Texas Rings in New Year with Dozens of New Laws, from Immigration to AI Regulation
Texans will have more than just champagne and confetti to welcome in 2026. A sweeping slate of new state laws is set to take effect on January 1, touching everything from immigration enforcement and business taxes to artificial intelligence and app store regulations.
A total of 33 bills — 31 from the regular legislative session and two from the second special session — will become law as the calendar turns, reports Fox 7 Austin. The new measures reflect the state’s ongoing focus on border security, business-friendly tax policies, and emerging technology regulation.
Immigration Enforcement Expands
Among the most controversial new laws is Senate Bill 8, which requires all Texas sheriffs to request partnerships with U.S. Immigration and Customs Enforcement. These so-called “287(g) agreements” will allow ICE to authorize local authorities to perform certain types of immigration enforcement in county jails, including questioning inmates about their immigration status and serving administrative warrants, according to the Texas Tribune.
The measure comes amid continued tension between Texas and federal authorities over border policy, with Governor Abbott maintaining his aggressive stance on immigration enforcement throughout his administration.
Business Inventory Tax Relief
Business owners across the state will see some financial relief through House Bill 9, which “will exempt up to $125,000 of businesses’ inventory from being taxed by all entities such as counties, cities and school districts,” notes Fox 7.
But there’s a potential downside for local governments. The Legislative Budget Board has estimated that this exemption will reduce local revenue by a whopping $442 million in fiscal year 2027 unless taxing entities raise their rates to compensate, states the Tribune.
Groundbreaking AI Regulation
Perhaps the most forward-looking legislation is House Bill 149, known as the Responsible AI Governance Act. Texas becomes one of the first states to establish a comprehensive framework for artificial intelligence governance, explains a Latham & Watkins legal analysis.
“The Act prohibits the development and deployment of AI systems for certain purposes, including behavioral manipulation, discrimination, creation or distribution of child pornography or unlawful deepfakes, and infringement of constitutional rights,” the analysis continues.
What makes this law particularly notable? It not only defines AI broadly but creates both a statewide AI regulatory sandbox for companies to test new applications and establishes the Texas Artificial Intelligence Council to guide future policy, confirms Fox 7.
Faster Evictions for Squatters
Property owners will gain new tools against unwanted occupants with Senate Bill 38, which accelerates the eviction process for squatters. The measure aims to make it easier for landlords to remove illegal occupants, though critics have warned it could potentially shorten response timelines for legitimate tenants and reduce existing protections, indicates reporting from Fox 7.
App Store Protections for Minors
Parents will gain more control over their children’s digital activities under the App Store Accountability Act. This new law requires app store operators in Texas to verify the age of users and obtain parental consent before allowing minors to download apps or make in-app purchases via a verified connected account, reveals the Tribune.
The measure represents Texas’s growing interest in regulating tech platforms, particularly where minors are concerned.
As 2026 approaches, Texans will need to familiarize themselves with these and dozens of other new laws that will reshape everything from criminal justice to technology governance. While supporters praise the business-friendly tax relief and increased border security measures, critics remain concerned about potential impacts on local government funding and tenant protections. One thing’s certain — the Lone Star State’s legal landscape will look quite different when the clock strikes midnight.
