Texas House bill by Rep. Bonnen outlines abolition of certain funds and revenue dedications

Passed bill authored by State Rep. Greg Bonnen aims to eliminate certain funds and accounts created by the 89th Texas Legislature and redirect excess revenues for general governmental use, according to the Texas Legislature website.

In the House, 53 Democrats and 55 Republicans voted in favor of the bill, while 27 Republicans opposed it.

Meanwhile, in the Senate, 11 Democrats and 18 Republicans voted in favor, while two Republicans voted against it.

Greg Bonnen introduced the bill in the Texas House on Wednesday, March 12, during the 89th regular legislative session.

Bonnen graduated from Texas A&M University with a BS.

Bonnen, a Republican, was elected to the Texas State House in 2013 to represent the state’s 24th House district, replacing previous state representative Larry Taylor.

According to the Texas Legislature, the bill’s official text was summarized as follows: ‘Relating to the creation and re-creation of funds and accounts, the dedication and rededication of revenue and allocation of accrued interest on dedicated revenue, and the exemption of unappropriated money from use for general governmental purposes’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill outlines the abolition of funds, accounts, and revenue dedications created or re-created by any act of the 89th Texas Legislature, Regular Session, 2025, effective the later of Aug. 31, 2025, or the act’s effective date, except certain constitutional, federal, and trust fund exemptions. Revenues exceeding appropriations are redirected for general purposes from Aug. 31, 2027. Various amendments categorize exclusions for funds required by federal law, constitutional directives, or those with specific newly authorized uses. The bill mandates the reallocation of interest accrued on dedicated revenues to facilitate general governmental use. It also stipulates the elimination of dedicated accounts for specialty license plates and manages these funds in a trust outside the general revenue fund. The act may take effect immediately upon a two-thirds majority vote in both legislative houses, otherwise on the 91st day post-session. Amendments to Government and Transportation Codes take effect Sept. 1, 2025.

The bill received its final legislative approval on Wednesday, May 28, and was signed into law by Gov. Greg Abbott on Friday, June 20.

Bills in Texas go through a multi-step legislative process, including committee review, debates, and votes in both chambers before reaching a final decision. Each session, there are typically thousands of bills introduced, but only a portion successfully navigate the process to become law.

You can read more about the bills and other measures here.