The bill, S.B. No. 1857, amends Section 351.1015(b) of the Texas Tax Code to expand the authority of certain municipalities to utilize specific tax revenue for qualified projects. The amendments include the addition of new criteria for municipalities eligible for these projects, specifically targeting those with populations between 700,000 and 950,000, those that comprise over 70% of a county with a population of 1.5 million or more, and municipalities with populations of at least two million. Additionally, it introduces provisions for municipalities with populations of 200,000 or more that are described by Section 351.152(15).

The bill also clarifies that it prevails over any conflicting legislation from the 89th Legislature, Regular Session, 2025, regarding nonsubstantive additions and corrections to enacted codes. The effective date for this legislation is set for September 1, 2025.