Texas Political Spotlight
Welcome back, friends
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 «««
🤝 USLege Secures Venture Capital Funding to Accelerate Nationwide Expansion
We hope you enjoyed today’s read!
Stay connected with TXLege News on X and LinkedIn!
🤝 Texas Venture Forum & Gala May 28–29
USLege is headed to the Texas Venture Forum & Gala May 28–29, sponsoring, speaking, and podcasting live from the floor. Join us for the conference and gala at the intersection of tech and government.
🎙️We Have a Podcast! 🎙️
Bills and Business is your go-to podcast for conversations related to Texas legislation and business. Hosted by Laura Carr, Co-Founder of USLege—an AI-driven legislative tracking software—we bring you in-depth analysis on economic trends, impactful legislation, and key developments shaping Texas business.
Subscribe on Youtube and Spotify for weekly episodes!
- 01 First
Subscribe to our Newsletter
Read more news
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!
Texas Political Spotlight - Introducing USLege News
Welcome to USLege News.
We’re refreshing the look and feel of our articles, so you may notice some formatting changes along the way. We still plan to bring you the top stories in Texas state and local politics to keep you informed and in the loop on what’s happening each week. Thanks for reading and being part of our community.
We hope you enjoyed today’s read!
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!
