Facing voter anxiety over inflation ahead of the November midterms, Gov. Greg Abbott has placed economic relief at the core of his reelection bid. The three-term Republican governor is pitching a broad policy slate aimed at slashing household expenses across Texas—a noticeable shift in focus after more than a decade in office.

Recent figures from the Urban Institute indicate that 50% of Texans struggled to afford basic living necessities in 2023, edging above the national rate of 49%.

Abbott’s platform leans heavily on broad property tax cuts, zoning and permitting reforms to accelerate homebuilding, utility deregulation, and state-level healthcare adjustments. While policy analysts praise his focus on boosting the housing supply, critics and researchers argue the plan leaves major drivers of financial strain—particularly surging healthcare and childcare expenses—largely unaddressed.

Taxes, Utilities, and Higher Education

Property tax reform serves as the centerpiece of Abbott’s economic package. His proposals include:

• Placing strict caps on local government spending and residential property appraisals.
• Implementing mandatory rollback elections to drive down local tax rates.
• Passing a state constitutional amendment to phase out school maintenance and operations property taxes, which make up the bulk of local school funding and property tax bills.

Beyond taxation, Abbott wants to dismantle municipal power monopolies to give consumers retail electric choice, lower summer college tuition, and establish accelerated degree pathways.

His Democratic challenger, state Rep. Gina Hinojosa of Austin, contends the governor is reacting too late. Hinojosa has pledged to declare an immediate cost-of-living emergency if elected and push the Legislature to distribute $1,500 direct relief payments to every Texas household.

Housing Supply and Insurance Relief

To rein in housing costs, Abbott’s blueprint targets regulatory delays in residential construction:

• Pre-Approved Building Blueprints: Developers could bypass standard permitting delays by using construction plans already approved by at least three Texas cities. Similar programs operate in cities like Seattle, Washington, and Kalamazoo, Michigan, as well as San Antonio, Bryan, and Lewisville in Texas.
• By-Right Property Additions: Homeowners would gain the legal right to construct accessory dwelling units (ADUs) or home additions, mirroring supply-boosting measures recently passed in states like California.
• $400 Million Roof Hardening Fund: Modeled after Alabama’s “Fortified” coastal program, this initiative would provide homeowners with grants to upgrade roofs against extreme storms. In exchange, participating insurance carriers would be required to lower homeowner premiums.

Housing analysts note that cutting bureaucratic friction directly reduces construction overhead, making accelerated permitting one of the most viable market-driven levers to lower home prices.

The Healthcare Divide

Healthcare remains a critical vulnerability for Texas families. Urban Institute data reveals monthly health insurance premiums in the state jumped 35% over the past year to an average of $651—$40 above the national baseline. Texas also continues to lead the nation in uninsured residents, totaling roughly 5 million people.

Policy researchers emphasize that expanding Medicaid under the Affordable Care Act would quickly reduce financial pressure on low-income families by drawing down billions in federal matching funds. Texas remains one of only 10 states that have declined Medicaid expansion.

Abbott continues to reject expansion, proposing alternative market adjustments instead:

• Exemptions for Small-Business Coverage: Small employers could offer lower-cost health plans stripped of state coverage mandates beyond federal baselines, which Abbott estimates could extend coverage to 1 million uninsured Texans. Opponents warn this deregulation could flood the market with low-value plans that leave patients underinsured.
• Prescription Co-Pay Caps: The plan would establish a $25 monthly co-pay ceiling on inhalers and epinephrine for Texans enrolled in state-regulated plans.