Monitoring the Session

SB 2137

school quality drops out of housing tax credit scoring

Became law, effective Sep 1, 2025

Verdict: No flags

No flagsInitial review
Sen. José MenéndezDSenate 26

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the allocation of low income housing tax credits.

Caption from analyzed text · version I.

Summary

Only for the 2026 and 2027 award cycles.

The bill temporarily bars the state housing department from judging low income housing tax credit applications by the quality of the local public school. It touches developers applying for these tax credits and the department that writes the yearly rules for awarding them, and it covers only the 2026 and 2027 award cycles. The school-quality rule and scoring points go away for those two years, the ban expires September 1, 2027, and the department must report its effects to lawmakers by November 1, 2027.

Labels

Labels: NO AUTOGRAPH. Became law without the governor's signature on Jun 20, 2025.CROSS-PARTY HANDOFF. Lead author José Menéndez (D) in the Senate. Lead sponsor Charles Cunningham (R) in the House. Party as the Legislative Reference Library lists it for the 89th Legislature.

Receipt

The receipt

89R-SB2137 · 2025-03-10

SOLD BY

Sen. José MenéndezDSenate 26

+ 2 coauthors

ITEM

relating to the allocation of low income housing tax credits.

WHAT IT DOES

Only for the 2026 and 2027 award cycles.

The bill temporarily bars the state housing department from judging low income housing tax credit applications by the quality of the local public school. It touches developers applying for these tax credits and the department that writes the yearly rules for awarding them, and it covers only the 2026 and 2027 award cycles. The school-quality rule and scoring points go away for those two years, the ban expires September 1, 2027, and the department must report its effects to lawmakers by November 1, 2027.

CHARGES

[ ] NONE FOUND

TOTAL

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · April 25, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Received by the Secretary of the Senate
  2. Filed
  3. Read first time
  4. Referred to Local Government
  5. Scheduled for public hearing on . . .
  6. Considered in public hearing
  7. Testimony taken in committee
  8. Left pending in committee
  9. Considered in public hearing
  10. Vote taken in committee
  11. Reported favorably w/o amendments
  12. Recommended for local & uncontested calendar
  13. Committee report printed and distributed
  14. Placed on intent calendar
  15. Co-author authorized
  16. Rules suspended-Regular order of business
  17. Record vote
  18. Read 2nd time & passed to engrossment
  19. Record vote
  20. Three day rule suspended
  21. Record vote
  22. Read 3rd time
  23. Passed
  24. Record vote
  25. Reported engrossed
  26. Received from the Senate
  27. Read first time
  28. Referred to Intergovernmental Affairs
  29. Considered in formal meeting
  30. Reported favorably w/o amendment(s)
  31. Comte report filed with Committee Coordinator
  32. Committee report distributed
  33. Committee report sent to Calendars
  34. Considered in Calendars
  35. Placed on General State Calendar
  36. Read 2nd time
  37. Passed to 3rd reading
  38. Record vote RV#3397
  39. Statement(s) of vote recorded in Journal
  40. Read 3rd time
  41. Passed
  42. Record vote RV#3456
  43. Statement(s) of vote recorded in Journal
  44. House passage reported
  45. Reported enrolled
  46. Signed in the Senate
  47. Signed in the House
  48. Sent to the Governor
  49. Filed without the Governor's signature
  50. Effective on 9/1/25
FILED UNDER

No verified beat found.

SIGNED FOR BY

House · 91 yea · 44 nay

Senate · 24 yea · 6 nay

Sources

House: Final passage · May 24, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

Senate: Final passage · May 12, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

José Menéndez

Donors

Kickapoo Traditional Tribes of Texas$25KTexas Trial Lawyers Association PAC$20KTexas REALTORS Political Action Committee$10K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Jul 2, 2024 to Oct 5, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Kickapoo Traditional Tribes of Texas$25,000.00

Kickapoo Traditional Tribes of Texas

$25,000.00

Cash
$25,000.00
Paid by others
$0.00
Total
$25,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · on Jan 22, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Jan 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101065471.

Texas Trial Lawyers Association PAC$20,000.00

Texas Trial Lawyers Association PAC

$20,000.00

Cash
$20,000.00
Paid by others
$0.00
Total
$20,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 12, 2024 to Oct 5, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101012370, 101032316, 101072614.

Texas REALTORS Political Action Committee$10,000.00

Texas REALTORS Political Action Committee

$10,000.00

Cash
$10,000.00
Paid by others
$0.00
Total
$10,000.00

Also funds 140 other sitting lawmakers.

Derived recipient stock · Jul 2, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · on Dec 2, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101032316.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Kickapoo Traditional Tribes of Texas

$25,000.00

Cash
$25,000.00
Paid by others
$0.00
Total
$25,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · on Jan 22, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Jan 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101065471.

×

Texas Trial Lawyers Association PAC

$20,000.00

Cash
$20,000.00
Paid by others
$0.00
Total
$20,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 12, 2024 to Oct 5, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101012370, 101032316, 101072614.

×

Texas REALTORS Political Action Committee

$10,000.00

Cash
$10,000.00
Paid by others
$0.00
Total
$10,000.00

Also funds 140 other sitting lawmakers.

Derived recipient stock · Jul 2, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · on Dec 2, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101032316.

Votes6

House May 24, 2025

Yea
91
Nay
44
Present, not voting
2
Absent
4
Excused
9
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 3456

SB 2137 was passed by (Record 3456): 91 Yeas, 44 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 91 (published)
  • Nay: 44 (published)
  • Present, not voting: 2 (published)
  • Absent: 4 (derived from named list)
  • Excused: 9 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 23, 2025

Yea
101
Nay
36
Present, not voting
2
Absent
4
Excused
7
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 3397

SB 2137 was passed to third reading by (Record 3397): 101 Yeas, 36 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 101 (published)
  • Nay: 36 (published)
  • Present, not voting: 2 (published)
  • Absent: 4 (derived from named list)
  • Excused: 7 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Senate May 12, 2025

Yea
24
Nay
6
Present, not voting
Not printed
Absent
0
Excused
1
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Sources

The bill was read third time and was passed by the following vote: Yeas 24, Nays 6. (Same as previous roll call)

Published stock of positions for this vote, except where marked derived.

  • Yea: 24 (published)
  • Nay: 6 (published)
  • Present, not voting: Not printed
  • Absent: 0 (derived from named list)
  • Excused: 1 (derived from named list)

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 12, 2025

Yea
24
Nay
6
Present, not voting
Not printed
Absent
0
Excused
1
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Sources

Senator Menéndez moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that SB 2137 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 24, Nays 6.

Published stock of positions for this vote, except where marked derived.

  • Yea: 24 (published)
  • Nay: 6 (published)
  • Present, not voting: Not printed
  • Absent: 0 (derived from named list)
  • Excused: 1 (derived from named list)

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 12, 2025

Yea
24
Nay
6
Present, not voting
Not printed
Absent
0
Excused
1
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Sources

The bill was read second time and was passed to engrossment by the following vote: Yeas 24, Nays 6. (Same as previous roll call)

Published stock of positions for this vote, except where marked derived.

  • Yea: 24 (published)
  • Nay: 6 (published)
  • Present, not voting: Not printed
  • Absent: 0 (derived from named list)
  • Excused: 1 (derived from named list)

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 12, 2025

Yea
24
Nay
6
Present, not voting
Not printed
Absent
0
Excused
1
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Sources

Senator Menéndez moved to suspend the regular order of business to take up for consideration SB 2137 at this time on its second reading: SB 2137, Relating to the allocation of low income housing tax credits. The motion prevailed by the following vote: Yeas 24, Nays 6.

Published stock of positions for this vote, except where marked derived.

  • Yea: 24 (published)
  • Nay: 6 (published)
  • Present, not voting: Not printed
  • Absent: 0 (derived from named list)
  • Excused: 1 (derived from named list)

Senate journal. Source snapshot 2026-10-19, Central time.

Witnesses7
For
5
Against
0
On
2
Names

For

  • Self1 registration
  • Self; TAAHP1 registration
  • Self; Texas Affiliation of Affordable Housing Providers1 registration
  • Texas Affiliation of Affordable Housing Providers1 registration
  • Texas chapter US Green Building Council1 registration

On

  • Texas Department of Housing and Community Affairs1 registration
  • Texas Housers1 registration
Sources

7 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

Senate witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · April 25, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas Senate · Filed Mar 10, 2025

06/20/2025 E Effective on 9/1/25

Texas Legislature Online · Introduced · Senate Committee Report · Engrossed · House Committee Report · Enrolled

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

Coauthors
Carol AlvaradoDSenate 6 Borris MilesDSenate 13
Sponsors
Charles CunninghamRHouse 127 Ray LopezDHouse 125 Sheryl ColeDHouse 46 Shelley LutherRHouse 62 Cassandra Garcia HernandezDHouse 115

House committee · Intergovernmental Affairs · Committee vote 7 aye, 3 nay, 1 absent · Out of committee

Senate committee · Local Government · Committee vote 7 aye, 0 nay · Out of committee

Companion

HB 3753 by Cunningham (identical)

Subjects

Education--Primary & Secondary--Accountability

Housing--General

Taxation--Property-Miscellaneous

HOUSING & COMMUNITY AFFAIRS, TEXAS DEPARTMENT OF

Text

The text as introduced · 302 words

89R4117 JG-F

By: Menéndez
S.B. No. 2137

A BILL TO BE ENTITLED

AN ACT

relating to the allocation of low income housing tax credits.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2306.67022, Government Code, is amended

by adding Subsections (d) and (e) to read as follows:

(d) The department may not:

(1) require as part of the threshold criteria under a

qualified allocation plan that a public school campus with an

attendance zone that contains the proposed development site satisfy

certain criteria relating to educational quality, as specified by

the department in that plan; or

(2) adopt a qualified allocation plan that uses a

scoring system that awards points to an application based on

criteria relating to the educational quality of a public school

campus with an attendance zone that contains the proposed

development site.

(e) This subsection and Subsection (d) expire September 1,

2027.

SECTION 2. (a) The Texas Department of Housing and

Community Affairs shall conduct a study of the effects that the

implementation of Section 2306.67022(d), Government Code, as added

by this Act, has on the allocation of low income housing tax credits

in this state.

(b) Not later than November 1, 2027, the Texas Department of

Housing and Community Affairs shall submit to each standing

committee of the legislature with jurisdiction over affordable

housing a report regarding the study required by Subsection (a) of

this section.

SECTION 3. The change in law made by this Act applies only

to an application for low income housing tax credits that is

submitted to the Texas Department of Housing and Community Affairs

during an application cycle that is based on the 2026 or 2027

qualified allocation plan adopted by the governing board of the

department.

SECTION 4. This Act takes effect September 1, 2025.