As the calendar turns to January 1, 2026, a sweeping set of new legislation officially takes effect across the Lone Star State. From groundbreaking AI regulations to significant tax breaks for small businesses, these laws will fundamentally change how Texans live, work, and navigate the digital world.
Here is a breakdown of the most impactful changes arriving this New Year.
1. Texas AI Governance (HB 149)
Texas is taking a stand on artificial intelligence with the Texas Responsible Artificial Intelligence Governance Act (TRAIGA). This landmark bill establishes a clear “rulebook” for AI, explicitly banning its use for criminal acts or promoting self-harm. Crucially, it outlaws “social scoring,” preventing both the government and private companies from assigning “grades” to citizens based on their behavior.
2. App Store Age Regulations (SB 2420)
Digital safety for minors gets a major upgrade under SB 2420. App stores are now required to implement strict age verification and display clear content ratings. To give parents more control, the law mandates that minor accounts be linked to a parental account, requiring adult approval for downloads and in-app purchases.
3. Immigration Enforcement (SB 8)
SB 8 reshapes how local law enforcement interacts with federal authorities. Texas sheriffs are now required to cooperate formally with ICE through 287(g) agreements, authorizing local jailers to serve federal warrants and verify the immigration status of inmates. To assist smaller regions, the state is offering grants of up to $140,000 to counties with fewer than one million residents to cover the costs of training and staff.
4. Tax Exemptions for Businesses (HB 9)
Small and medium-sized businesses are getting a significant financial boost this year. HB 9 dramatically increases the property tax exemption for “Business Personal Property”—which includes essential items like furniture, equipment, and inventory.
5. Eviction Expedited Processes (SB 38)
Landlords and property owners gain new protections under SB 38, which targets “squatters” or unauthorized occupants. The bill slashes the timeline for removal by allowing owners to schedule legal hearings within just 21 days of filing a case. By narrowing the scope of these hearings to the simple question of legal occupancy, the state aims to resolve property disputes in record time while still maintaining basic appeal rights for tenants.