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HB 265

Relating to the allocation of certain constitutional transfers of money to the economic stabilization fund, the state highway fund, and the Grow Texas fund and to the permissible uses of money deposited to the Grow Texas fund.

89th Legislature (2025) Introduced by Tom Craddick and 1 co-sponsor

HB 265 reallocates Texas constitutional revenue transfers among stabilization, highway, and economic development funds while expanding Grow Texas fund spending purposes.

Received from the House
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Bill Summary · HB 265

Legislative bill overview

HB 265 restructures how Texas allocates constitutionally-mandated revenue transfers among three state funds: the Economic Stabilization Fund (the state's "rainy day fund"), the State Highway Fund, and the newly-referenced Grow Texas fund. The bill also expands the permitted uses of money deposited into the Grow Texas fund beyond its original purposes.

Why is this important

These funds directly impact Texas's fiscal reserves and infrastructure spending capacity. Changes to allocation formulas affect the state's ability to respond to budget shortfalls, maintain transportation infrastructure, and fund economic development initiatives. The bill's expansion of Grow Texas fund uses could redirect state resources toward different policy priorities than originally intended.

Potential points of contention

  • Fund prioritization trade-offs: Reallocation decisions inevitably benefit some funds while reducing transfers to others, creating winners and losers among competing state priorities (emergency reserves vs. highways vs. economic development)
  • Scope creep concerns: Expanding permissible uses of the Grow Texas fund may dilute its original purpose or allow funds to be spent on initiatives not envisioned by prior legislation
  • Long-term budget implications: Changes to constitutionally-mandated transfer formulas have permanent fiscal consequences that extend beyond current legislative sessions

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

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