By Emily Kirchner, Vice President of Economic Development, and Jesse Ozuna, FVP of Public Affairs 

In our earlier updates, we outlined new laws from the 89th Texas Legislative Session already in effect and those scheduled to take effect September 1. Some measures, however, require direct voter approval before becoming law. These appear on the ballot as constitutional amendments or other propositions and give Texans the opportunity to shape state policy on issues ranging from tax relief and education funding to judicial oversight and public safety.

The TRB Economic Development & Public Funds team continues to track these measures closely, working with public sector partners, policymakers, and stakeholders to assess potential impacts. Below is a summary of the 17 propositions on the November 4, 2025 ballot.

Proposition 1

Ballot Language: “The constitutional amendment providing for the creation of the permanent technical institution infrastructure fund and the available workforce education fund to support the capital needs of educational programs offered by the Texas State Technical College System.”

IMPACT: This amendment would create two dedicated state funds to support infrastructure, land acquisition, and equipment for the Texas State Technical College System (TSTC), seeded with an initial $850 million from general revenue. These funds would operate outside the normal state budget and legislative oversight.

Proposition 2

Ballot Language: “The constitutional amendment prohibiting the imposition of a tax on the realized or unrealized capital gains of an individual, family, estate, or trust.”

IMPACT: This amendment would permanently prohibit the Texas Legislature from imposing any tax on capital gains, whether realized or unrealized. Texas currently does not have such a tax, so the measure functions as a safeguard to preserve the state’s existing low-tax structure.

Proposition 3

Ballot Language: “The constitutional amendment requiring the denial of bail under certain circumstances to persons accused of certain offenses punishable as a felony.”

IMPACT: This amendment would authorize judges to deny bail to individuals charged with a list of serious felonies, such as murder, aggravated assault, and human trafficking, if the state proves by clear and convincing evidence that release would endanger the public or risk flight. It embeds mandatory bail denial for certain charges into the state constitution, with limited discretion for judges.

Proposition 4

Ballot Language: “The constitutional amendment to dedicate a portion of the revenue derived from state sales and use taxes to the Texas water fund and to provide for the allocation and use of that revenue.”

IMPACT: This amendment would divert up to $1 billion per year in existing sales tax revenue into a new Texas Water Fund to support water infrastructure projects. The funding would occur automatically each year, bypassing the normal legislative appropriations process, and would continue until 2035 unless extended by the legislature.

Proposition 5

Ballot Language: “The constitutional amendment authorizing the legislature to exempt from ad valorem taxation tangible personal property consisting of animal feed held by the owner of the property for sale at retail.”

IMPACT: This amendment would give the Texas Legislature the authority to exempt animal feed held for retail sale from local property taxes. It does not require the exemption but permits future legislation to implement it, potentially correcting a tax inconsistency within the agricultural supply chain.

Proposition 6

Ballot Language: “The constitutional amendment prohibiting the legislature from enacting a law imposing an occupation tax on certain entities that enter into transactions conveying securities or imposing a tax on certain securities transactions.”

IMPACT: This amendment would preemptively prohibit the Texas Legislature from imposing taxes on securities transactions or from creating new occupation taxes on registered financial market operators like brokers and exchanges. It aims to shield investors and financial institutions from future taxation in this space.

Proposition 7

Ballot Language: “The constitutional amendment authorizing the legislature to provide for an exemption from ad valorem taxation of all or part of the market value of the residence homestead of the surviving spouse of a veteran who died as a result of a condition or disease that is presumed under federal law to have been service-connected.”

IMPACT: This amendment allows the Legislature to exempt the homestead of a surviving spouse of a veteran who died from a presumed service-connected condition. The exemption would continue if the spouse remains unmarried and moves to a new qualifying homestead, carrying forward the previous tax relief.

Proposition 8

Ballot Language: “The constitutional amendment to prohibit the legislature from imposing death taxes applicable to a decedent’s property or the transfer of an estate, inheritance, legacy, succession, or gift.”

IMPACT: This amendment would permanently prohibit the Texas Legislature from imposing estate, inheritance, or gift taxes. Texas does not currently levy such taxes, so this measure acts as a safeguard to prevent future reintroduction.

Proposition 9

Ballot Language: “The constitutional amendment to authorize the legislature to exempt from ad valorem taxation a portion of the market value of tangible personal property a person owns that is held or used for the production of income.”

IMPACT: This amendment would allow the Legislature to exempt up to $250,000 of the market value of income-generating personal property, such as business equipment or tools, from local property taxes. The exemption would ease the tax burden on small businesses and the self-employed.

Proposition 10

Ballot Language: “The constitutional amendment to authorize the legislature to provide for a temporary exemption from ad valorem taxation of the appraised value of an improvement to a residence homestead that is completely destroyed by a fire.”

IMPACT: This amendment would give the Legislature authority to provide a temporary property tax exemption for homesteads that are entirely destroyed by fire. The exemption would apply only to the value of the destroyed structure, not the land, and would be implemented through future legislation.

Proposition 11

Ballot Language: “The constitutional amendment authorizing the legislature to increase the amount of the exemption from ad valorem taxation by a school district of the market value of the residence homestead of a person who is elderly or disabled.”

IMPACT: This amendment would authorize the Legislature to raise the additional school property tax exemption for elderly and disabled homeowners from $10,000 to $60,000. The increased exemption would reduce school district taxes for qualifying individuals and would be offset by state funds to maintain district funding levels.

Proposition 12

Ballot Language: “The constitutional amendment regarding the membership of the State Commission on Judicial Conduct, the membership of the tribunal to review the commission’s recommendations, and the authority of the commission, the tribunal, and the Texas Supreme Court to more effectively sanction judges and justices for judicial misconduct.”

IMPACT: This amendment would expand and restructure the State Commission on Judicial Conduct (SCJC), increasing its membership and public representation, while enhancing its ability to issue public sanctions against judges. It also introduces new powers, including the authority to suspend judges upon indictment for certain crimes.

Proposition 13

Ballot Language: “The constitutional amendment to increase the amount of the exemption of residence homesteads from ad valorem taxation by a school district from $100,000 to $140,000.”

IMPACT: This amendment would raise the school district property tax exemption on homesteads from $100,000 to $140,000, reducing taxable home values and offering tax relief to homeowners. The state would reimburse school districts for the resulting loss in revenue.

Proposition 14

Ballot Language: “The constitutional amendment providing for the establishment of the Dementia Prevention and Research Institute of Texas, establishing the Dementia Prevention and Research Fund to provide money for research on and prevention and treatment of dementia, Alzheimer’s disease, Parkinson’s disease, and related disorders in this state, and transferring to that fund $3 billion from state general revenue.”

IMPACT: This amendment would create a new state-run medical research institute and permanently dedicate $3 billion from general revenue, plus up to $300 million annually, for research and infrastructure related to dementia and other neurodegenerative diseases. The fund would exist outside the state’s regular spending cap.

Proposition 15

Ballot Language: “The constitutional amendment affirming that parents are the primary decision makers for their children.”

IMPACT: This amendment would enshrine in the Texas Constitution the inherent right of parents to care for and make decisions about their children’s upbringing. It would restrict state or local government interference unless justified by a compelling government interest using the least restrictive means.

Proposition 16

Ballot Language: “The constitutional amendment clarifying that a voter must be a United States citizen.”

IMPACT: This amendment would explicitly state in the Texas Constitution that only U.S. citizens may vote in Texas elections. While current law already limits voting to citizens, this measure codifies that restriction in the Constitution to prevent future legal or policy changes allowing non-citizen voting.

Proposition 17

Ballot Language: “The constitutional amendment to authorize the legislature to provide for an exemption from ad valorem taxation of the amount of the market value of real property located in a county that borders the United Mexican States that arises from the installation or construction on the property of border security infrastructure and related improvements.”

IMPACT: This amendment would allow the Legislature to exempt from property taxation any increase in value to land in Texas border counties that results from the addition of border security infrastructure. It is a narrowly tailored measure meant to avoid penalizing landowners for voluntary security-related improvements.

Important Dates for November 2025 Voting

Below are important dates leading up to November’s special election:

• Monday, Oct. 6 – Last Day to Register to Vote
• Monday, Oct. 20 – First Day of Early Voting by Personal Appearance
• Friday, Oct. 24 – Last Day to Apply for Ballot by Mail
• Friday, Oct. 31 – Last Day of Early Voting
• Tuesday, Nov. 4 – Special Election Voting Day

For more information, visit: https://www.votetexas.gov/index.html

Looking Ahead

The TRB Economic Development & Public Funds team will continue to monitor the outcome of these ballot measures and evaluate their impact on the communities and industries we serve. From tax policy and infrastructure funding to judicial oversight and constitutional rights, the decisions made by Texas voters in November will shape the state’s legal and economic framework for years to come. Our team remains committed to ensuring that the perspectives of our customers, partners, and public sector stakeholders are represented at every stage of the process.

About TRB Economic Development & Public Funds

TRB Economic Development & Public Funds, a division of TRB, serves as a bridge between the public and private sectors, working with local governments and other entities to align community goals with business priorities. During the 89th session, the team:

• Tracked more than 250 bills tied to banking, economic development, and public policy.
• Provided expert testimony on measures affecting local governments and businesses.
• Met with lawmakers to help ensure legislative outcomes support economic vitality and quality of life across Texas.

This ongoing work reflects TRB’s commitment to supporting the long-term success of Texas communities and the people we serve.