Texas Economy Triumphs In 2025

TEXAS, December 22 - December 22, 2025 | Austin, Texas | Press Release

Governor Greg Abbott today lauded the strength of Texas’ robust and diverse economy that fosters an environment where large and small business can succeed. 

"Texas' economy continues to triumph because of our business-friendly climate and common sense regulatory environment," said Governor Abbott. "This year, the state slashed red tape and burdensome regulations to allow free enterprise to flourish and Texans to thrive. As the economic envy of America and the strongest workforce in the nation, Texas offers unparalleled economic freedom and opportunity for all.”

2025 Highlights From Texas' Economy Sector: 

In March, Governor Greg Abbott celebrated Texas winning Site Selection magazine's Governor's Cup for an unprecedented 13th consecutive year and 21st win overall.

“Texas partners with the businesses that come to our great state to grow,” said Governor Abbott. “When businesses succeed, Texas succeeds. We added more new jobs last year than any other state, and we have exceeded that for three years in a row. Texas also added more than 314 corporate headquarters since 2015, making our state the headquarters of headquarters. Texas truly is the land of economic freedom—freedom that stokes self determination to achieve things once thought impossible. Freedom that will propel Texas to global economic dominance, and we will continue to foster that economic freedom to ensure that Texas remains the economic engine of America."

With a total of 1,368 projects in 2024, Texas continues to dominate the nation and is once again recognized as the No. 1 state in attracting the most new and expanded business facility projects. Texas also had more than twice the total number of projects than the second-ranked state.

Last week, Governor Greg Abbott delivered remarks and participated in a ribbon cutting ceremony for the grand opening of Texas Instruments' (TI) new 300 mm semiconductor wafer fabrication facility in Sherman. TI’s new semiconductor facility will be home to cutting edge technology, employing thousands of Texans with an expected capital investment of $40 billion over the coming decades.

"Semiconductors are essential to building the space and artificial intelligence infrastructure that will define our future," said Governor Abbott. "Today's announcement by Texas Instruments helps Texas to expand our No. 1 ranking and helps lead the semiconductor manufacturing boom we have here in Texas. With help from Texas Instruments, Texas will remain the home for cutting edge semiconductor manufacturing and the home of more job opportunities than any other state in the United States of America."

Headquartered in Dallas, TI is a global semiconductor company that designs, manufactures, and sells analog and embedded processing chips for markets such as industrial, automotive, personal electronics, enterprise systems, and communications equipment. A Fortune 500 company and one of the top 10 semiconductor companies worldwide, at its core, TI has a passion to create a better world by making electronics more affordable through semiconductors. 

Last month, Governor Greg Abbott joined Alphabet and Google CEO Sundar Pichai to announce Google's $40 billion investment in Texas as part of Google's "Investing in America" initiative. 

"This is a Texas-sized investment in the future of our great state," said Governor Abbott. “Texas is the epicenter of AI development, where companies can pair innovation with expanding energy. Google's $40 billion investment makes Texas Google's largest investment in any state in the country and supports energy efficiency and workforce development in our state. We must ensure that America remains at the forefront of the AI revolution, and Texas is the place where that can happen.” 

Google’s “Investing in America” initiative is furthering American innovation through major investments in technical infrastructure, research and development, expanded energy capacity for an AI-driven economy, and workforce development to help the U.S. continue to lead the world in AI. The investment in Texas will help support Texas businesses and the economy, creating robust career opportunities across North Texas, West Texas, and the Panhandle. 

Texas Named Top Business Climate In America For 3rd Year In A Row

Last month, Governor Greg Abbott celebrated Texas being named America’s Top Business Climate for the third year in a row by Site Selection magazine.  

“Texas once again emerges as the national champion for the top business climate in America,” said Governor Abbott. “As the eighth-largest economy in the world, Texas offers the freedom and opportunity for companies of all sizes and all industries to thrive. Coupled with the pro-growth, pro-business laws I signed this year, Texas improved the process of doing business to help them succeed in our great state. We will continue to make strategic investments and partner with job-creating businesses to ensure that Texas remains the top state in the nation to do business.”

Driving Texas’ top ranking is a powerful combination of factors: the number of job-creating corporate relocation and expansion projects, a pro-growth mindset and environment where enterprise can flourish, investments in workforce development and infrastructure, access to technology and tech talent, and a predictable regulatory landscape.

In June, Governor Greg Abbott signed House Joint Resolution 1, House Bill 9, House Bill 346, House Bill 2464, and House Bill 5195 into law to support Texas' small businesses. Passed during the 89th Regular Legislative Session, these new laws accelerate the process for starting a business in Texas and cut unnecessary government regulations on small businesses.

"The Texas economy is better than ever before," said Governor Abbott. "This session, we took strategic steps to boost small businesses in Texas. Even the smallest of barriers can increase the cost of doing business. We want to make it easier and less costly for businesses in Texas, especially our small business owners."

House Joint Resolution 1/ House Bill 9 (Meyer/Bettencourt) increases the business personal property tax exemption from $2,500 to $125,000, an almost 5,000% increase.

House Bill 346 (Harris Davila/King) allows the Secretary of State to offer expedited business filings so Texas small businesses can establish themselves quickly. This law will also make the new-veteran-owned business franchise tax exemption and business filing waiver permanent. 

House Bill 2464 (Hefner/Middleton) prevents cities from imposing regulations on certain home-based businesses. 

House Bill 5195 (Capriglione/Alvarado) requires state agencies to assess modernization of their internet website to make it easier to do business. 

In May, Governor Greg Abbott celebrated Texas winning the 2025 Prosperity Cup, awarded by Site Selection magazine to the top-performing state for attracting new business investments.

“Texas is No. 1 in the nation for attracting new business investments because we offer businesses the freedom to succeed,” said Governor Abbott. “For industry leaders and job-creating businesses from across the country and around the world, the path to prosperity begins in Texas. With America’s best business climate and a booming Texas economy powered by our skilled and growing workforce, we will build on this momentum for a stronger, more prosperous Texas for decades to come.”

The Prosperity Cup is awarded annually by Site Selection to the most competitive state based on an investment-attraction index that includes rankings for new business location and expansion projects, capital investment, job creation, business and tax climate, and workforce readiness.

In May, Governor Greg Abbott signed three critical pieces of pro-growth, business-friendly legislation into law, including Senate Bill 29 that codifies the business judgment rule in Texas. Passed during the 89th Regular Legislative Session, these new laws boost Texas' capital market environment and cement Texas as the Best State for Business. 

"Texas is the reigning and undisputed champion for doing business in the United States of America," said Governor Abbott. "There is a difference between becoming a champion and repeating as a national champion year after year. To remain at the highest level requires constant innovation and improvement, and that is what we constantly work at to keep Texas as the best business climate in America. Senate Bill 29 provides business decision makers the certainty that sound business judgments made in the best interest of shareholders will not be second-guessed by courts. Business decisions are to be made by the elected officers and shareholders, not by unelected judges. These three laws will solidify our status as the best state for doing business for many years to come.”

Senate Bill 29 (Hughes/Meyer) codifies the business judgment rule and reforms derivative claims processes. It also creates a mechanism to pre-assess corporate director independence. 
Senate Bill 1058 (Parker/Capriglione) creates a franchise tax exemption for stock exchanges operating in Texas for certain tax liabilities. 
House Joint Resolution 4 (Meyer/Parker) is a constitutional ban on a stock exchange transaction tax and an occupations tax. 

In April, Governor Greg Abbott celebrated Texas being ranked the Best State for Business for the 21st year in a row by Chief Executive magazine based on their annual survey of the nation's leading CEOs.  
 
“Texas offers businesses the freedom to succeed — that’s why the nation’s CEOs have ranked Texas as the Best State for Business for more than two decades and counting," said Governor Abbott. “Texas is where entrepreneurs can cast a vision and know they can achieve it. The successful CEOs I meet with credit our business-friendly climate, highly skilled and diverse workforce, and exceptional quality of life across every region of our great state as Texas’ top advantages. We will continue to cut red tape and partner with job-creating businesses and innovators to build a stronger, more prosperous Texas for decades to come."

The Best State for Business ranking is determined in an annual survey conducted by Chief Executive magazine of CEOs' assessments of each state's business climate, workforce, and quality of life. Texas has topped the nation every year since Chief Executive began the ranking. 

In April, Governor Greg Abbott signed Senate Bill 14, also known as Texas DOGE, into law at the Texas Capitol in Austin. Passed during the 89th Regular Legislative Session, this law empowers the Texas government to be more efficient and less intrusive in the daily lives of Texans.
"We are putting at the forefront of legislation the shaping, formation, and recalibration of government in the State of Texas to make it more responsive and more efficient," said Governor Abbott. "We in Texas will now have our own DOGE, known as the Texas Regulatory Efficiency Office. This law will slash regulations, put stricter standards on new regulations that could be costly to businesses, and put a check on the growth of the administrative state. This will make government more efficient and less costly, ensuring that Texas operates at the speed of business. I am proud of everything the Texas Senate and House were able to achieve to get this bill to my desk, which is now law."

Senate Bill 14 (King/Capriglione) creates the Texas Regulatory Efficiency Office to find and eliminate unnecessary regulations in state agencies and create best practices for state agencies to follow to reduce regulatory strains on Texans.