Local Officials Ponder Effect of New State Laws

As 2026 begins, Texans will experience a raft of new laws shaping everything from local business taxes to immigration enforcement and unemployment benefits. Federal changes will also bring tax and health-care shifts for individuals and families. These new rules — the result of the 89th Texas Legislature and the 119th U.S. Congress — took effect a week ago and will directly impact residents, employers, schools, and local governments across the state.

Local officials said some of these laws contiue a trend by state lawmakers of consolidating more power for Austin and meddling in local governments policy.

Texas enacted more than 30 new laws on Jan. 1, 2026, covering business, law enforcement, housing, technology, and workforce issues.

For Olney and surrounding communities, some of the most immediate impacts will be economic.

Property tax relief for small businesses One of the most closely watched measures locally is House Bill 9, which raises the minimum inventory value exempt from local property taxes from $2,500 to $125,000. The change is aimed at easing pressure on small and mid-sized businesses facing rising operating costs.

Olney Economic Development Corporation Executive Director Tom Parker said the increase could significantly improve the city’s ability to attract new businesses.

“House Bill 9 with the increase to the minimum inventory value for taxation up from $2,500 to $125,000 for small business could be a boom to entrepreneurs and startups in the area,” Mr. Parker said. “We have been in discussions with several small manufacturers concerning their relocation of current operations or the starting of a new business in Olney. This is one way to help them get started.”

Water and infrastructure funding Another major measure with local implications is Senate Bill 7, which allocates $1 billion from state sales and use tax revenue for water infrastructure projects.

Mr. Parker said those dollars could be critical for Young County communities grappling with long-term water supply and development planning.

“Senate Bill 7 with its $1 billion from state sales tax and use tax revenue will provide infrastructure and development dollars for many of the water projects being discussed for this part of Young County,” he said.

Concerns over local authority

While Mr. Parker said some legislation offers clear benefits, he also voiced concern over measures that shift authority away from municipalities.

Senate Bills 1252 and 1202, which deal with solar panels and backup generator installations, require cities to allow third-party inspectors for certain electrical systems, bypassing local authority and oversight, he said.

The bills “are another example of how Austin is removing local authority and placing it either in private hands or raising it to the state level,” Mr. Parker said.

He compared them to the so-called “Death Star Bill” — House Bill 2127 passed in 2023 — which stripped homerule authority from cities like Olney and invalidated portions of local city charters.

“That bill removed Home Rule from local authorities like Olney; it struck down our city charter and those of any other Home Rule city,” he said. “It’s a give and take when it comes to Austin.”

Sheriff cooperation with federal enforcement

Senate Bill 8 requires counties with jails to enter into federal agreements (known as 287(g) agreements) so local law enforcement can assist Immigration and Customs Enforcement in detention facilities. Supporters say this aligns local and federal law enforcement efforts; critics argue it could strain trust between immigrant communities and local police.

Young County Sheriff Travis Babcock could not be reached for comment. Local law enforcement officials said they have already been cooperating with ICE.

Anti-squatting law improvements

Senate Bill 38 streamlines the eviction process for unauthorized occupants — sometimes called “squatters” — by clarifying timelines and reducing procedural delay. Landlords continue to provide basic notice and appeal rights.

Faster claims processing

House Bill 3699 aims to streamline unemployment claims by redefining key employment terms and adjusting how initial claims are handled — potentially getting money to claimants faster.