STATE CAPITAL REPORT

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STATE CAPITAL REPORT

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A Report by Gary Borders for the Texas Press Association

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Paxton, Talarico spar over gas taxes, diesel prices

U.S. Senate candidates Ken Paxton, the Republican nominee, and Democratic nominee James Talarico traded jabs last week over rising gas and diesel prices, The Texas Tribune reported.

At a gas station in Carrollton, Talarico called on Paxton to condemn the Iran war and join his call to suspend federal gas and diesel taxes. Hours later, Paxton said the gas tax should be permanently eliminated.

Talarico first called for pausing the gas tax in April until prices fell below where they were when the war began in February, when the U.S. and Israel conducted joint air attacks against Iran. He has urged Paxton to join his call several times since. He has called the war a “disaster” and blames it for exacerbating affordability issues for Texas families.

“Ken Paxton supports this disastrous war in Iran that’s driving up our costs,” Talarico said. “Today, I am calling on him to oppose this war and support my plan to suspend the federal gas tax and the federal diesel tax so we can provide Texans some necessary relief.”

Paxton responded by saying he supports suspending the gas tax permanently.

“Repealing those taxes would put money straight back into drivers’ pockets every time they fill up, and Washington should fund roads by cutting waste, not by taxing Texans at the pump,” he said.

The federal gasoline tax is 18.4 cents per gallon of gas and 24.4 cents per gallon of diesel. Nearly all the tax collected goes in the Highway Trust Fund for federal highway and mass transit spending.

The average price in Texas last week was $3.94 per gallon for gasoline and $5.90 a gallon for diesel, according to AAA. 

Abbott lifts restrictions on dyed diesel

Gov. Greg Abbott has lifted restrictions on dyed diesel usually allowed only in off-road and industrial equipment in order to lower diesel prices, the Houston Chronicle reported.

He issued a disaster proclamation last week expanding its use. Dyed diesel is exempt from fuel taxes. Abbott also requested a waiver to the Clean Air Act from the Environment Protection Agency to get around federal limits on which diesel can be sold.

“Texas agriculture and freight run on diesel,” Abbott said in a statement. “Record prices put both industries at risk and raise costs for every Texas family. Farmers and truckers can now use dyed diesel on Texas roads, and fuel, crop, and timber loads can move at a higher weight.”

The three-term governor is locked in a close reelection contest in a midterm election dominated by cost-of-living concerns. His Democratic opponent, state Rep. Gina Hinojosa, had earlier called for suspending all diesel taxes, which Abbott said is not in his power to unilaterally do.

Voter snafu highlights difficulty in registering

A Texas backlog of at least 200,000 voter registration applications and updates was caused by a state error. Now election officials are scrambling to respond before voting begins.

Texas is one of only eight state that doesn’t have universal online voter registration. The state Department of Public Safety’s web portal is the only option for registering online or update a voter registration. That option was ordered by a judge after a six-year legal battle.

Votebeat and The Tribune recently reported a flaw in the system where DPS failed to send counties thousands of voter applications and updates submitted through its web portal, dating back to October 2025. There have been bipartisan calls for an investigation into what went awry. State officials so far have provided few details.

“We live in a system that has been designed to make things harder for voters,” said Sarah Chen, the senior supervising attorney at Texas Civil Rights Project. “We don’t have online voter registration, except for this teeny little carveout, and because of the teeny little carveout, now we have these technical glitches resulting in this backlog.”

Cruz scores win on college sports bill

The U.S. Senate passed a major bipartisan bill last week that would overhaul the college sports industry — a bill heavily backed by Senate Commerce Chair Ted Cruz, Politico reported.

The bill was backed by members of both parties and President Trump. It would replace a patchwork of state laws governing student-athlete pay, transfers and eligibility with a single federal set of rules.

“Today the Senate has the opportunity to protect the half-million college athletes and the millions more who follow in their footsteps,” Cruz said in a floor speech last week. “Students are transferring three or four times. Pros are trying to play ball against college kids. Conflicting court decisions have created a fragmented system — one that no one intended.”

The measure passed 77-22 but faces an uncertain future in the House, where Republicans oppose some of its provisions.

Public schools could lose $227M to student voucher exodus

Rural school districts in Texas could lose millions of dollars in funding this year after thousands of students turn to using vouchers to leave for private and home schools, the Houston Chronicle reported. A new analysis of state data indicates at least 28,200 public school students took a voucher instead, resulting in a loss of at least $227 million in state funding for their public schools.

While large urban school districts have seen the most students leave, the loss could be felt more acutely by smaller school districts, where losing a handful of students can dramatically affect their budgets.

Of the 725 school districts that saw at least one student take a voucher and leave, 514 — or 70% — have fewer than 2,000 students. Most of those districts don’t have a private school within their boundaries, meaning the children are either being homeschooled or are attending a virtual private school.

Public schools are state funded based on student attendance. The average loss for each student who takes a voucher is $8,200 on average, though it varies depending on the students and where they live.

Gary Borders is a veteran award-winning Texas journalist. He published a number of community newspapers in Texas during a 30-year span, including in Longview, Fort Stockton, Nacogdoches, Lufkin and Cedar Park. Email: gborders@texaspress.com.