H.B. No. 100 proposes the allocation of certain federal funds received by the state of Texas to provide property tax refunds to homestead owners. Specifically, the bill mandates that the comptroller of public accounts allocate federal reimbursement funds received for border security and immigration-related costs under Public Law 119-21. The comptroller is required to deduct up to $28 million for administrative expenses from the total federal funds received by April 30, 2026, and then distribute the remaining amount as a one-time rebate check to qualifying homestead households. These checks must be issued by August 1, 2026, and the rebate will not be considered taxable income nor will it affect eligibility for state-administered benefits.

Additionally, the bill stipulates that any federal reimbursement funds received after May 1, 2026, for border security or immigration-related costs will be deposited into the state treasury and used exclusively for school district property tax rate compression. This ensures that future federal funds are directed towards educational funding rather than direct rebates. The act is set to take effect 91 days after the conclusion of the legislative session.