Texas Political Spotlight

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Texas lawmakers are moving to limit the influence of out-of-state donors with a new bill capping contributions in statewide and local races. Meanwhile, the Texas Senate has passed a key business tax relief measure that increases exemptions on business inventory to ease the burden on owners. At the same time, Texas Attorney General Ken Paxton has launched an investigation into General Mills for allegedly misrepresenting cereals as “healthy” despite containing petroleum-based dyes, part of a wider crackdown on synthetic additives in food.

Today’s Insights:

• Texas House Passes Measure to Regulate Out-of-State Donations
• Business Property Tax Relief Clears Texas Senate
• Texas AG Investigates General Mills Over ‘Healthy’ Marketing of Cereals With Banned Dyes

Texas House Passes Measure to Regulate Out-of-State Donations

The Texas House approved HB 3592, authored by Rep. Dade Phelan, which would impose limits on campaign contributions from out-of-state donors for statewide and local elections. The bill caps individual out-of-state donations at $5,000 for statewide races, $2,500 for district offices, and $1,000 for county offices. While out-of-state contributions would face new limits, the bill does not restrict in-state donations or contributions from out-of-state political action committees (PACs), which can still give unlimited amounts. Candidates must return any disallowed out-of-state donations within five days or before the next reporting period, with civil penalties up to three times the donation amount.

The legislation reflects efforts to curb the increasing influence of out-of-state money in Texas elections, where currently no individual contribution limits exist. Although the bill has passed the House, its future in the Senate remains uncertain, as a companion measure has yet to receive a hearing. Texas is one of a few states without caps on individual political donations, contrasting with states like Florida and California, which have strict limits.

Business Property Tax Relief Clears Texas Senate

The Texas Senate on Wednesday unanimously approved HB 9, a measure that would exempt up to $125,000 of a business’s inventory, or business personal property, from taxation by local entities such as school districts, cities, and counties. Currently, only inventory valued at $2,500 or less is exempt, making the bill a substantial increase in relief for business owners. Texas is one of the few states that taxes business inventory, which can include machinery, equipment, and unsold goods. The legislation, authored by Rep. Morgan Meyer, represents a compromise between earlier proposals from the House and Senate, which ranged from a $250,000 exemption to a more modest $25,000 exemption paired with franchise tax cuts.

HB 9 is a central part of a broader tax relief agreement between legislative leaders that also includes increased homestead exemptions for Texas homeowners. Companion legislation in the Senate, SB 4 and SB 23, both priorities for Lt. Gov. Dan Patrick, would raise the school district homestead exemption from $100,000 to $140,000, and provide additional relief for homeowners who are 65 and older or have disabilities. These Senate bills have passed their chamber but await consideration in the House. Meanwhile, HB 9, a top priority for House Speaker Dustin Burrows, now returns to the House for a final vote on Senate amendments before it can advance to Gov. Greg Abbott’s desk.

»»» WATCH: Senator Huffman Senate Finance Committee HB 9 Layout «««

Texas AG Investigates General Mills Over ‘Healthy’ Marketing of Cereals With Banned Dyes

Texas Attorney General Ken Paxton has launched an investigation into General Mills, alleging the company deceptively markets cereals like Trix and Lucky Charms as "healthy" and a "good source" of vitamins, despite using petroleum-based synthetic dyes. In a Civil Investigative Demand issued Tuesday, Paxton criticized the company for reintroducing dyes that had been previously removed and called on General Mills to sell dye-free versions of its cereals in the U.S., as it does in countries where such additives are banned. The investigation comes amid broader federal scrutiny, with Health and Human Services Secretary Robert F. Kennedy Jr. and FDA Commissioner Marty Makary announcing a plan to phase out these additives by 2026, citing health concerns, particularly for children.

“Under my watch, big food companies should be on high alert that they will be held accountable if they put toxic ingredients in our food and engage in false marketing,” said Attorney General Paxton. “I’m proud to stand with the Trump Administration and Secretary Kennedy in taking on petroleum-based synthetic dyes and will always fight to protect the health of the American people. That includes working tirelessly to ensure that food products are not illegally and deceptively marketed by corporations, which is why I’ve launched this investigation into General Mills”

- Attorney General Ken Paxton

While General Paxton’s inquiry stops short of a lawsuit, his office signals growing pressure on food manufacturers amid evolving national standards. The dyes in question, such as Red 40, Yellow 5, and Blue 1, remain legal in the U.S., though Red 3 was recently banned due to cancer risks. Paxton said companies should be “on high alert” for false advertising and suggested his office would support efforts aligned with the federal plan to remove synthetic dyes.

»»» Full Press Release from The Office of The Attorney General «««

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