Gov. Greg Abbott on Wednesday expanded his affordability agenda for both the campaign trail and the next legislative session, unveiling a proposal to lower health insurance costs while renewing his push for sweeping property tax relief.
Speaking alongside small business owners at Fort Worth restaurant Los Vaqueros, Abbott argued that reducing everyday expenses should remain a top priority for Texas lawmakers. In addition to defending his previously announced property tax overhaul, the governor proposed eliminating certain state-mandated health insurance benefits that he said drive up premiums for families and employers.
“It will allow Texans to get health insurance that covers all of the essentials without paying for expensive additional mandates imposed by the state,” Abbott said.
According to the governor, the proposal would “cut the cost of health insurance for a family of four by more than $1,000 a year, cut the expense of healthcare insurance for employers by about 20 percent a year, and add more than a million more Texans to health insurance rolls across the state.”
The insurance plan builds on a broader affordability message Abbott has made central to his reelection campaign. Earlier this month, he unveiled a series of proposals aimed at lowering home and auto insurance premiums, including a Texas roof fortification program that would dedicate $400 million to grants of up to $10,000 for qualifying homeowners to strengthen their roofs against severe weather. Abbott has also proposed rewarding safe drivers with lower auto insurance rates.
Property taxes remain the centerpiece of the governor's affordability platform. Abbott's "taxpayer empowerment plan," announced earlier this year, would limit annual local government spending increases to either 3.5 percent or the combined rate of population growth and inflation, require two-thirds voter approval for property tax increases, allow residents to petition for elections to lower tax rates if 15 percent of voters sign on, cap annual property appraisal growth at 3 percent and eliminate school district property taxes for homeowners.
“I have laid out the strongest, boldest property tax reform ever in the history of the state,” Abbott said.
Abbott also used the Fort Worth event to highlight legislation passed during the 89th Texas Legislature that he said strengthened Texas' small business climate, arguing the proposed insurance changes would further reduce operating costs for employers while expanding access to affordable coverage.
Democratic gubernatorial candidate Gina Hinojosa quickly criticized the proposal, arguing Abbott's record undercuts his new affordability message.
“Texas has the highest number of uninsured people and the most rural hospital closures in the country. If Greg Abbott wanted to lower health care costs for Texans, he would've done it in the 12 years he’s been Governor,” Hinojosa wrote on X after the event.
Hinojosa has centered much of her campaign on affordability as well. She has pledged to “declare the affordability crisis in Texas an emergency” and has proposed legislation that would provide every Texas household with a $1,500 payment if elected.
Abbott's proposal received support from the Texas Association of Business, which said reducing insurance mandates would make it easier for employers to offer coverage while lowering costs.
“By expanding affordable coverage options, the proposal would help more small businesses compete for workers while reducing health insurance costs for employers and Texas families,” the organization said in a statement.
The governor's latest announcement comes as Republican leaders continue to signal affordability will dominate the 90th Texas Legislature. On July 15, Abbott joined Lt. Gov. Dan Patrick and House Speaker Dustin Burrows in a letter urging state agencies and lawmakers to "act boldly to preserve Texas' competitive advantage through targeted affordability measures and additional property tax reform," setting the stage for taxes and insurance costs to remain among the Capitol's highest-profile debates next year.
