Landgraf Files Texas STRONG to Reinvest in the Oil Patch

AUSTIN — State Representative Brooks Landgraf (R-Odessa) has introduced House Joint Resolution 47 and House Bill 188, collectively known as Texas STRONG, to be considered in the upcoming session of the Texas Legislature. This initiative proposes the creation of the Texas Severance Tax Revenue and Oil and Natural Gas (STRONG) Defense Fund, designed to modernize the distribution of severance tax revenues to address critical infrastructure, education, healthcare, and public safety needs in major energy-producing communities like those in the Permian Basin.

Since 2014, severance taxes have funneled over $35 billion to key state priorities, contributing $9 billion to public education, $13.3 billion to the state highway fund, and $13.3 billion to the rainy day fund. Of that total, nearly 80% of these funds—around $40 billion—originated from just 32 Texas counties, many located in the Permian Basin.

“The Permian Basin has fueled America for decades, powering homes and industries, generating billions in tax revenue, and driving Texas forward,” Landgraf said. “Our region deserves a reinvestment that reflects its contributions to our state.”

Under Texas STRONG, severance tax revenue that would typically flow into the state’s “rainy day fund”—which is projected to hit its constitutional cap in 2025—would be redirected to dedicated accounts benefiting energy-producing communities. These funds will support long-term investments in infrastructure, public services, and environmental cleanup efforts, such as orphaned well plugging and groundwater protection. Additionally, the initiative would contribute to statewide property tax relief, benefiting all Texans.

“The Permian Basin is the backbone of Texas’ energy sector, yet it faces ongoing infrastructure and public service demands,” Landgraf added. “Texas STRONG is the practical solution to ensure our community has the resources it needs to meet these demands and ultimately thrive.”

The Texas legislature will convene at the Capitol for the 89th Legislative Session on January 14, 2025. Representative Landgraf is set to work closely with lawmakers across the aisle to advance Texas STRONG, which enjoyed overwhelming bipartisan support in the previous legislative session, passing the Texas House with a decisive 144-1 vote.