Lawmakers sought to close gaps in education and support funding for agriculture, disaster preparedness and health care this year.
There were big wins for rural Texas this legislative session as lawmakers dedicated more funding to health care, struggling farmers and emergency management.
More than 3 million Texans live in rural pockets strewn across the state, from the Piney Woods in East Texas to far-flung corners in the Panhandle. However, people in rural communities are more likely to lack access to basic necessities, have a dearth of hospitals and struggle to find money for infrastructure needs.
Lawmakers took strides to close those gaps this year. Some proposals did not go through, including a bill that would have prioritized applications for broadband projects that expand to underserved and unserved communities. However, there are other changes that stand to improve conditions for rural communities.
Education
Texas schools can expect an additional $8.5 billion in public education funding.
House Bill 2, sponsored by state Rep. Brad Buckley, R-Salado, gives public schools money for teacher and staff salaries. The money will also be used for training and preparing teachers, special education, safety requirements and early childhood learning. Texas has an excess of 5.5 million students attending 1,200 public school districts.
The boost is expected to help financially stagnating school districts recover from their shortages, including budget deficits, keeping up with competitive salaries and operating costs.
Chris Stanley, board president of the Ector County School District in the oil-and-gas producing region of the state, said he was pleased to see lawmakers pass a public school funding package in tandem with the voucher program. The district is running with a $24 million deficit to educate its 33,000 students. Stanley said the district will benefit from the extra money.
However, Stanley said it was just the start to addressing the needs of public schools.
“In no way is it over,” Stanley said.
Legislators also passed a private school voucher school program called the Education Savings Account, a $1 billion program that allows families to use public dollars to pay for private schools. Parents and educators have said the program could adversely affect public schools.
Water
Lawmakers addressed a flurry of water issues plaguing Texas communities this session, and some of their solutions will directly benefit rural areas. Senate Bill 7, a sweeping bill by state Sen. Charles Perry, R-Lubbock, calls for more money to go toward rural Texas.
The bill allows for money from the Texas Water Fund to be allocated to the Rural Water Assistance Fund, which provides small, rural water utilities with financing for water and wastewater projects. The bill also requires the Texas Water Development Board to ensure a portion of the money is used in rural areas.
Lawmakers also expanded what type of projects qualify for funding through the state. This is helping South Texas officials in their two-year long quest to obtain the funding for a project that would reuse water in their drainage system.
Senate Bill 1967 allows drainage projects that capture floodwater, treat it and distribute it as a new source of water to qualify for funding through the Flood Infrastructure Fund. Gov. Greg Abbott has signed the bill into law.
The bill also allows drainage districts to qualify for funding through the Water Loan Assistance Program, even if they don’t have historical data about water use or provide retail water service directly to consumers.
While these changes to the Texas Water Code will help officials in Hidalgo County get started on construction for their project, it also helps drainage districts across the state fund similar projects.
Rural health
Texas lawmakers took several steps to address problems with rural health. This includes a bill that provides more support for rural hospitals. Experts say it could have helped prevent the closure of a hospital in East Texas during the legislative session.
The Mid Coast Medical Center closed down its operations in Trinity, a town of about 2,400 that is 90 miles north of Houston, citing financial concerns.
Rural hospital closures slowed in Texas after the state saw an influx of federal funding for rural health care as part of the national response to COVID-19. The funding has ended, but inflation hasn’t, leaving many rural hospitals with tough financial choices.
House Bill 18, by Rep. Gary VanDeaver, R-New Boston, is known as the Rural Health Stabilization and Innovation Act. It seeks to give more support for rural hospitals by creating a State Office of Rural Hospital Finance to provide hospitals with technical assistance. Lynn Cowles, the health and food justice director for Every Texan, a public policy institute in Texas, said the bill is good but requires a lot of oversight and monitoring.
Source: Jayme Lozano Carver, Carlos Nogueras Ramos, Jess Huff and Berenice Garcia, The Texas Tribune
Photo Credit: The Texas State Capitol on March 17, 2025. Credit: Lorianne Willett/The Texas Tribune
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