New Texas Laws Effective Jan. 1: Key Changes Impacting Residents

URGENT UPDATE: As of January 1, 2026, Texas has implemented a series of significant new laws that will directly impact residents across the state. These laws, passed by lawmakers in the last session, address critical issues such as immigration enforcement, eviction processes, artificial intelligence regulation, and tax exemptions for small businesses.

Senate Bill 8 mandates that county sheriff offices actively collaborate with U.S. Immigration and Customs Enforcement (ICE) through participation in the federal 287(g) program. This means local jail staff are now authorized to verify the immigration status of inmates and execute federal immigration warrants. The state has introduced a grant program to assist sheriff offices with the necessary training and implementation costs, highlighting the urgency of compliance.

Senate Bill 38 accelerates eviction proceedings against unauthorized occupants, often referred to as squatters. Under this law, court timelines for these cases have been dramatically shortened to between 10 to 21 days, significantly reducing the procedural delays that occupants could previously exploit. This change aims to streamline the eviction process, reflecting a growing urgency to address housing concerns in Texas.

House Bill 149 establishes a comprehensive framework for regulating artificial intelligence systems. Companies utilizing AI will now be required to be transparent about their systems, including notifying users when they are interacting with AI. This law also creates an advisory group to oversee compliance, with penalties in place for any violations, ensuring accountability in the rapidly evolving tech landscape.

Additionally, House Bill 9 expands the business inventory tax exemption by raising the exemption limit to $125,000. This adjustment is designed to alleviate the financial burden on small businesses by decreasing the amount of inventory subject to property taxes, providing essential relief as the economy adapts post-pandemic.

In a move aimed at protecting minors, the Texas App Store Accountability Act requires app stores to verify user ages and obtain parental consent for app downloads or purchases made by minors. This law prioritizes the safety of young users navigating digital platforms.

Moreover, recent adjustments to ad valorem tax calculations will impact how specific tax rates are determined, especially following natural disasters. Changes to insurance rules will also affect when insurers can decline or cancel policies, potentially impacting many residents’ coverage options.

These new laws represent a significant shift in Texas legislation, with immediate effects on daily life for residents. Stakeholders are urged to stay informed about these changes, as the implications are far-reaching and could affect various sectors, from housing to technology.

WHAT TO WATCH FOR: As these laws take effect, residents should closely monitor their impacts, particularly in areas like housing and technology. Local officials and agencies will play a crucial role in the implementation and compliance of these regulations, and more developments are expected as the year progresses.

Stay tuned for updates on how these new laws will shape the future of Texas.