Abbott Unveils Plan to Halve Texans' Property Taxes, Eliminate School Property Levies for Homeowners

LUBBOCK, Texas — Gov. Greg Abbott unveiled a broad affordability plan during a Sept. 4 visit to Lubbock that seeks to cut Texans' property tax bills by roughly 50% while addressing rising costs for higher education, health care, housing and insurance as he seeks reelection against Democratic state Rep. Gina Hinojosa.

Big Tax Changes Proposed

At the center of Abbott's proposal is a package of tax reforms he says would reduce the average homeowner's property tax burden by half. Key mechanisms he announced include measures to limit local tax increases, create greater predictability in property appraisals and shift more school funding responsibility to the state.

• Require a two-thirds voter approval for local tax increases.
• Give voters clear authority to roll back local tax rates.
• Cap annual appraisal growth for properties at 3% to curb rapid tax increases.
• Eliminate school property taxes for homeowners by moving full responsibility for public school funding to the state, a change Abbott said would drive homeowners' school tax bills to zero.

Other Affordability Measures

Abbott also outlined initiatives across several areas intended to lower household costs:

Higher Education

• Encourage three-year degree programs in selected high-demand fields to shorten time-to-degree and reduce tuition costs.
• Offer discounted summer courses to help students graduate sooner and lower total college expenses.

Insurance And Housing

• Create a fortified-roof program aimed at reducing homeowners insurance premiums by encouraging resilient construction or retrofits.
• Introduce a good-driver discount so lower-risk drivers pay less for auto coverage.
• Cut regulatory barriers and speed permitting to accelerate homebuilding and increase housing supply.

Healthcare

• Cap the monthly cost of inhalers and epinephrine (EpiPens) at about $55 per month.
• Propose a new insurance product focused on essential coverage — primary care, preventive services, hospital care and emergency room visits.

Data Centers And Local Controls

Data centers have generated local opposition across parts of Texas. Abbott cited a recent Aug. 25 poll showing more than half of Texans do not want data centers built in their communities and described directives issued over the summer intended to limit local impacts. Those directives include prohibiting data centers from using water needed by local communities, preventing them from drawing directly from the state power grid, requiring operators to help lower electricity costs either by generating energy for the grid or buying down rates for Texans, and restricting construction in neighborhoods and certain rural areas.

“All combined, I have established comprehensive rules, regulations, guidelines and guardrails to protect our rural communities from any type of invasion by data centers,” Abbott said.

Political Pushback

The Texas Democratic Party criticized Abbott's plan as contradictory, arguing that the state has offered large tax incentives to data centers while promoting Texas as an AI hub. Texas Democratic Party spokesman Jacob Long said the administration cannot tout tax breaks for data centers and then dismiss local concerns about their impact.

The proposals are part of Abbott's broader pitch on affordability as he campaigns for another term amid a tightening race. The plan mixes tax limits, a proposed state takeover of school funding for homeowners, targeted education and insurance reforms, and stricter controls on data center development.

Mateo Rosiles is the Texas Connect reporter for USA TODAY and its regional papers in Texas. Got a news tip? Email him at [email protected].