Bill to limit out-of-state donations to Texas candidates gets House approval

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The Texas House approved a bill Wednesday that would limit campaign contributions from out-of-state donors to statewide and local races in Texas.

The bill, sponsored by Rep. Dade Phelan, R-Beaumont, and Rep. Terri Leo Wilson, R-Galveston, would cap those out-of-state political donations to a candidate or lawmaker to $5,000 for a statewide election, $2,500 for a district office and $1,000 for a county office.

House Bill 3592, which is a priority of the state Republican Party, would dramatically alter Texas’ election landscape, where there are no limits on campaign contributions from any individuals or political action committees. It would not create any limits to in-state contributions. Out-of-state PACs would still be able to make unlimited contributions to candidates.

An earlier version of the bill would have prohibited PACs from giving if they receive more than 50% of funding from out-of-state residents, but Phelan said he removed that portion of the bill because he was concerned it would place a burden on candidates to do extensive research to determine a PAC’s donor history.

If an individual receives a donation from an out-of-state resident, they must return the money within five days of receiving it or before the next campaign finance reporting period. It includes a civil penalty of no more than three times the amount of the donation.

It’s unclear how the bill will fare in the Senate. A companion bill from State Sen. Mayes Middleton, R-Galveston, has not yet received a committee hearing. In recent years, out-of-state money has poured into state elections. Gov. Greg Abbott received some of the largest donations from out-of-state residents. Notably, Jeff Yass, a Pennsylvania GOP megadonor and staunch supporter of school vouchers, gave $10 million to the governor between 2023 and 2024, which Abbott in turn used against House Republicans who voted against the measure in the legislative session.

Abbott did not immediately respond to a request for comment.

Phelan, who has authored other campaign ethics bills this session, was on the receiving end of a barrage of campaign attacks during the primary season.

Texas is one of at least 11 states that have unlimited campaign contributions from individuals, according to the National Conference of State Legislatures. Florida caps all individual contributions to $3,000 in statewide elections. California limits all individual contributions to gubernatorial candidates to $36,400 and $9,100 to statewide candidates.

The legislation is one of multiple election transparency bills Phelan filed this session after a bruising primary battle. Phelan also sponsored a bill that requires political advertisements to include disclosures if the image, audio, or video recording used were substantially altered. That bill was also sent to the Senate.

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