5. The End of HUB as We Know It
Following an executive order from Gov. Greg Abbott aimed at removing race- and sex-based criteria from public programs, the acting comptroller first froze new certifications for the Historically Underutilized Businesses (HUB) program, then revamped the program entirely. The new version, VetHUB, is focused entirely on service-disabled military veterans, removing an avenue some contractors could use to improve their chances at winning competitive bids.
4. Texas on DOGE
Following in the footsteps of the federal Department of Government Efficiency (DOGE) program — and an accompanying wave of similar efforts at the state and local level — Texas this year set up a DOGE committee within the Legislature, taking on a number of tech- and AI-specific bills. Coming out of session, the state also established the new Texas Regulatory Efficiency Office, looking to reduce regulatory burdens. To lead the office, Abbott tapped Jerome Greener from the Texas Public Policy Foundation.
3. Two State Agency Moves
One out, one in: This legislative session, Texas abolished the Lottery Commission while establishing a new Cyber Command. Lottery operations are moving to the Department of Licensing and Regulation. Meanwhile, the Cyber Command, under the leadership of retired Vice Admiral Timothy “T.J.” White, will take on cyber responsibilities from the Department of Information Resources as it sets up offices in San Antonio.
2. The Big Budget
This was a budget year for the Texas Legislature, and the state put quite a bit of funding toward IT operations and projects. The $338 billion budget put hundreds of millions of dollars into the capital IT budgets of agencies, funding major initiatives both new and ongoing.
1. Artificial Intelligence
Even as the federal government, including Texas Sen. Ted Cruz, pushed to prevent states from regulating AI, Texas didn’t wait around to craft policy on the subject. That included its signature AI policy bill, TRAIGA, whose future is now in doubt. Meanwhile, the Department of Information Resources (DIR) proposed a statewide AI Code of Ethics, which doesn’t preclude individual department policies such as the AI policy from Parks and Wildlife. Other initiatives included a new state AI advisory board, AI testing within DIR’s Innovation Lab and a flurry of AI projects within various departments.
