On May 13, the Texas Ethics Commission (TEC) adopted significant changes to the rules related to the regulation of lobbying activity in Texas, and these changes significantly impact which individuals and organizations have to register as state lobbyists.
In Texas, lobbying is defined as direct communication with a member of the legislative or executive branch that is designed to influence legislation or administrative action. A communication also counts as lobbying if it is meant to generate or to maintain goodwill for the purpose of influencing potential future legislation or administrative action. See Tex. Gov’t Code § 305.002(2-a). If a person lobbies and exceeds either an expenditure or compensation and reimbursement threshold, they are required to register as a lobbyist with the state and report their lobbying activities.
Previously, the TEC adjusted its two lobbyist registration thresholds every year to the nearest multiple of $10, following the Consumer Price Index for Urban Consumers published by the Bureau of Labor Statistics of the US Department of Labor. Historically, the changes were made effective on January 1st of each calendar year. For example, in 2026, the expenditure threshold increased from $970 (2025) to $990 while the compensation and reimbursement threshold went from $1,930 (2025) to $1,990. Now, under the new rules, expenditure and compensation and reimbursement thresholds will remain the same and not be subject to annual adjustments.
New Expenditure Threshold
Under the new thresholds, an individual must register as a lobbyist with the state of Texas after making expenditures of more than $650 during a calendar quarter. These expenditures do not include expenditures the individual makes to cover their own travel, food, lodging, or membership dues in order to lobby a member of the legislative or executive branch.
New Compensation Threshold
The compensation and reimbursement threshold decreased to $1,200 per calendar quarter. The incidental lobbyist exception tied to this compensation and reimbursement threshold remained unchanged. Therefore, even if an individual exceeds the newly imposed $1,200 threshold, that person would not have to register as a lobbyist if their lobbying amounts to less than 40 hours during a calendar quarter and the expenditure threshold is not otherwise met.
Reasoning for New Thresholds
During the meeting, the TEC mentioned public interest and disclosure as the main reasons for uncoupling the lobbyist registration thresholds from the inflation numbers provided by the US Department of Labor. According to Natalie McDermon, TEC’s deputy general counsel, the inflation numbers had “blown these [thresholds] up to unreasonable levels.” As a result, changes to the thresholds were originally proposed last December and revised following a previous TEC meeting in February.
The next TEC meeting will be held on September 23, 2026.
Impact on Nonprofits
Given the significantly decreased thresholds, tax-exempt organizations in Texas need to ensure that they understand the lobbying registration and reporting requirements at the state level. Although the thresholds operate on a “per quarter” basis, it is likely that certain activities or communications will require individuals doing work on behalf of their organizations to register. As always, if you have any questions related to these requirements, please reach out to our free Technical Assistance Hotline.