relating to the use of certain federal funds received by the state
to provide property tax refunds to Texas homestead owners.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. DIRECT CASH REBATES TO HOMESTEAD PROPERTY OWNERS.
SECTION 1.01. Rebate of federal reimbursements to homestead
property owners.
(1) The comptroller of public accounts shall allocate
federal reimbursement funds received for border security and
immigration-related costs incurred by the state and reimbursed to
the state under Public Law 119-21, also known as the “One Big
Beautiful Bill.”
(2) From the total amount of federal funds received by the
state on or before April 30, 2026, for border security and
immigration-related costs, the comptroller shall:
(a) Deduct the minimum amount necessary for administrative
and processing expenses, not to exceed $28 million; and
(b) divide the remaining amount by the number of households
in the state that have been granted a homestead exemption under
Section 11.13, Tax Code, for the most recent tax year on record as
of January 1, 2026.
(3) Each qualifying homestead household shall receive a
onetime rebate check in the amount calculated under Subsection
(2)(b).
(4) The comptroller shall issue and distribute checks to
eligible households no later than August 1, 2026.
(5) The rebate is not considered taxable income for purposes
of state or federal law and shall not affect eligibility for any
state-administered benefits.
ARTICLE 2. Any federal reimbursement funds received by the
State of Texas under Public Law 119-21, received on or after May 1,
2026, for border security or immigration-related costs shall be
deposited into the state treasury and appropriated solely for the
purpose of school district property tax rate compression, as
defined by Section 48.2551, Education Code.
ARTICLE 3. This Act takes effect on the 91st day after the
last day of the legislative session.
