As Texas continues to grow, state leaders are taking a closer look at several issues that directly affect businesses, including healthcare costs, workforce development, infrastructure and the resources needed to support continued economic growth.

The Texas Association of Business (TAB) recently shared an update on activity at the Texas Capitol and across the state. Here are a few of the issues Texas employers should have on their radar.

Healthcare Affordability for Employers

Healthcare costs remain a major concern for businesses, particularly small and mid-size employers.

The Texas House Select Committee on Health Care Affordability is examining ways to reduce the cost of care, provide employers with more flexibility in health plan design and remove barriers that can make it difficult for smaller employers to offer healthcare coverage.

The committee is also looking at ways to give consumers better information about healthcare costs and quality. These conversations could have a direct impact on employers trying to offer competitive benefits while managing rising operating costs.

Workforce and Child Care Remain Connected

Texas lawmakers are also continuing to look at the connection between child care availability and workforce participation.

The House Committee on Trade, Workforce and Economic Development recently examined how access to child care affects an individual's ability to participate in the workforce and how those challenges can affect employer productivity.

For businesses already working to recruit and retain employees, workforce issues extend well beyond simply finding qualified applicants. Access to child care, training opportunities and other workforce supports can all play a role in whether employees are able to enter and remain in the workforce.

Preparing Texas Workers for AI

Artificial intelligence is also becoming part of the state's workforce conversation.

The Senate Committee on Economic Development is studying the impact AI could have on the Texas workforce and how the state can strengthen workforce resiliency as technology changes the skills employers need.

Part of that discussion includes aligning education and training pathways with evolving workforce needs, an issue that will become increasingly important as businesses of all sizes incorporate new technology into their operations.

Growth Brings New Infrastructure Demands

Texas' continued economic growth is creating opportunities, but it is also increasing demand on the state's infrastructure and natural resources.

State lawmakers are examining the water demands of data centers and other energy-intensive technologies, including how high-consumption cooling systems could affect local water supplies and affordability.

Transportation infrastructure is also receiving attention, with lawmakers reviewing current transportation funding and whether available revenue will be enough to meet the state's future needs.

Texas Manufacturing Shows Strength

There are also encouraging signs for the Texas economy.

According to the update from TAB, the Dallas Fed's August survey of Texas manufacturers showed stronger production, increased new orders and improved expectations for the months ahead. The state's general business activity index for manufacturing rose to 11.6 in August, its highest level since January 2025.

Texas is also continuing to attract major investments. Industrial Electric Mfg. announced plans for a $200 million advanced manufacturing facility in Bexar County that could create up to 3,000 jobs. The project will support electrical power distribution and control equipment used in the state's growing data center, industrial and electric grid infrastructure.

Why These Issues Matter Locally

While much of this work is happening in Austin, the issues being discussed are familiar to businesses here in Angelina County.

The ability to find and retain employees, provide affordable benefits, keep up with changing technology and have reliable infrastructure all play a role in the strength of our local business community.

The Lufkin/Angelina County Chamber of Commerce will continue to keep our Investors informed about issues and developments that could affect businesses in our community and across East Texas.

Source: Texas Association of Business Member Newsletter, August 31, 2026