Governor Greg Abbott delivered his 2025 State of the State address on Sunday, laying out an ambitious plan for Texas’ future. Speaking to an audience of over 1,000 people at the South Austin headquarters of Arnold Oil Company, Abbott’s speech focused on economic strength, tax relief, school choice, and security.
“Texas is the most powerful economy in America,” Abbott declared, touting the state’s 20-year streak as the top-ranked state for business. He emphasized that Texas continues to lead in job creation, economic development, and entrepreneurship, reinforcing his vision that "Texas is the blueprint for America’s future."
A Focus on Prosperity and Tax Relief
One of Abbott’s top priorities remains property tax relief. He called for using at least $10 billion of the state's $24 billion surplus to lower property taxes, specifically by reducing school district tax rates. Additionally, he proposed a new law requiring a two-thirds majority from voters before any local government can increase property taxes, ensuring such decisions are made in November elections. Abbott also pushed for raising the business personal property tax exemption from $2,500 to $100,000 to ease the burden on small businesses.
Abbott announced the formation of the Small Business Freedom Council, aimed at slashing regulations, fees, and red tape to further boost Texas' business-friendly environment.
Education and School Choice Take Center Stage
A key highlight of Abbott’s speech was education reform, particularly his long-anticipated education savings account (ESA) program. This initiative would provide families with state-funded accounts to help cover private school tuition and other educational expenses. Abbott emphasized that school choice would not come at the cost of public schools, stating that Texas will continue fully funding public education while raising teacher salaries.
“Government-mandated schools cannot meet the unique needs of every student,” Abbott said. “More than 30 states already have a form of school choice. We will give Texas families the same opportunities.”
In addition to ESAs, Abbott pushed for higher teacher pay—though he did not specify an exact amount—and an expansion of career training programs for students not pursuing a university degree.
Water, Infrastructure, and Cybersecurity Investments
With Texas' rapid growth, Abbott stressed the need for significant water infrastructure investment. He proposed a one-time infusion of several billion dollars, followed by an annual $1 billion allocation for the next decade to ensure long-term water security.
Cybersecurity is another major concern, and Abbott called for the creation of a Texas Cyber Command to defend the state’s infrastructure from foreign cyber threats. He highlighted San Antonio’s status as a cybersecurity hub and warned of potential attacks from adversaries like China, Iran, and Russia.
Abbott also addressed the power grid, setting a high bar for increasing Texas' energy capacity. He called for expanding power generation and leading a nuclear power renaissance in the U.S.
Bail Reform and Public Safety
Abbott renewed his push for bail reform, which has failed in the Texas House in recent years. His proposal would prevent violent offenders from receiving low or no-cost bail.
He also took a firm stance on criminal justice, particularly in response to the murder of 12-year-old Jocelyn Nungaray, allegedly at the hands of illegal immigrants. Addressing her mother, Alexis Nungaray, who was in attendance, Abbott stated:
“Justice for Jocelyn demands action. I demand legislation imposing the death penalty on anyone convicted of murdering a child like Jocelyn.”
This call for harsher penalties is expected to spark debate in the legislature.
Looking Ahead
Abbott closed his address with a call to uphold Texas’ legacy of freedom and economic strength. He framed his agenda as a continuation of Texas’ leadership on national issues, positioning the state as a model for economic prosperity, security, and individual liberty.
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