Texas Lawmakers Must Allow Free Market Principles to Guide the 2025 Legislative Session

As the 2025 Texas legislative session comes into full swing, the state’s robust economy and free market principles are front and center. Texans, known for their commitment to economic opportunity, have consistently supported policies that promote limited government, competition and innovation—and this session should be no different. The priorities of this legislative session should build on Texas’s track record of economic success by doubling down on policies that strengthen the free market, benefit hardworking families and grow local businesses.

Over the past decade, Texas has solidified its position as a national leader in job creation, innovation and economic growth. Business-friendly policies—such as low taxes, sensible regulation and fostering competitive markets—have attracted companies and talent from across the nation. These policies have fueled unprecedented business growth and a population boom, making Texas a top destination for people and businesses from around the nation and world. These achievements are no coincidence but the result of a steadfast commitment to free-market principles that reward innovation and limit government interference.

Last year, the Texas Senate State Affairs Committee held an interim hearing to discuss reforms to Senate Bill 13, passed by the state’s legislature in 2021. This bill prohibits local governments, schools, and other public entities in Texas from contracting with companies that the state perceives to be “boycotting” energy companies. This policy threatened to severely tighten Texas’ municipal bond market, reducing competition among financial institutions and sticking taxpayers with extra debt they never bargained for due to higher interest rates on voter-approved bonds. However, the reality is many of these same banks have been and remain the largest financiers of the oil and gas industry, and voluntarily departed the Net-Zero Banking Alliance (NZBA) to better align with their long-standing investment practices, which Attorney General Paxton applauded earlier this month.

This recent development is yet another testament to the fact that capital goes where it is treated well, and that free market competition benefits consumers and taxpayers in ways that onerous government intervention or mandates never can. That means empowering business through sensible regulation that allows them to operate without fear of government retribution, rather than enacting burdensome, politically-motivated policies. The Lone Star State must remain focused on free market principles that put prosperity over politics and lead other states to do the same.

As the 2025 legislative session continues, Texas lawmakers need to prioritize policies that continue to enhance economic growth and protect the Texas Miracle, including the competitive environment that has driven Texas’ rise to become the 8th largest economy in the world. Advancing policies that limit banks’ ability to serve consumers and businesses in the state is bad for the economy, businesses, and Texas as a whole.

Texas lawmakers have an opportunity to lead the nation by example. By championing policies rooted in free-market principles, they can ensure that the Lone Star State remains a beacon of economic freedom and opportunity for future generations.

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