Yesterday, the Texas Senate granted final passage to significant pieces of legislation that will help reduce the burden of rising property taxes on Texas homeowners: Senate Bill 4/Senate Joint Resolution 2 and Senate Bill 23/Senate Joint Resolution 85. Authored by Senator Paul Bettencourt and joint-authored by Senator Juan “Chuy” Hinojosa, these bills will increase the school district homestead tax exemption.

SB 4/SJR 2 will raise the homestead tax exemption from $100,000 to $140,000. Additionally, SB 23/SJR 85 provides an increased homestead tax exemption for disabled homeowners and those aged 65 and older, raising it from $10,000 to $60,000.

Both measures ensure that school districts will not face funding losses from the higher homestead exemptions, as the state will compensate for the difference through general revenue under the new state aid formulas. If approved by voters in November, these exemptions will apply to property taxes for the current year.

Senator Chuy Hinojosa stated, “Rising property taxes are a pressing concern for Texans and a top priority for Lt. Governor Dan Patrick and the Texas Senate. Over the past decade, we have focused on reducing property tax burdens for families, which often feel like a second mortgage. High property taxes strain homeowners and businesses, making it difficult for families to stay in their homes and hindering economic growth.”

Hinojosa continued, “If approved in November, this legislation will provide significant tax relief by raising the homestead exemption to $140,000 and up to $200,000 for homeowners over 65 and individuals with disabilities. This is the largest tax relief package yet and will save families hundreds of dollars on their property tax bill.”

In 2015, the Texas Legislature approved an increase in the residence homestead exemption from $15,000 to $25,000, followed by a voter-approved increase to $40,000 in May 2022. Most recently, in 2023, the Legislature raised the homestead exemption to $100,000 with an overwhelming 83% approval from voters. Texans will have the opportunity to vote on these new proposed increases in the upcoming November election.

How fuel depots are fueling cartel profits, tax fraud, and safety risks—and how SB 2949 strikes at the heart of those issues

When most Texans think about border crime, they picture drugs or weapons—not fuel. But in recent years, a different kind of smuggling has taken hold across the Texas-Mexico border: fuel theft and tax evasion through transloading operations, increasingly linked to Mexican cartels and enabled by unregulated fuel depots. In 2024, Lt. Governor Dan Patrick assigned the Senate Committee on Border Security to do a deep dive into this issue. What I learned is that this is not just a regional issue. It affects statewide tax integrity, environmental safety, and the security of our international trade routes.

During committee hearings the Texas Department of Public Safety (DPS) and the Comptrollers’s Criminal Investigation Division testified that what started as isolated schemes has evolved into a coordinated system to export fuel to Mexico without paying taxes. Known in Mexico as huachicol, the black-market fuel trade once referred to thefts from Pemex pipelines. But today, a new variant has emerged—huachicol fiscal—where fuel purchased tax-free in Texas is smuggled into Mexico, bypassing both U.S. and Mexican fuel tax systems.

Unregulated Fuel Depots: The Hidden Infrastructure of Huachicol

According to DPS and the Comptroller’s Office, these transloading facilities known as fuel depots operating near ports of entry and mostly connected by designated overweight corridors are the key for smuggling operations. Trucks carrying tax-free loads of fuel intended for export pull into nearby depots to shift fuel from U.S. trucks to Mexican tankers or offload it into above-ground storage tanks to manipulate load weights and bypass tax regulation. Fuel intended for export is often blended, resold, or smuggled across the border using false shipping documents and unlicensed transporters. The result: millions in lost tax revenue, increased environmental risks, and a black-market infrastructure that enables cartel-linked actors to profit at the state’s expense.

Many of the workers at these facilities are untrained in dealing with hazardous materials and use pumps, hoses, and other equipment not safe for the handling of fuel. DPS and the Comptroller’s Office reported that the use of overweight three-axle trucks to carry up to 140,000 pounds, far above the standard 80,000-pound limit, are an integral part of the scheme to get the fuel across to Mexico. While some trucks operate on permitted overweight corridors like the route from the Port of Harlingen to the Los Indios Bridge, many others illegally use roads not designated as overweight routes under state law leading to the Pharr International Bridge—posing serious safety and enforcement challenges. These activities are occurring in residential areas creating dangerous situations for our families.

Law enforcement reports show these operations routinely violate environmental and hazardous material laws. Spills seep into the soil. Fumes escape into neighborhoods. Some depots sit just blocks from schools, homes, and international bridges—turning border communities into staging grounds for cartel-linked fuel crime.

Federal Action and the Texas Response

This is not theoretical. On May 1, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a warning about fuel smuggling operations run by Mexican cartels. These groups exploit our border infrastructure and weak regulations to move stolen crude oil into the United States, often disguised as waste oil shipments. Through American associates using shell companies appearing to be legitimate businesses in the fuel industry, the cartels are enabled to launder billions of dollars in illegal profits nationwide, harming our communities and economy.

Last month, four people were arrested in a crude oil smuggling case connected to a Rio Hondo facility. This followed months of investigations by federal agencies, DPS, and the Comptroller’s Criminal Investigation Division into tax fraud, illegal transloading, and unlicensed tanker operations in Cameron and Hidalgo Counties.

SB 2949: Closing the Loopholes, Protecting Texas

In response, I filed Senate Bill 2949, which passed the Senate unanimously last April and is now in the House. The purpose of this legislation is to shut down fuel depots in border counties, where the risk of smuggling and fraud is greatest. The bill establishes strong civil and criminal penalties, tightens motor fuel transporter licensing requirements, and enhances fuel export tracking, specifically targeting undocumented transloading, fraud, and illegal fuel transport. By improving state oversight, we can stop fuel tax evasion at the source and eradicate the infrastructure supporting illegal fuel trade.

What sets SB 2949 apart as passed in the Senate, is its clarity: it does not create new loopholes or regulatory confusion. It targets unregulated infrastructure while protecting lawful IRS-registered terminals, refineries, and exporters. It holds both the operator and the licensed supplier accountable for any misuse of tax-exempt fuel. And it gives state and local authorities the tools they need to shut down dangerous fuel depots.

What to Watch For

Texans should be alert for signs of this growing trade:

·     Three-axle fuel trucks from Mexico using local roads not designated for overweight travel.

·     Above-ground tanks on vacant lots or near ports of entry with no visible signage or safety barriers.

·     Frequent fuel transfers between trucks using hoses and portable pumps without proper documentation.

·     These are not harmless logistics hubs—they are hubs for tax fraud, smuggling, and criminal activity.

The Stakes

We cannot allow cartel-linked fuel crime to take root on Texas soil. The economic impact is real, the public safety risks are rising, and the credibility of our tax system is on the line. SB 2949 strikes the right balance: strong enforcement, protection for legitimate commerce, and a clear message that Texas will not tolerate black-market fuel routes—northbound or southbound. Texas cannot compromise its security or lawful commerce in the face of this growing threat. We must work together to fight against huachicol (fuel theft) and huachicol fiscal (tax evasion) to work toward a safer future for our communities.

On May 12th, the Texas Senate finalized action on Senate Bill (SB) 5 and Senate Joint Resolution (SJR) 3, both authored by Senator Joan Huffman, to allocate funding for research, prevention, and treatment of dementia, Alzheimer’s disease, Parkinson’s disease, and related disorders. SB 5 is now headed to Governor Greg Abbott for approval, while the proposition in SJR 3 will be voted on in November. Senator Juan “Chuy” Hinojosa, co-author of the bills, expressed strong support for the establishment of the Dementia Prevention and Research Institute of Texas (DPRIT).

Senator Hinojosa stated, “Few bills we will pass this session will have as significant an impact on future generations as these dementia bills. This program is modeled after the Cancer Prevention & Research Institute of Texas (CPRIT), which has transformed cancer treatment. I appreciate Lieutenant Governor Dan Patrick for prioritizing this issue and Senator Huffman for her leadership and commitment.”

SB 5 establishes DPRIT to accelerate research into dementia and related disorders, enhance innovation and the potential for medical breakthroughs, improve the health of Texans, and position Texas as a leader in this field. DPRIT is modeled after CPRIT, established in 2007.

SJR 3 is the constitutional amendment that will transfer $3 billion in state funds to the Dementia Prevention & Research Fund, ensuring financing for the next ten years, with a limit of $300 million in appropriations per fiscal year. This fund will support research into the causes, prevention, treatment, and rehabilitation of dementia, creating high-quality jobs and attracting top researchers to Texas.

Earlier this year, the Senate Finance Committee heard testimony indicating that approximately 400,000 Texans aged 65 and older are living with Alzheimer’s disease, with Texas Medicaid expenses related to care projected to reach nearly $4 billion in 2024. Additionally, research shows that the Hispanic population will see a steep increase in dementia diagnoses, yet they are underrepresented in clinical trials.

Senator Hinojosa emphasized, “DPRIT is designed to make Texas a leader in combating dementia. In the RGV we have the UTRGV Alzheimer’s Disease Resource Center for Minority Aging Research. This center will benefit from DPRIT and the significant investment of $3 billion. These funds will speed up research to help us learn more about this terrible disease, how we can prevent it, and eventually cure it.”

The establishment of DPRIT is a historic commitment to improving the quality of life for those affected by dementia and ensuring Texas remains at the forefront of medical research and innovation.

On May 9th, the Texas Senate passed House Bill (HB) 331, authored by Representative Jared Patterson and Senator Juan “Chuy” Hinojosa. This important bill ensures that firefighters, peace officers, and emergency medical technicians (EMTs) who experience a heart attack or stroke within eight hours after a strenuous shift are presumed to have been injured in the line of duty. This change will help these brave individuals access workers’ compensation benefits more easily and fairly.

Senator Hinojosa emphasized the importance of this bill, stating “Our first responders have earned and deserve our support. They are there for us when we need them the most. Likewise, we shouldn’t turn our backs on them when their life and health are impacted by their work.”

First responders face significant risks. Current law requires that heart attacks or strokes occur during duty. However, the nature of their work often involves high-stress situations that can lead to medical emergencies after their shifts have ended. Many firefighters and police officers push through to the end of their shifts, only to discover they have suffered a heart attack later.

House Bill 331 removes the “nonroutine” limitation, broadening the definition of “qualifying activity” to include any stressful or strenuous physical activities, whether routine or extraordinary. Since first responders frequently deal with unpredictable situations, this change will simplify the coverage and eliminate confusion.

The new law will apply only to claims filed on or after the effective date, meaning there will be no retroactive claims.

Senator Hinojosa concluded, “This bill is the right move to protect our first responders and their families, giving them peace of mind that if a tragedy occurs, they will have access to the benefits they deserve.”

The bill is now awaiting final approval from Governor Greg Abbott.

Today, the Texas Senate passed House Bill (HB) 3093, authored by Representative Denise Villalobos and Senator Juan “Chuy” Hinojosa. This bill is designed to provide more tax revenue certainty and protect local governments along the Gulf Coast from financial harm caused by appraisal disputes. 

HB 3093 will exclude contested amounts from appraisal rolls for the 20 highest-value properties. This change allows eligible counties, cities, and special districts to base their budgets on accurate, collectible property values, instead of disputed amounts that might not be resolved in time.

Senator Hinojosa shared the background on the bill, stating, “In 2023, I was approached by local officials, including Nueces County Tax Assessor Collector Kevin Kieschnick, Nueces County Judge Connie Scott, Corpus Christi Mayor Paulette Guajardo, Del Mar College Board of Regents Chair Carol Scott, and trustees from Corpus Christi ISD, who expressed concerns about rising contested values for certain refineries. These disputes could lead to budget shortfalls for local entities. In response, I authored Senate Bill 1052 and am pleased that Representative Villalobos filed the companion bill, HB 3093, in the Texas House.”

Currently, taxing units must use total appraised values, which do not account for pending legal disputes. This can lead to inaccurate tax rates and overestimated revenues, causing significant budget gaps if appraisals are later reduced. HB 3093 changes how tax rates are calculated when high-value property owners notify units about pending legal disputes over appraised values.

“HB 3093 will allow local entities to budget based on uncontested values. This bill is a compromise that preserves taxpayers’ rights to protest appraisals while helping governments plan their budgets effectively,” Senator Hinojosa added.

He also thanked the public officials and community leaders from the Coastal Bend who supported the legislation. “It takes teamwork to pass bills during the session and I appreciate the leadership of Rep. Villalobos and the support of Chairman Todd Hunter and Senator Adam Hinojosa in addressing this issue. I also thank the tireless work of Nueces County Tax Assessor Collector Kevin Kieschnick and our local public officials and community leaders who took the time to travel to Austin to testify in support of this bill.”

The bill is now awaiting final approval from Governor Greg Abbott.

The Texas Senate has concurred with House amendments to Senate Bill 1967, authored by Senator Juan “Chuy” Hinojosa, paving the way for important funding opportunities for flood mitigation projects. The bill will now head to Governor Greg Abbott for final approval. 

In 2019, the 86th Texas Legislature passed SB 7, joint authored by Senator Hinojosa, which created the Texas Flood Infrastructure Fund (FIF) to help communities develop drainage and flood control projects. This fund, managed by the Texas Water Development Board (TWDB), provides financial assistance—through grants and zero-interest loans—to cities, counties, and other organizations working to improve flood management and water resources.

Hidalgo County Drainage District No. 1 (HCDD1) is currently working on the Delta Reclamation Project, a significant initiative aimed at reclaiming water from local drainage systems. This project will help tackle the area’s ongoing flooding issues, which are caused by flat terrain, non-absorbent soils, and long distances to natural water outlets. When completed, the Delta Project will convert daily drainage runoff into a new source of drinking water while also providing flood mitigation through proposed detention ponds.

Currently, existing TWDB programs do not fit the needs of the Delta Project, making it ineligible for funding. However, SB 1967 changes that. The bill amends the Texas Water Code to allow projects like the Delta Project to receive support from the FIF. It expands the definition of a “flood project” to include those that control and repurpose floodwater and stormwater for drinking and other uses. Representative Mando Martinez, sponsor of SB 1967 in the Texas House, added an amendment that also authorizes water supply projects that contain a flood control component to be eligible for financial assistance from the State Water Implementation Fund (SWIFT) and the Water Supply Account within the Water Loan Assistance Fund.

Senator Hinojosa stated, “Addressing water challenges across the state is a priority this session. I was proud to author SB 1967, which makes the Hidalgo County Drainage District Delta Project eligible for funding from the Flood Infrastructure Fund and other Texas Water Development Board funds. This project has two main goals: improving our drainage system and capturing water that would otherwise flow to the Gulf and treating the water for distribution to suppliers for both drinking and non-drinking use. I appreciate Hidalgo County Commissioner David Fuentes for his efforts in advocating for this legislation and thank Rep. Mando Martinez for sponsoring the bill in the Texas House. I look forward to Governor Abbott signing this bill into law.”

Yesterday, the Texas Transportation Commission announced an $8 million grant to the Rural Economic Assistance League, Inc. (R.E.A.L. Inc.) for the construction of a maintenance facility in Alice. This funding, which is part of the Federal Transit Administration program includes state resources to support public transportation needs in rural areas of Texas.

Among those present at the Texas Transportation Commission meeting were R.E.A.L. Chairman and Jim Wells County Clerk J.C. Perez, III; R.E.A.L. Executive Director Gloria Ramos, R.E.A.L. Director of Transportation Management Martin Ornelas-Mata, and Jim Wells County Judge Pete Trevino.

State Senator Juan “Chuy” Hinojosa expressed his support for this funding, stating, “I commend the leadership of R.E.A.L.’s board of directors, their staff, and our local public officials for their tireless efforts to secure funding from TxDOT. It is important for the Coastal Bend region to have safe and reliable transportation options and the necessary facilities to meet the needs of our communities. I have consistently supported the funding from TxDOT to make R.E.A.L.’s projects a reality. I am grateful to the staff at TxDOT and the Texas Transportation Commission for their investment.”

To date, TxDOT has contributed nearly $2 million for R.E.A.L.’s planning and design phases, $12 million for the construction of a multi-modal and administration/operations facility, and now an additional $8 million for the maintenance facility. In total, this amounts to nearly $22 million in funding for R.E.A.L.

On Wednesday, the Texas Senate took a significant step forward in the fight against dementia by passing Senate Bill (SB) 5 and Senate Joint Resolution (SJR) 3, both authored by Senator Joan Huffman. Senator Juan “Chuy” Hinojosa, who co-authored these bills, expressed his strong support for the potential establishment of the Dementia Prevention and Research Institute of Texas (DPRIT).

Senator Hinojosa stated, “There are few bills that we will pass this session that will have as significant of an impact for future generations as these dementia bills. This program is modeled after the Cancer Prevention & Research Institute of Texas (CPRIT), and we have seen how that research has transformed cancer treatment for patients. I appreciate Lieutenant Governor Dan Patrick for making this issue a priority and Senator Huffman for her leadership and commitment.”

SB 5 would establish DPRIT to focus on accelerating research into dementia and related disorders, enhancing innovation, and ultimately improving the health of Texans. With the alarming rise of dementia diagnoses—especially among Hispanic populations—this initiative is crucial. “Dementia is not just a medical issue; it’s a personal one that affects families and communities. We must prioritize research and resources to ensure that all Texans have access to the best possible care and support,” Senator Hinojosa added.

SJR 3 proposes a constitutional amendment that would transfer $3 billion in state funds to the Dementia Prevention & Research Fund, ensuring funding for the next ten years, with a limit of $300 million in appropriations per fiscal year. This fund will support research into the causes, prevention, treatment, and rehabilitation of dementia, creating high-quality jobs and attracting top researchers to Texas.

Currently, approximately 400,000 Texans aged 65 and older are living with Alzheimer’s disease, and the costs associated with care are substantial, with Texas Medicaid expenses estimated to be nearly $4 billion in 2024. Additionally, research indicates that Hispanics will continue to experience a steep increase in dementia diagnoses among all racial and ethnic groups, yet they are underrepresented in clinical trials.

Senator Hinojosa emphasized, “DPRIT is designed to make Texas a leader in combating dementia. In the RGV we have the UTRGV Alzheimer’s Disease Resource Center for Minority Aging Research. This center will benefit from DPRIT and the significant investment of $3 billion. These funds will speed up research to help us learn more about this terrible disease, how we can prevent it, and eventually cure it.”

The establishment of DPRIT marks a historic commitment to improving the quality of life for those impacted by dementia and ensuring that Texas remains at the forefront of medical research and innovation. The bills are now in the Texas House for consideration.

Last week, the Texas Senate passed several bail reform bills that were priorities for Lt. Governor Dan Patrick and were declared Emergency Items by Governor Greg Abbott. The bills—SJR 1, SJR 5, SB 9, and SB 40—were all authored by Senator Joan Huffman.

In her opening statement on the Senate floor regarding SJR 1, Jocelyn’s Law, Senator Huffman emphasized the legislation’s significance by sharing the tragic story of Jocelyn Nungaray, a 12-year-old girl from Houston who was strangled and killed by two men accused of entering the country illegally. She stated, “These two men were not denied bail for the murder of Jocelyn, even when the preponderous of the evidence that existed at arrangement, and the fact that their illegal immigrant status presented a major flight risk. This is just unacceptable in our state.”

Senator Juan “Chuy” Hinojosa, a co-author of the bills, highlighted the importance of these reforms, stating, “These bills are important to help keep dangerous and violent criminals from being released into our communities on improper bonds, where they could potentially commit more crimes. These reforms will help protect our families and our communities.”

During the Senate floor debate, Senator Hinojosa referenced a recent case from his district in Jim Wells County, where a repeat offender who, while out on bond awaiting trial for murdering his wife, subsequently murdered his 80-year-old mother. He stated, “This is a real-life example of the failures in our judicial system. As legislators, we must take action to correct these abuses, especially concerning violent criminals.” His comments highlighted the urgency for reform and the need for a judicial system that prioritizes public safety.

The bills passed by the Texas Senate and now under consideration in the Texas House include:

·     SJR 1 – Mandates the denial of bail for illegal immigrants accused of felony offenses upon a finding of probable cause.

·     SJR 5 – Grants magistrates the authority to deny bail to individuals accused of serious crimes, including sexual offenses, violent offenses such as murder or aggravated assault involving a deadly weapon, and continuous trafficking of persons.

·     SB 9 – Transfers the authority to set initial bonds for specific high-risk defendants—such as those on parole, repeat felony offenders, and individuals charged with violent crimes or detained under immigration holds—from hearing officers to a Presiding Judge accountable to voters. This bill also expands the list of offenses ineligible for personal bond to include unlawful firearm possession, violations of family violence protective orders, terroristic threats, and murders related to fentanyl distribution. Additionally, SB 9 enhances transparency in reporting by charitable bail organizations, prevents magistrates from altering bonds set by district courts, mandates judicial appearances before felony bonds are set, and introduces a new appeal process for prosecutors to challenge insufficient bail.

·     SB 40 – Prohibits political subdivisions from using public funds to bail out offenders through charitable bail organizations.

Senator Hinojosa reiterated, “Providing protection to the public from violent individuals is a priority.” These bills are now headed to the Texas House for further consideration. If passed by the House, the voters will have a chance in November to approve the constitutional amendments.

Last week, the Texas Water Development Board (TWDB) approved the request from the Nueces County Water Control and Improvement District No. 3 (District) for $9,304,876 in financial assistance consisting of $2,410,000 in financing and $6,894,876 in principle forgiveness from the Drinking Water State Revolving Fund for the planning, design, and construction of a water system improvements project.

Currently the District’s water system is under review by the Texas Commission on Environmental Quality (TCEQ) for failing to comply with containment requirements. The system is experiencing water losses exceeding 25 percent, as the water distribution system consists of aging, leaking, and undersized waterlines. The proposed project will replace approximately 10,000 linear feet of undersized, aging, and leaking small diameter water lines with new lines, helping to reduce water losses. Additional valves and hydrants will be installed as necessary. The project will also install an Automatic Meter Reading system, replacing approximately 3,532 existing manual read meters. These improvements will ensure a safer and more reliable water supply for the District and the River Acres Water Supply Corporation. The project is scheduled to end its planning phase January 31, 2026, and begin construction the following year.

State Senator Juan “Chuy” Hinojosa issued the following statement:

“This funding from the TWDB is an important step in improving water infrastructure for the residents in the District. Given the current water scarcity in the region, it is unacceptable for a water system to be losing more than 25 percent of its supply due to inefficiencies and leaks. Replacing old, leaking pipes and installing automatic meter readers will help us conserve water and make it easier to detect leaks. I commend the WCID # 3 Board of Directors and their staff for working with the TWDB to secure this funding and for their commitment to improving water infrastructure for the benefit of our families.”