Texas continues to face a range of challenges and opportunities as it moves through 2025. Governor Abbott recently delivered his State of the State address, highlighting Texas' strong economy and outlining priorities like property tax relief and border security[16]. The governor also released a five-year economic development strategic plan aimed at cementing Texas as a global economic powerhouse[7].

In the legislature, Lt. Governor Dan Patrick announced a second round of priority bills, including measures on teacher pay, lottery reform, and curbing nuclear verdicts[11]. The Senate has already passed 10 of Patrick's top 40 priority bills. Meanwhile, lawmakers are considering bills that would expand university governing boards' oversight powers over faculty[15].

The state's economy remains robust, with Texas ranked as the top state for new jobs, economic development, and starting new businesses[16]. However, economists predict slightly slower growth in 2025 compared to 2024[12]. Businesses report rising service sector revenue and resumed manufacturing growth, but also expect higher wages and prices[17].

A measles outbreak in West Texas has infected over 200 people and killed one child, raising concerns about declining vaccination rates[10]. Public health experts warn Texas could make measles a nationwide epidemic without better messaging and contact tracing efforts[15].

Texas recently experienced extreme weather, with wildfire conditions in West Texas, heavy rainfall and flood risks in East Texas, and frigid temperatures across much of the state[13]. Looking ahead, forecasters predict a warmer and drier than normal spring for much of Texas[4].

Looking Ahead: The state continues to grapple with long-term challenges like drought, with water levels at key reservoirs remaining near historic lows[4]. Texas is also preparing for potential impacts from changes in federal policies, with Governor Abbott praising efforts to eliminate the U.S. Department of Education[15]. As the legislative session progresses, debates over school choice, property taxes, and other key issues are likely to intensify.