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From AI regulation to property tax exemptions, here are some new Texas laws for 2026

KUT 90.5

Published December 30, 2025 at 10:15 AM EST

After each legislative session, hundreds of bills are signed into law. Thirty-three of the new laws go into effect Jan. 1. Most passed during the regular session, with two coming from the special session held by lawmakers in August.

With the new year comes some new laws in Texas that touch on everything from property taxes and housing disputes to artificial intelligence regulations and immigration enforcement.

Sheriffs must partner with ICE

The new law requires sheriffs offices that have jails to work with Immigration and Customs Enforcement to enforce federal immigration law. The law will also create a grant program to help pay for personnel and funding.

Thousands gather at the steps of the state Capitol to rally against recent immigration regulations and U.S. actions toward asylum-seekers along the border.

Groups like the American Civil Liberties Union of Texas argue the program won't fully cover the associated costs. The ACLU has also said the legislation could lead to overpolicing and racial discrimination.

The measure "will not make our communities safer, but it will force sheriffs to do the work of ICE in support of the federal government's shameful mass deportation efforts," said Sarah Cruz, a policy and advocacy strategist for the ACLU.

The new law is the latest push to abolish sanctuary cities, which limit federal immigration enforcement to protect undocumented immigrants. State lawmakers passed a law in 2017 that banned such places. But the new law goes further by requiring that local law enforcement work with immigration authorities.

Texas regulates AI

Texas now has laws in place to protect citizens from the threats that could be caused by artificial intelligence.

While Congress has been slow to regulate artificial intelligence, Texas lawmakers passed the Texas Responsible Artificial Intelligence Governance Act. The law is supposed to promote transparency and responsible deployment of AI when it's used to make decisions that affect humans.

Rep. Giovanni Capriglione, R-Southlake, wrote the bill and said it will "address the potential harms of artificial intelligence by establishing a comprehensive regulatory framework that emphasizes consumer protection, transparency and accountability."

The law bans AI-driven pornography bots and chatbots from impersonating underage minors and intentionally generated child pornography. It also bans using AI for violent or financial crimes.The law also creates the Texas Artificial Intelligence Council, which will study how specific regulations might hinder AI development and deployment, as well as potential negative outcomes of regulation.

Glen Hammer, president of the Texas Association of Business, said the new law puts Texas ahead of the nation when it comes to regulating AI, especially because businesses were involved in the law's creation.

"We need to be the leaders in AI," Hammer said, emphasizing a light regulatory touch.

Taxes, taxes, taxes

More than half of the 33 bills taking effect this year will impact taxes. But they are mostly minor changes to existing laws that won't hit pocketbooks too drastically.

"A lot of them are … minor changes to tax law, maybe some cleanup bills of existing tax law, that kind of thing," said Shannon Halbrook with Every Texan, a nonpartisan policy group.

Homeowners in Texas could receive a homestead exemption up to $200,000 in 2026 due to legislation passed by the Legislature.

But state leaders have prioritized cutting taxes across the board, and voters approved five amendments that involved tax cuts in November. They include raising homestead exemptions to $140,000 for all homeowners and to $200,000 for those who are disabled or 65 and over. A homestead exemption essentially reduces the amount of taxes a homeowner owes on their property.

Livestock feed is also now tax exempt, as is border-security infrastructure built on private property.

One new law will require the governor's approval before cities can raise taxes following a natural disaster. The law is a response of sorts to Houston raising taxes after Hurricane Beryl.

Lawmakers went hard on squatters

A new law will speed up the eviction process for squatters, or people who stay in homes illegally.

"These are commonsense reforms to keep bad things [from] happening to people's homes, and more importantly, to keep people out of property they don't own and they don't have any legitimate right to through a lease," said bill sponsor Sen. Paul Bettencourt, R-Houston.

The measure was refined throughout the legislative session to avoid giving landlords too much power in the eviction process. But renters advocates warned about a portion that remained that appears to override guidelines for evictions on properties that receive federal funding.

"Instead of addressing the real housing stability challenges that renters in Texas are facing," said Ben Martin, deputy director of the advocacy group Texan Housers, "legislators made the decision to pass a law that makes the eviction process in Texas just a little bit less friendly to renters and a little bit more confusing."

New regulations for continuing-care facilities

A new law further defines the kinds of continuing-care facilities, which can include retirement communities and memory-care facilities, that are subject to state regulation. Now, facilities that offer lower levels of care will also be regulated.

The new law also further regulates entrance fees for and refunds from such facilities and gives tenants more rights.

The Texas Newsroom's Blaise Gainey, Lucio Vasquez and Rachel Osier Lindley contributed to this story, along with Andrew Schneider of Houston Public Media.