matter expertise, forensic analysis, and other support to conduct post-attack investigations and recovery efforts

The Command will also collaborate with all state universities and Regional Security Operation Centers, as well as local, state, and federal agencies.

Other topics

In addition to his emergency items, Abbott also mentioned:

  • Improving health care and mental health care
  • Adding more power to better fortify Texas's grid
  • Having Texas lead a ‘nuclear power renaissance' in the U.S.
  • Banning DEI in grades K-12 and in public universities
  • Eliminating parole for criminals convicted of child trafficking
  • Safeguarding elections and restoring power to the Attorney General to prosecute election violations
  • Firefighting and ensuring firefighters have the tools and funding they need
  • Needing stronger laws to immediately remove and prosecute squatters
  • His efforts at the border, including Operation Lone Star, border barriers and buoys and deployments of the Texas National Guard and Texas Department of Public Safety.

Texas Democratic Party responds

The other side:

The Texas Democratic Party responded to Abbott's State of the State address Sunday evening with a video of their own.

Chair Gilberto Hinojosa opened the video by saying that Abbott "doesn't have a clue of what the state of your state is" and calling the governor "too desperate cozying up to Donald Trump and billionaires like Elon Musk to give a damn about anybody who works for a paycheck to make ends meet."

The video response then pivoted to Dr. Austin Dennard, a Dallas ob-gyn who spoke about how Texas's abortion ban impacted her pregnancy in 2022.

"And in 2022, during my first trimester of pregnancy, my fetus received a fatal diagnosis. I knew that continuing the pregnancy was going to be too excruciating for me emotionally, and it was going to put my health and my future pregnancies at risk. But Texas abortion bans meant I could not get the care I needed here in my home. That the pregnancy that I was carrying was never going to be a brother to my two children, and he had no chance of survival outside my womb. But that didn't matter because of our state's Republican lawmakers. I had to leave my home and my family and travel across the country for the health care that I knew I needed to preserve my future fertility and my health," Dennard said.

She also said that OB-GYNs like her are leaving the state and medical students are turning elsewhere for training, saying that Texas's healthcare system is "falling apart".

After Dennard, the video showed union member Bobby Ramos in Houston, who spoke about the importance of energy production, including clean energy with wind and solar.

"Now is not the time to allow politics to hinder our progress. Texas wants to continue leading the nation in energy production. We must harness every bit of it that we can. Profits for a few billionaires shouldn't come at the cost of tens of thousands of excellent new union jobs for working people. So what's the state of my state? I'm tired of working people not being seen. We're out here building the future, and it would be nice to get some respect and support from the leaders of our great state," said Ramos.

The video then addressed Abbott's education plans with a statement from San Antonio elementary school teacher Dior Edison. She criticized Abbott's school voucher plan, calling it an "experiment that could ruin our public schools forever."

"Here's how it works. Private school vouchers take public money, your tax dollars, and send it to private schools. These private schools don't have to follow the same rules as schools like mine. They don't have to take all the kids. They don't have the same learning standards and they don't have to answer to taxpayers. Private school vouchers are not for most families. They're for wealthy families who already send their kids to private schools. The rest of us, we're left with fewer resources for the public schools our kids depend on," said Edison.

Edison said that if this plan passes, public schools will have less funding which will lead to bigger classes, lower teacher pay and fewer student resources, with disabled kids and kids in rural areas suffering the most.

"Instead of giving public money to private schools, we should fully fund public schools. That means paying teachers what they deserve, keeping classes small, and making sure that every kid has a chance to succeed no matter where they live or how much their family makes," said Edison.

Hinojosa then closed out the video, saying:

"While Abbott's billionaires are lining their pockets every day, our Democratic lawmakers in Congress and at the state capital are fighting back. And every day, our great democratic cities and counties are delivering results. That is why people want to live here. But Texas Democrats have a lot of work ahead to make good on the promise of our state and our country. Glad to have you in the fight with us."

Other Texas Democrats respond

What they're saying:

Some Texas Democrats also responded to the address, needling in on Abbott's education plans.

"We're going to go take people's hard-earned money and give it to rich people who didn't ask for it and don't need it?" said state Rep. Gene Wu (D-Houston). "How do you justify that?"

Democrats also noted that Abbott did not mention any additional funding for public school districts in his speech. Per-student funding from the state has not increased since the 2019 legislative session.

"The school system is about to collapse because of what Governor Abbott did last time," said Wu. "The funding that we're trying to push through to the schools to take care of their inflation issues to help them through the pandemic, that funding was killed by Governor Abbott."

While not an emergency item, Democrats also raised alarm bells with Abbott’s talk of further banning DEI in universities and K-12 schools.

"Besides being angry, we're going to have to work at other avenues to make sure that our diverse population is educated," said state Rep. Sheryl Cole (D-Austin).

The Source: Information in this article comes from Gov. Greg Abbott's Office, the Texas Democratic Party and past FOX coverage.

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