“Y’all are innovative, you’re creating jobs, you’re creating opportunity, you’re driving the economy of Texas forward. And I’m just proud to be with you," Cruz told attendees after a brief moderated conversation.
The big picture
Cruz called the reconciliation package, originally titled the One Big Beautiful Bill Act, an "extraordinary piece of legislation" featuring a suite of conservative victories. He highlighted a continuation of several provisions under the 2017 tax code update, and its inclusion of the "no tax on tips" policy he'd advanced in the Senate, as benefits for families and small businesses.
Now serving as chair for the Senate Committee on Commerce, Science & Transportation, Cruz also said he was focused on supporting workforce gains in the state through the bill.
“If you care about jobs in Texas—and I am passionate about jobs in Texas; it is my No. 1 priority—there are very, very few positions in all of government that have a greater impact on jobs in Texas than being chairman of the Senate Commerce Committee," he said. “One of the consequences of that is that all of the provisions in the OBBB that fall within the Commerce Committee jurisdiction, I was responsible for writing. And so I put literally thousands of hours into writing this bill."
Other pieces of the bill noted by Cruz include:
- Billions of dollars in new funding for the U.S. Coast Guard, which he said will lead to new investment in shipyards including those in Texas
- Significant military and border security funding, which he said will help "lock in" the decline in illegal border crossings reported this year
- A federal auction of hundreds of megahertz of the electromagnetic spectrum to the private sector, which he said will help pay down the debt and create new jobs
Cruz said he's most proud of two pieces of the reconciliation bill impacting Texas children.
He called the first, a new federal tax credit for contributions to private school scholarship funds, the most consequential school choice measure in federal law. That federal change came months after Gov. Greg Abbott signed legislation creating Texas' own education savings account program.
“That provision will unleash billions and billions of new dollars for scholarships for K-12 education across the states. That’s going to make a difference in Texas," Cruz said. "Ten, 20, 30 years from now, we are going to see millions of kids who have been trapped in failing schools; who have not been learning to read, not been learning arithmetic, not living in an environment where they were safe from violence and drugs, able to get a scholarship to go to the school of their choice."
Second, he pointed to the "Trump account" program created under the bill establishing new retirement accounts for children. Family members and employers will be able to fund those accounts, which will invest in index funds like the S&P 500.
“We’re not talking the kids of rich people. We’re talking the kids of single moms waiting tables who suddenly have the ability to accumulate very serious assets. That’s transformation," he said. "We are going to be creating an entire new generation of capitalists.”
Cruz said business leaders including Dell Technologies CEO Michael Dell have embraced the concept, with Dell already committed to matching federal contributions to the accounts of employees' children.
"401(k)s, it’s now a pretty standard employee benefit that you either get an employee contribution or an employee match. I think within just a few years this will become equally ubiquitous, that it will become a very attractive employee benefit. That will unleash a mountain of money to be invested in these accounts," Cruz said.
Quote of note
In closing, Cruz told the local business community Texas is on the right track with tax and regulatory issues that are spurring the state's economy, job market and population growth.
"I think what we understand as a matter of common sense is, jobs don’t come from Washington. They come from the people in this room, they come from small businesses, they come from entrepreneurs putting capital at risk to meet a need. But government can screw it up mightily," he said. "If you want to create an environment where you have lots of jobs, the two best levers government has are tax reform and reg reform. And every time we cut taxes, we simplify the tax code. Every time we repeal job-killing regulations, the result is more and more jobs."
One more thing
During a media availability after the luncheon, Cruz also signaled support for Texas lawmakers' efforts to improve emergency alert systems in the aftermath of the deadly July flooding in Central Texas and the Hill Country.
"It makes a lot of sense to have a system of sirens, much like you have in East Texas or West Texas in areas that are prone to tornadoes; they put in sirens because a tornado can come on you very, very quickly," he said. "I think it makes sense along the Guadalupe River to have similar sirens so that if there is a flood happening, people can be awakened and get out of harm’s way. I’ve had conversations with Lt. Gov. Dan Patrick. I have a high level of confidence the Legislature is going to pass legislation to do that."
Cruz also said resources for recovery will be available from the Federal Emergency Management Agency under federal disaster declarations signed in the wake of the floods.
