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Bill

Bill

HB 2054

Relating to the Rural Volunteer Fire Department Assistance Program and authorizing an increase in the assessment on certain insurers that fund the program.

89th Legislature (2025) Introduced by Stan Kitzman and 2 co-sponsors

Texas bill authorizes higher insurance company assessments to increase funding for rural volunteer fire department assistance program, potentially raising insurance costs.

Left pending in committee
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Bill Summary · HB 2054

Legislative bill overview

HB 2054 modifies Texas's Rural Volunteer Fire Department Assistance Program by authorizing an increase in the assessment (fee) that insurers must pay to fund the program. The bill adjusts the financial mechanism that supports volunteer fire departments in rural areas through insurance company contributions rather than direct appropriations.

Why is this important

Rural volunteer fire departments often operate with limited budgets and rely on state assistance programs to maintain equipment, training, and operations. By increasing the insurer assessment, the bill aims to expand funding for these critical emergency services in areas where professional fire departments may not be economically viable, directly affecting response times and fire safety in rural communities.

Potential points of contention

  • Insurance cost pass-through: Insurers typically pass assessment increases to policyholders through higher premiums, which could increase insurance costs for Texas residents and businesses, particularly in rural areas
  • Assessment amount unspecified: The bill authorizes an increase but the specific percentage or dollar amount is not detailed in the summary, making it difficult to assess the actual financial impact
  • Program effectiveness questions: Whether current program funding levels are genuinely insufficient or whether operational efficiency improvements could address needs before raising assessments

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

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