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More than 130 cities, most with fewer than 10,000 residents, were blocked from increasing their property tax revenue because they had broken the law.
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Texas will have more than 30 new laws on the books come New Year's Day, touching on everything from artificial intelligence regulation to property tax exemptions.
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Conservative and liberal tax policy experts said Abbott's proposal would lead to higher housing costs and tax benefits flowing disproportionately to wealthy homeowners.
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The governor must first win over lawmakers who have rejected similar proposals. The state may have to backfill more than $17 billion for school funding alone.
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Gov. Greg Abbott formally announced his fourth gubernatorial run in Houston on Sunday. The incumbent Republican, who currently has around $87 million in his campaign war chest, will face two opponents in the 2026 party primary election.
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While most proposed amendments on this year's ballot focused on taxes, voters also showed strong support for investing in Texas' network of technical colleges and dementia and Alzheimer's research.
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Economic uncertainty, inflation, strict state limits on property tax collections and uncertainty around future federal funds have crimped local budgets.
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Here's what we're watching this week at the Legislature.
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New laws range from school vouchers and water infrastructure funding to a ban on city and county-funded abortion travel funds.
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Texas cities and counties have already had their budgets compressed by a variety of factors, including the state's current property tax limits.