House Bill No. 2770 introduces a new chapter to the Local Government Code that prohibits municipalities in Texas from engaging in diversity, equity, and inclusion (DEI) initiatives. The bill defines DEI initiatives as those that promote practices aimed at achieving proportional representation based on identity classifications, which include race, color, religion, national origin, or ethnicity. Specifically, the bill prohibits municipalities from spending public funds on DEI initiatives, hiring vendors for such purposes, or promoting events that exclude participation based on identity classifications. It also restricts municipalities from requiring employees to participate in DEI training or funding scholarships that advocate for preferential treatment based on identity classification.

Additionally, the bill mandates that municipal governing bodies promote policies that avoid considering identity classifications in decision-making processes, emphasizing individual merit instead. It further stipulates that municipalities cannot adopt regulations that implement DEI initiatives or discriminate based on identity classifications. Enforcement provisions allow the attorney general to take legal action against municipalities that violate these prohibitions, with consequences including restrictions on tax rates and eligibility for state grant funds for a specified period. The act is set to take effect on September 1, 2025.

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