The Greater Houston Partnership recently convened members from all seven of its public policy advisory committees for a joint kickoff meeting that set the stage for our 2025 advocacy efforts. The meeting offered an in-depth look at the current policy landscapes in Washington, D.C. and Austin, and gave members a preview of the issues our committees will be tackling throughout the year.  This collaborative forum underscored the Partnership’s commitment to driving thoughtful, business-informed policy across education, energy, health care, immigration, local government, technology, and transportation and infrastructure. What We're Watching in Washington and Austin  Our expert partners at Cornerstone Government Affairs and Troutman Pepper Locke walked members through the major legislative developments at the federal and state levels.  Federal Outlook: Cornerstone’s Tyler Nelson emphasized that the first 100 days of the administration have been among the most active in recent memory. With major shifts on the horizon—particularly in tax, energy regulation, immigration, and trade—many executive actions are expected to face legal challenges. Industry-specific tariffs are anticipated in early April.  State Outlook: Troutman Pepper’s Robert Miller highlighted bipartisan cooperation in the Texas Legislature as they work to allocate the state’s historic $24 billion surplus. Key debates center on education funding, water infrastructure, and a bold new proposal for a Dementia Prevention Research Institute of Texas (DPRIT).  Partnership Policy Priorities for 2025  Following the policy briefings, our internal team of subject-matter experts led a panel discussion spotlighting the key issues each advisory committee will focus on this year:  Education  To align with broader education reform efforts, the Partnership has unified its public and higher education committees into a single, streamlined Education Advisory Committee. We’re closely monitoring bills that address early childhood education, school safety, and critical investments in public education, including House Bill 2, which proposes nearly $8 billion in funding enhancements.  Energy  Houston’s energy future is rooted in an all-of-the-above strategy. While oil and gas remain foundational, we’re seeing increasing momentum in solar, hydrogen, and nuclear innovation. The city’s designation as a federal Hydrogen Hub and major projects like the Sunnyside Solar Farm reflect the region’s growing leadership in the energy transition.  Health Care  Mental health in the workplace remains a top priority. With leadership from bp America and Deloitte, the Health Care Advisory Committee is exploring strategies to improve mental health outcomes and reduce burnout. At the state level, we’re supporting the $3 billion DPRIT proposal, which would expand research into neurological disorders and prevention.  Immigration  The Partnership continues to advocate for clear, consistent federal immigration policies that meet the needs of Houston’s business community. Our priorities include modernizing visa programs, resolving DACA status, streamlining case processing, and enhancing border security in a balanced and business-friendly way.  Local Issues  The Local Issues Committee is focused on responsible city budgeting, economic development, and regional resilience. As the Whitmire administration concentrates on public safety and basic services, we are also monitoring the implications of Proposition A, which allows more council members to influence the City Council agenda.  Tech Policy  With AI on the rise, the Partnership is engaged in statewide conversations about ensuring policy keeps pace with innovation. Our Tech Policy Committee is providing input on proposed AI regulations to ensure they are both effective and industry-aligned, helping strengthen Houston’s position as a growing tech hub.  Transportation & Infrastructure  The Partnership is supporting major efforts at both the state and federal levels to improve water and transportation infrastructure. At the state level, we’re backing new funding streams for water infrastructure and supporting TxDOT’s $148 billion transportation plan. Federally, we’re advocating for funding to advance the Texas Coastal Spine, a critical flood protection project for the Houston region.  Get Involved in Shaping Houston’s Future  The work of our public policy committees is central to ensuring that Houston remains a vibrant, globally competitive region. From education and infrastructure to innovation and immigration, our advocacy efforts are driven by the insights and experiences of our members. Want to have a seat at the table? Join a committee, share your business priorities, and deepen your engagement in shaping Houston’s future by getting in touch with member.engagement@houston.org.

On Tuesday, the Texas Senate unanimously passed Senate Bill 1 (SB 1), its version of the state budget proposal for the next two years. Senator Joan Huffman outlined the priority funding and key projects, including the Texas Water Funding, Dementia Prevention and Research Institute of Texas, public education, workforce development and more.  The Senate spent roughly three hours discussing SB 1, which increases appropriations by more than $15 billion from the current budget. The Partnership’s Budget Explorer Tool is updated with the latest version of the Senate Base Budget. Use the tool to explore the following: Topline funding totals for state agencies Public education funding and targeted programs under the Texas Education Agency Funding for water and flood projects across various state agencies Increased Education Spending The committee substitute to SB 1 increased the base budget by about $4 billion, bringing the total spending proposal to $336 billion.  The Texas Education Agency saw the addition of nine programs to the bill. Those include: $11 million for the Teach for America Program $10 million to boost school bus safety $7.5 million in start-up grants for Adult Education Programs in Texas schools $5 million for grants to support low-performing elementary schools $2 million to increase enrollment for College, Career, and Military Readiness programs $800,000 for five new employees at the State Board of Education Senator Brandon Creighton noted in the SB 1 debate that the finance committee chose to maintain the Basic Allotment at $6,100 per student to increase funding for targeted programs instead. Sen. Creighton said the decision was influenced by testimony from supporters of funding specific programs instead of raising the basic allotment. Water Funding Rising Higher The proposed funding for Article VI, which covers agencies under the Natural Resources title, significantly decreased from the current budget. Senators proposed cutting Article VI funding by over $826 million, a 9.41% cut in spending. However, the funding decrease is misleading, as lawmakers have proposed adding $2.5 billion to the supplemental budget for the Texas Water Development Board, contingent on passing a related bill. This allocation is currently noted as a footnote in Article IX of the supplemental budget. Regardless, funding for water projects was increased generally across the board in the committee substitute to SB 1. The Texas Commission on Environmental Quality received increased appropriations for key water resource funds, including a $12 million increase for safe drinking water programs and a $5 million-plus increase in funding for water resource permitting. Still on Tap Lawmakers are still working to deliver a constitutional proposition to dedicate $1 billion annually to the Texas Water Fund for the next 10 years. House Joint Resolution 7 was unanimously voted out of the House Natural Resources Committee on March 19. On Monday, the Senate Committee on Water, Agriculture, and Rural Affairs unanimously passed Senate Bill 7. This enabling legislation outlines the framework for spending the $1 billion in dedicated funding. The Senate wants 80% of the funding to go to new water supply sources, while the House wants more flexibility to use funding for infrastructure repair and maintenance. Building Resilience In addition to water supply funding, lawmakers are looking to increase funding for flood projects around the state. The Soil and Water Conservation Board is investing additional dollars in flood control dams—new construction and ongoing maintenance. If passed, total flood funding will reach over $254 million for the next two years.