Texas School Vouchers, THC Ban, Tax Cuts & More: Full Breakdown of 2025 Legislation

  • Sean Chalaki
  • June 30, 2025
  • Knowledge Base
Texas School Vouchers, THC Ban, Tax Cuts & More: Full Breakdown of 2025 Legislation

The 89th regular session of the Texas Legislature ended on June 2, 2025, closing out 140 days of intense lawmaking that touched nearly every corner of life in the state. From education and property taxes to bail laws, housing policy, and cannabis regulation, lawmakers advanced a broad slate of conservative priorities, many of which will reshape public services, individual rights, and the business climate for years to come.

Unlike the walkouts, delays, and impeachment proceedings that bogged down recent sessions, this year’s Legislature functioned with relative efficiency. Republican leadership, under Governor Greg Abbott, Lieutenant Governor Dan Patrick, and House Speaker Dustin Burrows, worked in lockstep to deliver legislative wins on nearly every item of their joint agenda. Democrats, meanwhile, fought a defensive battle, securing just a few policy victories while managing to slow or block some of the more sweeping proposals. As the dust settles, here is a detailed look at the laws passed during the 2025 session, what drove them, and how they may affect the lives of Texans.

Education 

After years of political gridlock, Texas has officially adopted a school voucher program. Senate Bill 2 creates a $1 billion fund that allows eligible families to use public dollars for private school tuition or homeschooling costs. The program will launch in the 2026–2027 school year. Critics warn it may divert needed resources from public schools, especially rural and lower-income districts where private alternatives are limited or nonexistent.

In exchange for passing vouchers, lawmakers approved House Bill 2, which delivers an $8.5 billion infusion into the public school system. That money will support teacher salaries, school safety, special education, and early learning programs. But education advocates caution that while the funding is significant, it does not fully address ongoing inflationary pressures or the deep funding deficits that districts have faced in recent years.

Cannabis Policy 

One of the most controversial bills passed this session is Senate Bill 3, which bans hemp-derived THC products such as edibles, vape oils, and infused drinks. While lawmakers framed the bill as a response to the unregulated sale of psychoactive substances in gas stations and smoke shops, the move threatens an entire industry built around hemp legalization in 2019. More than 8,000 retailers across Texas now face closure or disruption, and veteran groups and medical users have flooded the governor’s office with veto requests.

At the same time, legislators passed a separate measure expanding the state’s narrow medical marijuana program. The bill will increase the list of qualifying medical conditions and allow more licensed dispensaries to operate, potentially improving access for patients with chronic conditions. Still, these expansions do not offset the sweeping reach of the THC ban, which many see as a step backward in cannabis reform.

Governor Abbott has remained silent on whether he will sign or veto SB 3, leaving the industry in limbo.

Bail Laws and Pretrial Detention 

Texans will vote this November on Senate Joint Resolution 5, a constitutional amendment that would allow judges to deny bail to people accused of violent crimes. Currently, the Texas Constitution guarantees a right to bail in nearly all cases except capital murder or select repeat offenses. If voters approve the change, judges will have broader discretion to detain defendants pretrial, which is a shift critics say risks undermining the presumption of innocence.

Meanwhile, Senate Bill 9 restricts who qualifies for a no-cash bond, tightening eligibility across the board. Though harsher proposals, such as automatic detention for undocumented individuals accused of crimes, were blocked in the House, the overall direction of reform this session favored greater pretrial detention and fewer release options for defendants.

Gambling and the Texas Lottery 

Efforts to expand gambling, whether by legalizing casinos or authorizing online sports betting, died without a hearing. In fact, lawmakers moved in the opposite direction. Senate Bill 3070 eliminates the use of online couriers for purchasing lottery tickets and abolishes the Texas Lottery Commission altogether, transferring oversight to a new agency. The bill places the state’s lottery under Sunset review in 2029, raising questions about the long-term future of the game.

This signals a continued reluctance among Republican lawmakers to expand gambling access in Texas, despite mounting public interest and growing participation in illegal offshore platforms.

Water: Preparing for Scarcity With Long-Term Investment

With much of Texas facing drought conditions and aging water infrastructure, lawmakers passed Senate Bill 7 and House Resolution 7, which together establish a dedicated fund to invest $1 billion per year in water infrastructure for the next two decades. Projects eligible for funding include desalination, pipeline repair, aquifer storage, flood mitigation, and conservation.

These measures reflect the state’s growing awareness of water scarcity as both an environmental and economic risk. However, the funding plan must be approved by voters in the upcoming election. A separate bill to create a fund for groundwater research, which is an issue particularly relevant to agricultural and rural communities, failed to pass.

Religion in Public Schools 

Two laws passed this session will place Christian religious content more prominently in public schools. Senate Bill 10 mandates that all public school classrooms display a copy of the Ten Commandments in a 16-by-20-inch poster. Senate Bill 11 requires school boards to vote on offering a daily period during which students and staff may pray or study religious texts. These measures build on a 2021 law requiring schools to display “In God We Trust” signs and have already drawn legal threats from civil liberties groups. Litigation is expected.

Transgender Rights 

The Legislature passed a bill that redefines male and female solely in terms of reproductive anatomy. The implications are wide-ranging: the state may now refuse to recognize amended driver’s licenses, medical records must reflect assigned sex at birth, and insurance companies must cover “detransition” care if they offer gender-affirming services. Additionally, a law passed this session protects parents from child abuse accusations if they do not affirm their child’s gender identity. A controversial “bathroom bill” requiring state building access to be based on birth sex failed to clear the House, but the policies that did pass have already sparked concern among advocacy groups and legal scholars.

Abortion: Limited Clarity, Not Broader Access

In the wake of at least three maternal deaths linked to delayed emergency care, lawmakers passed a narrow clarification to Texas’s abortion ban. The new law affirms that doctors may perform life-saving abortions even when a patient’s death is not imminent, which is a change meant to provide clearer legal protections for physicians. The law does not expand access to abortion more broadly. Cities are now barred from using funds to support travel for out-of-state procedures, and efforts to restrict abortion pill access failed to gain traction.

Vaccines: Expanded Exemptions and New Consent Rules

Texas continues to move in the direction of greater individual leeway around vaccination. House Bill 1586 allows parents to print exemption forms at home instead of waiting for mailed copies from the state. Public health experts warn this may increase opt-outs and contribute to outbreaks of vaccine-preventable diseases, such as the ongoing measles outbreak in West Texas.

Two other bills passed: one protects patients from being denied organ transplants based on vaccination status; another requires healthcare providers to obtain detailed informed consent before administering COVID-19 vaccines, including disclosure of risks and instructions on reporting complications.

Property Taxes 

Texas voters will also be asked in November to approve a massive property tax relief package. If approved, the state’s homestead exemption will rise from $100,000 to $140,000, with larger exemptions for seniors and those with disabilities. Additionally, businesses will be exempt from paying taxes on the first $125,000 of inventory.

Altogether, lawmakers committed $51 billion to tax relief. While the immediate effect for homeowners and small businesses could be significant, some analysts caution that the cost may be difficult to sustain in future budget cycles.

Housing 

Housing affordability has become a growing concern in Texas, particularly in urban areas. Lawmakers responded by passing bills that make it easier to build smaller homes on smaller lots, promote mixed-use development near retail corridors, and limit residents’ ability to block new housing projects through zoning fights.

However, more ambitious proposals—such as allowing accessory dwelling units in single-family zones or permitting churches to build housing on their land—did not advance. The state’s housing policies are moving incrementally, but the underlying crisis continues to escalate.

DEI Restrictions in K-12 

Senate Bill 12 prohibits DEI (diversity, equity, and inclusion) policies in K–12 hiring, staff training, and student club formation. It bans school-sponsored organizations based on sexual orientation or gender identity and requires parental consent for club participation.

The law also allows parents to file complaints if they believe a district is in violation. While some amendments were proposed to protect teacher autonomy or require instruction on difficult historical subjects, those measures failed.

Universities 

Lawmakers expanded their control over public higher education. Senate Bill 37 gives politically appointed regents, rather than academic experts, the authority to approve courses, oversee academic hires, and investigate university activities. Senate Bill 2972 allows regents to designate protest zones and prohibits noisy or masked demonstrations on campus.

A separate bill to eliminate in-state tuition for undocumented students gained support but did not make it to a vote. Nonetheless, the direction of legislative oversight now signals less institutional autonomy and greater political scrutiny of public universities.

The 2025 legislative session was one of the most consequential in recent Texas history. Voters will weigh in this November on several measures, including changes to the Constitution, tax policy, and long-term infrastructure funding. Many other new laws will take effect automatically, altering how individuals access education, healthcare, justice, and housing.

Whether these laws bring greater freedom, better services, or deeper divides remains to be seen. But one thing is clear: the legal and regulatory landscape in Texas has changed, and individuals, families, and businesses must now navigate a very different environment.

If you have questions about how these new laws could affect your rights or obligations, our attorneys at Gosuits are available to help you understand your options.

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