Texas Political Spotlight
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Texas lawmakers are pushing to eliminate the $423 million institutional enhancement fund, a large source of funding for higher education, which could lead to significant cuts for major universities like Texas A&M and the University of Texas. State higher education officials say the potential funding loss would affect faculty recruitment, course offerings, and student services. At the same time, tensions surrounding school choice policies reached a boiling point at a town hall in Palastine, Texas, where Rep. Cody Harris walked off stage after heated opposition from the crowd.
Today’s Insights:
- Universities Sound Alarm as Texas Legislators Propose Funding Cuts
- Tensions Flare at Palestine Town Hall as Rep. Harris Walks Off Stage
Universities Sound Alarm as Texas Legislators Propose Funding Cuts
Ahead of the legislative session, Texas lawmakers proposed eliminating the institutional enhancement fund, a $423 million higher education funding source, which provided valuable financial support to universities in the last budget cycle. If approved, this move would result in significant funding cuts for major institutions, including Texas A&M University, the University of Texas at Austin, Texas Tech University, and the University of Houston. Higher education leaders have raised concerns that losing this funding would impact faculty hiring, reduce course offerings, and weaken student services, particularly as schools face restrictions on raising tuition.
The decision aligns with ongoing legislative efforts to reshape higher education policy in Texas, particularly regarding diversity, equity, and inclusion initiatives. Lt. Gov. Dan Patrick has publicly stated that universities failing to fully eliminate DEI programs will face financial consequences, reinforcing his broader push to influence campus governance.
“If they don’t kick DEI out of their schools, they’re going to get a lot less”
- Lt. Gov. Dan Patrick, TPPF Summit 2025
Some lawmakers argue that universities should provide more transparency on how institutional enhancement funds are used before any consideration of reinstating them. University leaders, meanwhile, have warned that these cuts could significantly impact academic programs and student success. Higher education leaders have pointed to the role of these funds in supporting academic initiatives, advising programs, and faculty recruitment.
“Our universities use that mostly for faculty and to teach our students and eliminating it will have a heck of an impact”
- John Sharp, Texas A&M University System Chancellor
» Keep up with all floor debates, committee hearings, and agency meetings live on USLege.ai
Tensions Flare at Palestine Town Hall as Rep. Harris Walks Off Stage
A school choice town hall at Palestine High School ended abruptly on Friday after audience members expressed strong opposition, leading Rep. Cody Harris to end the event an about an hour into the scheduled two-hour runtime. The meeting, titled “A Time for Truth and Facts,” was intended to provide information and discussion on the issue, but tensions escalated as some attendees jeered, disrupting the conversation.
» See the town hall footage here
In a statement on Saturday, Harris described the crowd’s reaction as “troubling” and criticized the disruption, stating that it prevented a meaningful exchange of ideas. He emphasized the importance of respectful discussion and expressed concern that the behavior at the meeting did not reflect the standards expected in civic discourse. Despite the heated exchange, Harris reaffirmed his willingness to engage in further conversations with constituents in a setting that promotes constructive dialogue.
We hope you enjoyed today’s read!
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TXBIZNEWS
New Report: 60% of Small Businesses Use AI, Eye Cryptocurrency
On August 18, 2025, the U.S. Chamber of Commerce published the fourth edition of Empowering Small Business: The Impact of Technology on U.S. Small Business found that nearly 60% of small businesses use AI.
The Details:
- The report shows 58% of small businesses use generative AI, up from 40% in 2024 and double 2023’s rate, with 96% planning to adopt emerging technologies like AI and cryptocurrencies.
- 77% of AI-using businesses say limits on the technology would hurt growth and operations, while 82% reported workforce increases last year.
- Jordan Crenshaw, Senior Vice President of the Chamber’s Technology Engagement Center, said, “A fragmented regulatory landscape will significantly hinder their ability to compete… policymakers need a single national framework.”
- Hrag Kalebjian of Henry’s House of Coffee noted, “AI has been a game-changer… streamlining tasks like product descriptions and marketing emails.”
- The study also found 70% of small business owners are interested in cryptocurrency and stablecoins.
We hope you enjoyed today’s read!
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TXBIZNEWS
Union Pacific Corporation (NYSE: UNP) and Norfolk Southern Corporation (NYSE: NSC) announced announced a merger that would combine the two companies' 50,000 route miles of railway lines across 43 states into a single coast-to-coast rail network.
The Details:
- The deal values Norfolk Southern at $85 billion, forming a $250 billion enterprise, with Union Pacific acquiring it for $320 per share—a 25% premium based on July 16, 2025, prices—issuing 225 million shares for 27% ownership.
- The merger will link 100 ports, streamlining freight delivery for manufactured goods such as steel and lumber and easing highway congestion, with a target closure by early 2027, pending regulatory and shareholder approval.
- Union Pacific CEO Jim Vena said, “This transaction advances the industry… benefiting customers, communities, and employees.”
- Norfolk Southern CEO Mark George added, “Our combined strengths will deliver for the American economy.”
- Expected $2.75 billion in annual synergies and job security for workers highlight the deal’s impact.
Why It Matters:
This merger is expected to enhance shipping efficiency, preserve jobs, and drive economic value across the U.S.
We hope you enjoyed today’s read!
