HB2564

Regular Session

Relating to the evaluation of Defense Economic Adjustment Assistance Grant applications.

LowStandard timeline

Low Cost

Effective:2025-09-01

Enforcing Agencies

Texas Military Preparedness Commission • Office of the Governor

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: The first DEAAG funding cycle occurring after September 1, 2025.
Agency Rulemaking: The TMPC must update internal operating procedures to reflect the removal of the panel. Expect procedural notices in the *Texas Register* between June and August 2025 regarding new evaluation workflows.

Immediate Action Plan

Update Grant Templates: Immediately revise internal application drafts to target TMPC Commissioners directly, removing technical jargon previously intended for the staff panel.
Monitor the Texas Register: Assign staff to watch for TMPC procedural updates in Summer 2025 regarding the new evaluation workflow.
Direct Engagement: Shift lobbying and pre-application inquiries from Governor’s Office staff directly to TMPC Commissioners and their immediate support personnel.

Operational Changes Required

Contracts

Existing vendor subcontracts remain valid. However, future Grant Agreements issued after September 1, 2025, will reflect the TMPC as the sole grantor. Ensure legal review of new grant terms for any shifts in performance metrics previously managed by the panel.

Hiring/Training

No new certifications required. Direct grant writing teams to pivot focus: narratives must appeal to appointed Commissioners' strategic goals rather than the technical checklists previously used by the staff panel.

Reporting & Record-Keeping

No new statutory forms. However, internal grant application templates must be revised to remove references to the "panel" and align scoring criteria directly with TMPC published priorities.

Fees & Costs

No new fees or direct cost increases.

Strategic Ambiguities & Considerations

The statute mandates evaluation based on economic impact and "any other criteria established by the commission." With the removal of the technical staff panel, the Commission has unchecked discretion to introduce subjective scoring metrics (e.g., workforce goals or housing availability) that were not previously emphasized. Monitor TMPC meetings for unwritten shifts in scoring philosophy.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsState Finances State Finances--management & Control Military Preparedness Commission, Texas

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

C.S.H.B. 2564

By: Wilson

Homeland Security, Public Safety & Veterans' Affairs

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The Defense Economic Adjustment Assistance Grant Program (DEAAG) is an infrastructure grant program designed to assist defense communities, and the program's governing statute requires the director of Texas Military Preparedness Commission to establish a defense economic adjustment assistance panel comprising a number of full-time employees (FTEs) of the governor's office to evaluate each grant application. The bill author has informed the committee that this has become a problem, as the FTEs on the panel may not have any expertise or background in military culture to evaluate these grant applications. C.S.H.B. 2564 seeks to resolve this issue by requiring the members of the commission to evaluate DEAAG applications.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 2564 amends the Government Code to remove the provision establishing a defense economic adjustment assistance panel composed of at least three and not more than five professional full-time employees of the governor's office appointed by the director of the Texas Military Preparedness Commission to evaluate defense economic adjustment assistance grant applications. The bill instead requires that the members of the commission evaluate such grant applications and accordingly removes the provision requiring the panel to submit its application scores to the commission.

EFFECTIVE DATE

September 1, 2025.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 2564 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute includes a provision absent from the introduced that removes the requirement for the panel to submit its grant application scores to the commission.

House Authors

Rep. Terry WilsonRepublican · Primary Author

Joint Authors

Phil King (R)

Senate Sponsors

Cosponsors (2)

Bill Text(with markup)

H.B. No. 2564

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the evaluation of Defense Economic Adjustment
	Assistance Grant applications.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 436.205, Government Code, is amended to
	read as follows:
	Sec. 436.205. [~~PANEL:~~] EVALUATION OF APPLICATION. [~~(a)~~
	~~The commission shall establish a defense economic adjustment~~
	~~assistance panel composed of at least three and not more than five~~
	~~professional full-time employees of the office of the governor~~
	~~appointed by the director of the commission.~~
	[~~(b)~~] The commission [~~panel~~] shall evaluate each grant
	application and assign the applicant a score based on:
	(1) the significance of the adverse or positive effect
	within the local governmental entity; and
	(2) any other criteria established by the commission.
	SECTION 2. Section 436.206, Government Code, is amended to
	read as follows:
	Sec. 436.206. MAKING OF GRANT. [~~The panel shall submit its~~
	~~scores to the commission.~~] The commission shall use the scores
	assigned under Section 436.205 to determine whether to make a grant
	to an applicant. The commission may not make a grant unless the
	legislature has appropriated the money for the grant.
	SECTION 3. Section 436.001(6), Government Code, is
	repealed.
	SECTION 4. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 21, 2025

TO:	Honorable Cole Hefner, Chair, House Committee on Homeland Security, Public Safety & Veterans' Affairs

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB2564 by Wilson (Relating to the evaluation of Defense Economic Adjustment Assistance Grant applications.), As Introduced

No significant fiscal implication to the State is anticipated.

According to the Office of the Governor, no significant fiscal implications are anticipated from the provisions of the bill.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

300 Trusteed Programs Within the Office of the Governor

LBB Staff:

JMc, MGol, LCO, KCu

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Frequently Asked Questions

Common questions about HB2564

What does Texas HB2564 do?

HB2564 eliminates the intermediate "defense economic adjustment assistance panel," consolidating all DEAAG evaluation and award authority solely with the Texas Military Preparedness Commission (TMPC). Defense communities and infrastructure contractors must realign grant strategies immediately, as applications will now be scored directly by appointed Commissioners rather than technical staff. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: The first DEAAG funding cycle occurring after September 1, 2025.

Who authored HB2564?

HB2564 was authored by Texas Representative Terry Wilson during the Regular Session.

When was HB2564 signed into law?

HB2564 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce HB2564?

HB2564 is enforced by Texas Military Preparedness Commission and Office of the Governor.

How urgent is compliance with HB2564?

The compliance urgency for HB2564 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of HB2564?

The cost impact of HB2564 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does HB2564 address?

HB2564 addresses topics including state finances, state finances--management & control and military preparedness commission, texas.

Legislative data provided by LegiScanLast updated: November 25, 2025

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