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SJR 48

Proposing a constitutional amendment providing for the creation of the Texas severance tax revenue and oil and natural gas (Texas STRONG) defense fund, dedicating the money in that fund to benefit areas of the state significantly affected by oil and gas production, and providing for the transfer of certain general revenues to that fund, the economic stabilization fund, and certain other funds and accounts.

89th Legislature (2025) Introduced by César Blanco

Texas constitutional amendment creates dedicated fund from oil/gas severance taxes to support communities affected by energy production, redirecting state revenues to targeted local benefits.

Referred to Finance
#comptrollerofpublicaccounts(v2608) #oil&gas(i0545) #resolutions--constitutionalamendments(i0661) #statefinances--management&control(i0748)
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Bill Summary · SJR 48

Legislative bill overview

SJR 48 proposes a constitutional amendment to establish the Texas STRONG (Severance Tax Revenue and Oil and Natural Gas Defense) Fund, which would collect revenue from oil and gas severance taxes. The amendment would dedicate these funds to support communities significantly affected by oil and gas production activities, while also directing certain general revenues to this new fund, the Economic Stabilization Fund, and other state accounts.

Why is this important

Oil and gas production generates substantial state revenue but creates localized environmental, infrastructure, and social impacts in producing regions. This amendment would establish a dedicated funding mechanism to address those concentrated local effects, potentially shifting how Texas allocates oil and gas-related revenues from general appropriations to targeted community benefits in affected areas.

Potential points of contention

  • Defining "significantly affected areas": The bill doesn't specify which communities qualify, leaving the scope of fund beneficiaries unclear and potentially subject to political disputes
  • Revenue impact on general fund: Dedicating severance tax revenues to a specific fund reduces flexibility in the state budget and could limit resources available for other priorities if economic conditions change
  • Alternative use of funds: Some stakeholders may argue these revenues should fund education, infrastructure statewide, or debt reduction rather than compensating specific producing regions

Compiled from official sources — confirm details with the bill’s official record.

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