Texas AI Regulation 2025: What TRAIGA (HB 149) Means for Businesses

In effect Primary law: TRAIGA · Tex. HB 149 (2025), TRAIGA

Texas's flagship AI law — the Responsible Artificial Intelligence Governance Act (TRAIGA), enacted as HB 149 — took effect January 1, 2026. Unlike a broad risk-tiered regime, TRAIGA takes an intent-based approach: it bans specific harmful uses of AI rather than regulating AI development across the board. If your business develops or deploys AI systems in Texas, this is the state law to plan around, and it is backed by exclusive Texas Attorney General enforcement with steep per-violation penalties.

What the law requires

Do not deploy AI for the prohibited purposes. TRAIGA bans developing or deploying AI with the intent to unlawfully discriminate against a protected class, to incite self-harm or criminal activity through behavioral manipulation, or for government social scoring — and restricts certain biometric identification without consent.
Disclose government AI interactions. State agencies must clearly disclose to consumers when they are interacting with an AI system.
Mind the cure period and sandbox. Enforcement runs through the Texas AG with a 60-day cure period before penalties; a state-run regulatory sandbox (administered by DIR) allows supervised testing, and an AI advisory council oversees the framework.
Remember Texas preempts local AI rules. TRAIGA preempts conflicting local AI ordinances, so the state framework is the controlling layer for AI-specific rules in Texas.

Who must comply

Developers and deployers of AI systems operating in Texas, plus state agencies (which carry the consumer-disclosure duty). The prohibitions are intent-based, so ordinary business uses of AI are not banned outright — the law targets intentional discrimination, manipulation toward self-harm or crime, government social scoring, and nonconsensual biometric identification.

Penalties & enforcement

The Texas Attorney General has exclusive enforcement. Civil penalties run roughly $10,000–$12,000 per curable violation, up to $80,000–$200,000 per uncurable violation, plus up to $40,000 per day for continuing violations. There is a 60-day cure period before penalties attach. State agencies may also impose licensing sanctions.

How to comply: a practical checklist

Map where your AI systems operate in Texas and who the developer vs. deployer is for each.
Confirm none of your AI deployments are aimed at the prohibited ends — unlawful discrimination, manipulation toward self-harm/crime, social scoring, or nonconsensual biometric ID.
If you use biometric identification, get the consent TRAIGA contemplates.
Build a 60-day cure workflow so you can respond to an AG notice before penalties accrue.
Consider the DIR-run regulatory sandbox if you're testing a novel AI system.
Layer in the Texas Data Privacy and Security Act (TDPSA) profiling opt-out and consent rules, which apply to personal-data processing alongside TRAIGA.

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The laws this guide is built on

Every claim above traces to one of these verified entries in our index. Each links to its full record and its official source. Status labels reflect the live dataset as of 2026-06-17.

In effect Limited protection

TRAIGA

Texas · Effective 2026-01-01 · Tex. HB 149 (2025), TRAIGA

Texas's AI law bans specific harmful uses of AI — intentional discrimination, behavioral manipulation encouraging self-harm or crime, social scoring by government, and certain biometric identification without consent — and requires government agencies to disclose AI interactions to consumers. It includes a regulatory sandbox and preempts local AI ordinances.

View full entry → · Official source ↗
In effect Limited protection

TDPSA

Texas · Effective 2024-07-01 · Tex. Bus. & Com. Code ch. 541 (HB 4, 2023)

Texans can access, correct, delete, and obtain copies of personal data held by covered businesses, and can opt out of targeted advertising, data sales, and profiling used for decisions with significant effects (like jobs, housing, or credit). Businesses must get consent for sensitive data, including biometrics.

View full entry → · Official source ↗

Browse all Texas AI laws in the directory → · See the automated decisions topic → · Texas jurisdiction overview →

Frequently asked questions

When did the Texas AI law take effect?

TRAIGA (HB 149) was signed June 22, 2025 and took effect January 1, 2026. See the TRAIGA entry and the official bill history.

Does TRAIGA ban all AI in Texas?

No. It is intent-based: it prohibits specific harmful uses (intentional unlawful discrimination, manipulation encouraging self-harm or crime, government social scoring, certain nonconsensual biometric identification) rather than regulating AI development broadly.

Who enforces TRAIGA and what are the penalties?

The Texas Attorney General has exclusive enforcement. Penalties run roughly $10,000–$12,000 per curable violation up to $80,000–$200,000 per uncurable violation, plus up to $40,000/day for continuing violations, after a 60-day cure period.

Is there a regulatory sandbox?

Yes — TRAIGA establishes a regulatory sandbox administered by the Texas Department of Information Resources (DIR) for supervised testing of AI systems, plus an AI advisory council.

Does TRAIGA override local Texas AI ordinances?

Yes, TRAIGA preempts conflicting local AI ordinances, making the state framework the controlling AI-specific layer in Texas.