HB 1268 – New Corporate Welfare

HB 1268 creates a new state grant program to provide additional taxpayer funding to businesses that already receive federal innovation grants. While intended to promote technology and job growth, it duplicates federal efforts and expands state taxpayer corporate welfare. The bill imposes new costs on taxpayers, totaling nearly $2 million in just the first two years and requiring new state employees and infrastructure. Moreover, the actual grant costs are indeterminate, meaning the financial liability to taxpayers could grow substantially over time with no built-in cost cap. Texas already competes well for innovation without creating yet another taxpayer-funded subsidy system. This bill expands the role of state government in picking economic winners and losers through grants. Rather than grow bureaucracy, Texas should reduce tax and regulatory burdens across the board to spur innovation organically.