AUSTIN (Nexstar) – Texas politicians on both sides of the aisle are proposing different ways to address artificial intelligence, from taxing AI to requiring safeguards that could shut down powerful systems.
The rapid pace of new AI proposals comes as lawmakers struggle to keep up with a technology that is advancing faster than government regulation.
“The American people have been clear that they are looking for Congress to act on AI,” Kevin Frazier, an AI policy expert at the University of Texas at Austin, said. “The status quo is unacceptable.”
U.S. Rep. Greg Casar, D-Texas, is proposing an AI tax to fund jobs. Casar’s AI Tax and Work Protection Act would tax certain uses of large AI models and use the revenue to create jobs and help workers affected by automation.
The legislation would create a new Work Protection Administration within the Department of Labor and use the AI tax revenue to fund jobs programs.
“The funds from the tax will be used to help support displaced workers and spur employment in critical sectors like child care, public education and job training, elder care, health care and infrastructure,” Casar said in a news conference Thursday.
Texas politicians pitch different plans for Congress to regulate AI
Frazier said he agrees with Casar’s goal of preparing workers but questions taxing AI itself.
“Traditionally, we’ve seen that we tax things that we want to see less of,” Frazier said, arguing policymakers should instead focus on helping workers find jobs that use the technology.
Instead, Frazier argued that a similar jobs program could be funded through AI proliferation.
“The IRS reports that it has about a trillion dollar tax gap — the difference between what it could be collecting if everyone paid what they were supposed to versus what they actually collect,” he noted. “We can use AI, for example, to improve the ability to make sure that folks actually pay their taxes.”
U.S. Rep. Nathaniel Moran, R-Texas, is pushing AI safety measures.
The AI Kill Switch Act, which Moran co-authored with Rep. Ted Lieu, D-California, would require certain large AI companies to maintain the ability to restrict access to or shut down advanced AI systems when serious safety incidents occur.
Covered incidents could include an AI system interfering with shutdown instructions, concealing its actions from monitoring systems or entering a “loss-of-control scenario.”
Moran has also proposed requiring companies to disclose certain AI security and safety incidents.
“One of our first objectives at the federal level is to make sure that we adhere to public safety measures and we push policies that secure our national defense,” Moran told Nexstar affiliate KTAL in June.
Frazier said Moran is right to focus on cybersecurity but questioned whether a kill switch could address risks from AI models that aren’t fully controlled by a company and can be downloaded and distributed widely. He was more supportive of greater incident reporting, saying better data could help policymakers develop effective safeguards.
Crime victim fund cites progress after payment delays
The state’s Crime Victims’ Compensation program touted “significant progress” shortening payment delays but also acknowledged the program has been hampered by “poor processes” and “poor communication,” according to testimony at a Senate Finance Committee hearing on July 27.
Texas crime victim fund touts progress after payment delays, ‘poor processes’
That public acknowledgement, made by Crime Victim Services Division Chief Lane Brown, followed years of KXAN investigations that uncovered payment backlogs, short staffing and turmoil within the division. Those problems left thousands of violent crime victims waiting six months or more for desperately needed assistance with medical bills, relocation, funerals, lost wages, therapy, and many other qualifying costs.
New comptroller pledges to prioritize Abbott’s property tax plan
On his first work day as comptroller, Don Huffines pledged to support Gov. Greg Abbott’s, R-Texas, plan to eliminate school district property taxes on homesteads.
“This will be the number one issue I think the Legislature is going to be dealing with because Texans are tired of renting their property from the government,” Huffines told Nexstar.
Huffines officially took over the job from acting Comptroller Kelly Hancock. Hancock assumed the role last summer, when elected Comptroller Glenn Hagar stepped down to become Chancellor of Texas A&M. Hancock resigned after losing to Huffines in the Texas Republican primary for the next full term in this seat — starting in January.
While serving as comptroller, Huffines will also be campaigning for a full term. With early voting starting in 77 days, his Democratic opponent State Sen. Sarah Eckhardt said, “in naming the Republican nominee to the post, Abbott and Huffines are choosing to put their thumbs on the scale, interfering with the election just to provide a boost for Huffines’ campaign.”
Governor proposes competition for city-owned utilities in Texas
Abbott’s proposed legislation that would open Austin and San Antonio’s municipally owned electric utilities to retail competition, “ending utility monopolies that drive up costs for Texas families and small businesses.”
Governor Abbott proposes ending Austin Energy’s ‘monopoly’ as power provider
Abbott announced the proposal Tuesday, saying customers served by Austin Energy and CPS Energy should have the ability to choose among competing electricity providers, similar to customers in much of Texas’ deregulated electric market.
Copyright 2026 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
For the latest news, weather, sports, and streaming video, head to KXAN Austin.