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 amended section now applies to municipalities with populations of at least 700,000 but less than 950,000, those that contain more than 70 percent of the population of a county with a population of 1.5 million or more, and municipalities with populations of at least two million. Additionally, it includes municipalities with populations of 200,000 or more that are described by Section 351.152(15).

The bill also makes several deletions and insertions to clarify the criteria for municipalities eligible for these tax revenue uses. Notably, it removes previous references to certain population thresholds and adds new categories, ensuring that a broader range of municipalities can access these funds for qualified projects. The act is set to take effect on September 1, 2025, and it will take precedence over any conflicting legislation from the 89th Legislature, Regular Session, 2025.