FROM THE GOVERNOR

Abbott announces Texas’ intent to opt in to Federal School Choice Tax Credit Program AUSTIN — Governor Greg Abbott announced that Texas intends to opt in to the Federal Tax Credit Scholarship program created by President Trump’s One Big Beautiful Bill.

“Texas has delivered on its promise to bring education freedom to every Texas family,” said Governor Abbott. “Thanks to President Trump, generous Texans can receive a tax credit for donations to a qualified scholarship granting organization to minimize education expenses for families. This critical program will increase the opportunity for families to choose the educational setting that works best for their child. Texas is proud to partner with the Trump administration to empower parents and ensure a stronger future for our children.”

The One Big Beautiful Bill created a dollar- for-dollar federal tax credit of up to $1,700 a year for individual contributions to a qualified scholarship granting organization (SGO). Credits for donations in excess of $1,700 can be carried forward for up to five years. Students from families at or below 300% of local median income are eligible and will apply to qualifying SGOs for scholarships which may be used for tuition or other educational expenses at a public or private school such as tutoring, transportation or special needs services. States must opt in to in the program, which starts in January 2027.

In May, Governor Abbott signed into law Senate Bill 2 establishing the Texas Education Freedom Account (TEFA) program which allows eligible students to direct funding toward their choice of preapproved educational providers and services such as private school tuition, instructional materials, and educational therapies. With $1 billion in funding for the 2026-2027 school year, the program will be the largest day-one launch in the country.

Abbott announces major Southwest Airlines expansion in Austin AUSTIN — Governor Greg Abbott, Southwest Airlines, and Austin Mayor Kirk Watson announced at Austin-Bergstrom International Airport (AUS) that Southwest will establish a new pilot and flight attendant crew base in Austin. Southwest’s expansion will lay the groundwork for future operational growth in the state and is expected to create 2,000 jobs in Austin by mid-2027. A Texas Enterprise Fund (TEF) grant of $14 million has been extended to Southwest Airlines. In addition, the company has been offered a $375,000 Veteran Created Job Bonus.

“Southwest Airlines was born and raised in Texas and has been a core element of the economic growth we have seen in our state,” said Governor Abbott. “We are excited to announce that today Southwest Airlines will add over 2,000 high paying jobs right here in Texas. We are the home of economic opportunity for our fellow Texans more than any other state in the United States, and we know a key reason for that is because of everything Southwest Airlines provides. We are proud to partner with everybody connected with Southwest as well as the City of Austin on such a huge announcement for our state.”

The new crew base will include pilots and flight attendants, in addition to managerial and support staff, who will support flight operations across the entire Southwest network. The new crew base will have an average salary of $180,000 a year. The expansion will also include buildout of the station Command Center, as well as a training facility for flight attendants for ongoing safety and regulatory training.

The Governor was also joined by Southwest Airl ines CEO Bob Jordan, Austin City Manager T.C. Broadnax, and AUS CEO Ghizlane Badawi.

“This investment demonstrates our commitment to Austin and to our customers,” said Southwest Airlines President, Chief Executive Officer, and Vice Chairman of the Board Bob Jordan. “As the largest carrier at Austin– Bergstrom International Airport, we appreciate the vision of Governor Abbott and Mayor Watson in clearing the way for Austin to become an even bigger part of our future.”

“We’re laser focused on making sure people in Austin have good incomes, so they can afford to live and build a life in our city,” said Mayor Kirk Watson. “This performance-based agreement is a win-winwin deal focused on creating good-paying jobs for Austinites, strengthening our local economy, and providing more investment in childcare and workforce development programs.”

“Congratulations to Southwest Airlines on receiving a $14 million Texas Enterprise Fund (TEF) grant and for selecting Austin and Senate District 21 as the site of its new pilot and flight attendant crew base,” said Senator Judith Zaffirini. “This exciting investment underscores the company’s commitment to our state and will generate thousands of good-paying jobs in this area. What’s more, this milestone reflects Texas’ leadership in aviation, economic development, and workforce training. We look forward to the opportunities this expansion will offer Texans, especially our veterans, and to the continued success of this iconic Texas- based company.”

“This grant from the Texas Enterprise Fund will contribute to Southwest Airlines’ investment in the economic growth of the Austin area that I represent,” said Representative Lulu Flores. “My constituents will benefit greatly from the job opportunities these projects will bring, and I welcome this opportunity to continue partnering with this exceptional Texas company.”

“Southwest’s decision is a significant victory for the City of Austin, the Central Texas region, and the State of Texas,” said Opportunity Austin CEO Ed Latson. “It demonstrates how economic development tools empower communities to secure job-creating investments that support longterm community impact. Southwest choosing to deepen its partnership is a clear reflection of the commitment to our economy.”

Southwest Airlines, a Fortune 500 company and one of the largest employers in the state, has been headquartered in Texas since it was first incorporated in Texas in 1967. Southwest Airlines operates more than 4,000 flights a day during peak travel periods and carried more than 140 million customers in 2024.

TEF is a performancebased grant that may be awarded to a business relocation or expansion project for which one Texas site is in competition with out-of-state locations to create new, good-paying jobs in the community and attract significant new capital investment to the state.